The U.S. energy storage market hit a new record with 12.3 GW installations across all segments in 2024, according to the latest U.S. Energy Storage Monitor report from the American Clean Power Association (ACP) and Wood Mackenzie.

The country’s annual energy storage installations increased 33% year-over-year (YoY).

In the year’s fourth quarter (Q4), grid-scale energy storage deployments reduced by 20% compared to Q4 2023. This decrease was mostly driven by delays in projects of 2 GW capacity in late-stage development.

Texas and California continued leading the market in Q4, accounting for 61% of the total installed capacity. The remaining 39% was installed across 13 states.

Kelsey Hallahan, Senior Director of Market Intelligence, ACP, said the industry is diversifying increasingly across geographical regions, with New Mexico, Oregon, and Arizona representing 30% of storage capacity additions in Q4 2024.

Hallahan added, “With a robust pipeline and forecasted sustained growth, the industry is on a path to surpass 100 GW of grid-scale storage deployed by 2030.”

Uptick in Residential and C&I sectors

The U.S. residential storage market experienced its highest year on record, exceeding 1,250 MW in 2024, a 57% YoY increase.

The country installed a record-breaking 380 MW of residential storage in Q4 2024, experiencing a 6% quarter-over-quarter growth.

The community-scale C&I storage sector installations reached 145 MW in 2024, a 22% increase compared to the previous year. California, Massachusetts, and New York comprised 88% of the installed commercial and industrial capacity.

Outlook

The report forecasts a 7% installation growth in 2025 from the previous quarter. The U.S. is projected to install 15 GW of storage in the year across all segments, a 25% YoY increase.

The country’s grid-scale storage installations are expected to reach 13.3 GW in 2025.

Allison Feeney, Research Analyst, Wood Mackenzie, said, “However, due to policy uncertainties, growth will likely slow down this year and in subsequent years. Growth will increase toward the end of the decade, with a projected 81 GW total installations from 2025 to 2029.”

Allison Weis, Global Head of Storage, Wood Mackenzie, noted that uncertainties surrounding continuing current tax incentives and implementing tariffs could change the long-term outlook.

Wies said, “The combination of new tariffs on China and other countries with continued 45x and domestic content bonus adder incentives would make US-based systems more competitively priced. However, many domestic providers are not set up to meet quick demand. If higher pricing is combined with ITC tax incentives phasing out beginning in 2028, it could lower our five-year deployment outlook by as much as 19%.”

The U.S. installed 3.8 GW of storage in Q3 2024, an 80% YoY increase, according to the Q4 2024 U.S. Energy Storage Monitor report by Wood Mackenzie and the American Clean Power Association.

The Long Duration Energy Storage Council has recommended setting a global storage target of 1.5 TW by 2030 to support the COP28 goal of deploying 11 TW renewables by the same year.