The United States stands as a global leader in the energy storage sector, pioneering advancements in its development. Its well-established market mechanisms, robust business models, and supportive policies have propelled the rapid growth of the nation’s energy storage industry. Now, let’s delve into the noteworthy figures for the first half of 2023 concerning the installed capacity of energy storage in the U.S.
U.S. Energy Storage Installed Capacity in the First Half of 2023
In the first half of 2023, the new installed capacity of utility energy storage (at the grid level) within the U.S. soared to 2.06 GW/ 6.65GWh, based on data sourced from ACP and Wood Mackenzie. This represents an appreciable surge of 8.4% and an impressive 35.5% year-on-year escalation. Notably, within the second quarter of 2023 (Q2 2023), the installed capacity of U.S. utility energy storage at the grid scale surged to 1.51 GW/5.10 GWh, marking a remarkable year-on-year surge of 175% and 229% surge in energy storage capacity.
As of Q2 2023, the landscape unfolds with 260 utility energy storage projects currently in progress within the U.S., collectively encompassing a substantial magnitude of 21.1 GW/59.9 GWh in energy storage. This remarkable growth stands as doubling from the size witnessed during the preceding Q1 2023 period.
Annually New Energy Storage Installations in the U.S. from 2017 to 2022
As per insights from Wood Mackenzie, the U.S. energy storage market observed a new installed capacity of 0.78 GW/2.15 GWh in the first quarter of 2023 (2023Q1), marking a decline of 11% and 8% in comparison to the previous year’s figures. Analyzing the available data, it becomes apparent that during Q1 2023, distinct categories of energy storage exhibited the following installed capacities: grid-level energy storage reached 0.55 GW/1.55 GWh, commercial and industrial energy storage attained 0.07 GW/0.20 GWh, and community energy storage and household energy storage achieved 0.16 GW/0.39 GWh. Remarkably, these figures translate to a distribution where the installed capacity, measured in megawatts (MW), accounted for 71.2%, 8.8%, and 19.9%, respectively.
Quarterly New Energy Storage Installations Since 2022
U.S. Energy Storage Installed Capacity Projection
Looking ahead to the realm of large-size storage, Wood Mackenzie’s data offer a compelling narrative. The United States is poised to introduce a remarkable influx of 75 GW in new energy storage installations spanning the period from 2023 to 2027, with an impressive 81% of this total earmarked for the large-size storage sector. Projections for 2023 are particularly noteworthy, indicating that the installed capacity of U.S. large-size storage is set to scale to approximately 8 GW, signifying an outstanding year-on-year growth of approximately 100%.
Within the landscape of the first quarter of 2023 (Q1 2023), a significant milestone is reached as the cumulative installed capacity of large-size storage projects burgeons to 502 GW. This achievement reflects an admirable 40% surge compared to the preceding year, encompassing a substantial 72 GW of projects that have secured the announcement of grid connection permits, along with a remarkable 430 GW that are actively seeking permitting.
Furthermore, during the same quarter, the market dynamics are underscored by the selling price of large-size storage energy storage systems in the U.S., which stands at $1,898 /kW. This figure registers a notable year-on-year decrement of 6.3%, predominantly attributed to the decline in the cost of essential raw materials.
U.S. large-size energy storage project capacity and year-on-year growth rate
Regarding commercial and industrial energy storage, as per Wood Mackenzie’s projection, the installed capacity is set to reach 0.37GW in 2023. This growth signifies a remarkable year-on-year increase of around 250%, fueled by the completion of projects postponed from the previous year and the ongoing installation progress of new projects this year. Anticipating the influence of state incentives, community solar initiatives, and other contributing factors, it is foreseen that the new installed capacity for U.S. commercial and industrial energy storage will surge to 1.1GW in 2027. This expansion corresponds to CAGR of 34% spanning from 2022 to 2027.
Turning our attention to household energy storage, Wood Mackenzie’s forecast reveals that there will be the swift expansion of U.S. household photovoltaic installations. The outlook projects the new installed capacity to ascend to 2.6GW by 2027, demonstrating an impressive CAGR of 41% from 2022 to 2027.
In the domain of energy storage policies, the United States has embarked on a trajectory of long-term developmental aspirations, coupled with the implementation of pertinent policies and regulations designed to underpin the multifaceted growth of energy storage across various application scenarios. The maturity and robustness characterizing the U.S. energy storage market, and its business model construction stand as emblematic achievements. Furthermore, the federal government has taken assertive steps to promulgate energy storage policies with a dual emphasis on technological research and economic mechanisms, thereby boosting the large-scale adoption of these technologies.
Energy storage has been strategically designated as a pivotal sector in the United States. Through heightened investments in technology, the nation has diligently forged an industrial framework that encompasses independent research and development, manufacturing, and comprehensive real-world deployment of emerging energy storage technologies. This concerted effort is aimed at establishing self-reliance in energy storage on a domestic scale in the times to come. Furthermore, the Inflation Reduction Act introduces supplementary tax incentives tailored for energy storage systems that satisfy specified localization thresholds. This legislative initiative underscores the government’s resolute commitment to stimulate the resurgence of manufacturing and localized production.
