From ESS News
The United States had a record quarter for battery energy storage deployment from April to June, adding 5.6 GW of installations, according to a report released by the ACP and Wood Mackenzie.
Utility-scale storage led the way, adding 4.9 GW in the quarter and growing 62% year-over-year. This is enough to power 3.7 million US homes during average peak-demand hours, said the ACP.
California, Texas, and Arizona each added more than 1 GW of storage in the quarter, said the report. Wood Mackenzie forecast that Florida and Georgia will be major growth markets, ahead, due to aggressive procurement by vertically integrated utilities. For example, Georgia Power just issued a request for proposals for 500 MW of grid-scale storage.
However, supply challenges may hamper utility-scale growth, said Allison Weis, global head of storage at Wood Mackenzie. Weiss commented, “After 2025, utility-scale storage projects must comply with new, stringent battery sourcing requirements to receive the ITC [investment tax credit]. While domestic cell supply is ramping up, supply chain shortages are possible although developers are continuing to consider supply from China to fill in any gaps. A rush to start construction under the more-certain near-term regulatory framework uplifts the near-term forecast. Projects that have not met certain milestones by the end of 2025 are at risk of exposure to changing regulations. There is additional downside risk if further permitting delays threaten solar and storage projects.”
The residential storage market saw a leap in installations in Q2 as well. It added 608 MW in the quarter, representing a 132% increase year-on-year. Most of the growth was driven by California, Arizona, and Illinois, as attachment rates hit new highs and higher-capacity systems gained market share.
Batteries are included at an increased rate in quoted residential solar projects, said a report from EnergySage. Outside of Hawaii, which has a 100% battery attachment rate, California led the way among top-10 solar state markets, with 79% of quoted projects including batteries. This was followed by Texas (61%), Arizona (47%), Utah (44%), Florida (43%), and Illinois (25%).
“Residential storage is expected to outpace solar due to stronger policy resilience, high attachment rates in key markets like California and Puerto Rico, and continued ITC access through third-party ownership,” said Allison Feeney, research analyst at Wood Mackenzie.
The community-scale, commercial and industrial segment expanded 11% in Q2, adding 38 MW. California and New York led Q2 in the segment’s storage installations, accounting for over 70% of total capacity, while Illinois gained traction, said ACP.
The report forecast US storage will reach 87.8 GW by 2029, driven by residential and utility-scale segments.
However, the report warns US utility-scale storage installations could drop 10%, year-over-year, in 2027, largely due to uncertainty over pending Foreign Entity of Concern regulations on battery cell sourcing.
From pv magazine USA.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.