US energy storage sector hits new capacity record in fourth quarter of 2019

Cruising on a growth surge expected to continue through at least 2025, the U.S. energy storage market set a new power capacity record in the fourth quarter of last year, deploying 186.4 megawatts (MW) and 364.2 megawatt-hours (MWh) of storage.

“2019 was a remarkable year for energy storage, and the record-breaking fourth-quarter numbers reaffirm the industry’s tremendous growth,” ESA CEO Kelly Speakes-Backman said. “The electricity system of today and tomorrow relies on energy storage expansion, inclusion, and integration. To accelerate its resilience, reliability, and economic benefits, it is critical that federal lawmakers enact a standalone federal energy storage tax credit.”

Those figures, which drew from all U.S. market segments, came from Wood Mackenzie and the U.S. Energy Storage Association through the latest U.S. Energy Storage Monitor report. Both front of the meter (FTM) and behind the meter markets (BTM) grew. For the FTM market, this took the form of a 160 percent quarter over quarter growth spike representing the lion’s share of growth: 103.8 MW of deployment. It was a major rally for that market, which had spent two consecutive previous quarters making up less than 50 percent of deployment.

Massachusetts ruled in those rankings, but when it came to BTM matters, California was king. The non-residential BTM sector experienced its second-strongest quarter to date, deploying 42.2 MW, while the residential market installed 40.4 MW.

“The BTM segment had a banner year,” Wood Mackenzie Senior Analyst Brett Simon said. “California continues to be a market to watch, and we expect almost one in four residential solar systems across the state to have storage attached in 2020. This is due to multiple factors, including the Self-Generation Incentive Program, opportunities from time-of-use rates, continued desire for resilience in the wake of PSPS events, and even some upside from the new home solar mandate. Hawaii also will continue to see strong growth, with most residential solar installers already reporting pipelines where over 90% of their residential solar systems come equipped with storage.”

The results prompted the report’s creators to predict continued, serious market growth over the next six years. While the market currently sits at an annual deployment of 523 MW, they predict it will reach around 7.3 GW come 2025 and surge to a size of $7.2 billion.