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U.S. energy storage market topped 4 GW of installations in Q4 2023 – a record showing

The U.S. energy storage market continues rapid growth, with a record-shattering 4,236 MW installed in the final quarter of 2023.

According to the latest American Clean Power Association (ACP) and Wood Mackenzie-crafted U.S. Energy Storage Monitor report, that represented a 100 percent increase from Q3 and a 358 percent increase compared to the same period just a year prior. It was the first time the grid-scale segment surpassed 3 GW in a single quarter.

“The energy storage industry continues its incredible growth trajectory, with a record quarter helping drive home a banner year for the technology,” John Hensley, ACP’s vice president of markets and policy analysis, said. “These additions bring with them critical benefits to our power grid. Energy storage has unique capabilities to address grid resilience, with the ability to serve as generation, load, and transmission. These benefits to the grid have been evident, especially in recent years, as storage has provided reliability and stability during critical moments like historic heatwaves. With a robust pipeline, the future for energy storage deployment is strong.”

Total deployments for the year, across all segments, topped 8.7 GW, an 89 percent increase of 2022. That included more than 7.9 GW of grid-scale installations – a 98 percent increase over the previous year. Those strong showings led Wood Mackenzie and ACP to update their five-year forecast to 59 GW of new capacity additions by 2028.

“Q4 2023 was extremely strong for the US energy storage market, helped by easing supply chain challenges and system price declines,” Vanessa Witte, senior analyst at Wood Mackenzie, said. “The quarter was commanded by deployments in the grid-scale segment, which recorded the highest quarter-on-quarter growth of any segment, ending the year with a 113% increase over Q3 2023. California continued to lead installations in both MW and MWh terms, closely followed by Arizona and Texas.”

The residential segment reached 218.5 MW, whereas the Community, Commercial, and Industrial (CCI) segment remained fairly stagnant quarter over quarter with 33.9 MW installed in Q4. Still, distributed storage exceeded 2 GWh in 2023.

Chris Galford

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