Credit score: AES
The U.S. power storage market set a report for quarterly development in Q2 2025, with 5.6 GW of installations, in accordance with the most recent U.S. Energy Storage Monitor report launched right this moment by the American Clear Energy Affiliation (ACP) and Wooden Mackenzie.
The utility-scale market led the best way, setting a report with 4.9 GW put in in Q2, sufficient capability to energy 3.7 million American houses throughout common peak demand. Whereas early adopters proceed main in deployment, exercise throughout the nation exhibits clear demand for utility-scale power storage as an answer to rising electrical energy costs and hovering power demand.
- Texas, California and Arizona added greater than 1 GW every.
- Markets such because the Southwest Energy Pool (SPP) noticed renewed exercise, with three tasks coming on-line in Oklahoma — the primary within the area in three years.
- Florida and Georgia noticed main forecast upgrades on account of aggressive procurements by vertically built-in utilities.
“Vitality storage is being rapidly deployed to strengthen our grid as demand for energy surges and helps to drive down power costs for American households and companies,” stated Noah Roberts, ACP VP of power storage. “Regardless of regulatory uncertainty, the drivers for power storage are sturdy and the trade is on monitor to provide sufficient grid batteries in American factories to produce 100% of home demand. Vitality storage will probably be important to the enlargement of the U.S. energy grid and American power manufacturing.”
Residential and CCI proceed to broaden
The residential storage market expanded 608 MW in Q2. This represents a 132% enhance year-over-year and an 8% soar quarter-over-quarter.
- Many of the development was pushed by California, Arizona and Illinois, as attachment charges hit new highs and higher-capacity methods gained market share.
Neighborhood-scale, industrial and industrial (CCI) storage expanded extra modestly at 38 MW. This represents an 11% year-over-year enhance.
- California and New York led Q2 CCI storage installations, accounting for over 70% of complete capability, whereas Illinois gained traction.
- Neighborhood storage deployment remained restricted on account of excessive prices and coverage constraints.
Market exhibits resiliency regardless of coverage uncertainty
In response to the report, U.S. storage will attain 87.8 GW by 2029, pushed by residential and utility-scale segments amidst a consistently evolving coverage surroundings. Nevertheless, U.S. utility-scale storage installations may drop 10% year-over-year in 2027 largely on account of uncertainty over pending Overseas Entity of Concern (FEOC) rules on battery cell sourcing.
“Pricing and FEOC uncertainty and gradual neighborhood storage growth are anticipated to restrict CCI section development beneath 1 GW by 2029, although Massachusetts’ SMART 3.0 could assist increase future deployment,” stated Allison Feeney, analysis analyst at Wooden Mackenzie. “Residential storage is anticipated to outpace photo voltaic on account of stronger coverage resilience, excessive attachment charges in key markets like California and Puerto Rico and continued ITC entry by way of third-party possession.”
Allison Weis, world head of storage at Wooden Mackenzie, stated that whereas the One Huge Stunning Invoice Act (OBBBA) preserved the ITC for power storage, headwinds stay and the five-year buildout might be lowered by 16.5 GW.
“After 2025, utility-scale storage tasks should adjust to new, stringent battery sourcing necessities to obtain the ITC,” stated Weis. “Whereas home cell provide is ramping up, provide chain shortages are potential, though builders are persevering with to think about provide from China to fill in any gaps. A rush to begin building beneath the extra sure near-term regulatory framework uplifts the near-term forecast. Tasks that haven’t met sure milestones by the top of 2025 are susceptible to publicity to altering rules. There’s further draw back danger if additional allowing delays threaten photo voltaic and storage tasks.”
Information merchandise from Wooden Mackenzie
