Energy storage deployed more capacity than any third quarter in U.S. history, according to a new report from the Energy Storage Association.
The U.S. sector deployed 100.7 MW (totaling 264.6 MWh of duration) of storage in the quarter ending Sept. 30, according to the ESA and research partner Wood Mackenzie. Massachusetts led the way with front-of-meter (FTM) deployment totaling 58 MWh, while Vermont and Arkansas tied for second place with 24 MWh.
“We are encouraged to see the continued strong growth of the energy storage industry,” said Kelly Speakes-Backman, CEO of the U.S. Energy Storage Association. “Three of the last four quarters have recorded more than 100 MW in deployments, experiencing a healthy diversity of customer-sited and grid-side projects, and a growing pipeline of projects in development. We can expect deployments to accelerate even further if Congress acts to pass legislation making stand-alone energy storage eligible for the 30% investment tax credit by the end of this year.”
Residential storage grew by nearly 40 MW in the third quarter of the year. California, Hawaii and Arizona were the largest US markets for residential storage in during the timeframe.
“The power shutoffs over the past few months in California will act as significant drivers of growth in residential storage into 2020 and beyond as more customers explore solar-plus-storage for backup power,” Speakes-Backman added.
FTM storage growth will accelerate significantly starting in 2020 as the segment adds 825 MW next year and 2,635 MW the following year, according to forecasts.
The U.S. energy storage market is expected to grow by over 12x in MW-terms between 2019 and 2024. This outlook was upgraded versus the second quarter as a result of significant activity in the FTM segment, including several new large-scale project and procurement announcements, as well as significant upside due to massive short-term capacity additions planned in Southern California. Approximately 23-fold growth is expected in the FTM segment between 2019 and 2024.