Q2 energy storage installs in US jump 162% y/y

The US added 345 MW of energy storage capacity in the second quarter of 2021, up by 162% on the year and ranking as the second-largest quarter on record, a report by Wood Mackenzie and the storage association shows.

The second quarter also brought good news on the policy front, with new state incentives announced for residential and non-residential storage. The industry is awaiting the outcome of budget reconciliation in the winter, which could include an extension of the solar investment tax credit (ITC) and possibly a standalone storage ITC.

The front-of-the-meter (FTM) segment accounted for 218 MW/729 MWh of new capacity in the second quarter. In June, Arevon Asset Management, an affiliate of Capital Dynamics, announced the opening of the 100-MW/400-MWh Saticoy battery storage system in Ventura County, California. Texas and Arizona also saw several solar-plus-storage projects reach completion.

The non-residential segment, including onsite storage and community-scale energy storage, grew by 31% on the quarter due to a jump in community storage in Massachusetts. The residential market, however, experienced its first fall in nine quarters. This was due to a large extent to equipment constraints, including a Tesla Powerwall shortage.

WoodMac and the US Energy Storage Association (ESA) say an unprecedented volume of energy storage capacity will start operations in the second half of 2021. Storage projects representing an investment of more than USD 5 billion (EUR 4.2bn) are expected to go live this year.

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