US energy storage installations jump 240% to record levels in Q3

The US energy storage market has registered a staggering 240% surge in quarterly installations in July-September 2020 compared to the previous deployment record, which was set in the prior quarter.

The latest US Energy Storage Monitor report, prepared by Wood Mackenzie and the US Energy Storage Association (ESA), shows that 476 MW/764 MWh of storage was installed during the third quarter of 2020. The greatest contribution came from the front-of-the-meter (FTM) market segment, which accounted for almost 400 MW/578 MWh, up from the prior highs of 133 MW and 296 MWh for this sector.

As per the residential storage market, it has grown to 52 MW/119 MWh. Chloe Holden, Wood Mackenzie Energy Storage Analyst, expects it to expand six times through 2025.

“The signs are pointing toward an unprecedented increase in energy storage in the coming months, moving us closer toward achieving our 100 GW by 2030 vision. With continued policy support and regulatory reform at the state and federal levels, energy storage is poised to continue this trajectory and enable a more resilient, efficient, sustainable, and affordable electric grid for all,” said Kelly Speakes-Backman, U.S. Energy Storage Association CEO.

Dan Finn-Foley, Wood Mackenzie Head of Energy Storage, believes that exponential growth will be coming due to “massive price declines and efforts to ensure eligibility.” He also projects that the latest record will not stand for long.

In 2025, the US battery energy storage market is set to reach 7.5 GW compared to 1.2 GW in 2020, the report says.

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