Energy Juice Worth the Squeeze: U.S. Battery Storage Capacity Expanded 12.3 GW in 2024
Battery storage, seen by many as the bridge which makes intermittent renewable energies more resilient and longer duration, is expanding at a record pace in the United States regardless of charged political environments.
A new report indicates that the nation’s energy storage market added 12.3 GW of installed battery capacity in 2024. The latest U.S. Energy Storage Monitor report was released this week by the American Clean Power Association (ACP) and research partner Wood Mackenzie.
The previous year was itself a record in battery storage installation nationwide, but 2024 streaked right past that, according to the ACP and Wood Mackenzie. The 12.3 GW and 37.14 GWh in generation deployed last year basically leapt past 2023 by more than 33%.
“After another year of record deployment, energy storage is solidifying its place as a leading solution for strengthening American energy security and grid reliability in a time of historic rising demand for electricity,” Noah Roberts, vice president of American Clean Power Association, said in the release. “The energy storage industry has quickly scaled to meet the moment and deliver reliability and cost-savings for American communities, serving a critical role firming and balancing low-cost renewables and enhancing the efficiency of thermal power plants.”
The federal Energy Information Administration estimates that the U.S. now has close to 30 GW of utility-scale battery capacity alone, not counting other commercial, industrial and residential sectors. The utility-scale side of energy storage has tripled just in the past four years, according to the EIA data.
The ACP and Wood Mackenzie say that the residential storage market added more than 1,250 MW (1.25 GW) in 2024, a 57% rise over 2023 and another all-time high in annual installation for that category of batteries. A quarterly record of 380 MW in residential energy storage installed from October 1 to December 31, according to the monitor report.
The commercial, industrial and community-scale sectors added some 145 MW of battery capacity to augment energy projects. California, Massachusetts and New York accounted for nearly 90% of commercial, community and industrial energy storage installed.
The ACP and Wood Mackenzie anticipate battery storage installation to outpace historic levels in 2025, but caution that the growth may be muted for policy and political changes. This year’s forecast calls for 25% growth in battery storage installed capacity over 2024.
“Activity has been strong and our forecast for this year has expanded,” said Allison Feeney, research analyst at Wood Mackenzie. “However, due to policy uncertainties, growth will likely slow down this year and in subsequent years. Growth will pick back up toward the end of the decade, with a projected 81 GW total installations from 2025 to 2029.”
Despite the possible political headwinds to energy transition projects, some of the newest utility-scale battery storage installations are happening in so-called red states. For instance, earlier this year utility Alabama Power announced it was developing that state’s first ever major battery storage project to up to 150 MW in battery storage atop a retired coal power plant site.
Texas is a leading state for battery storage market deployment. Along with California, the Lone Star state accounted for 61% of 2024 energy storage installed capacity.
Residential, commercial and industrial-scale batteries are often paired as part of a microgrid solution. Texas will be home to the Microgrid Knowledge Conference happening April 15-17 at the Sheraton Dallas.
