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U.S. Energy Storage Market Sets Record with 12.3 GW Installations in 2024

The U.S. energy storage market achieved a record 12.3 GW of installations across all segments in 2024, marking a 33% year-over-year (YoY) increase, according to the latest U.S. Energy Storage Monitor report by the American Clean Power Association (ACP) and Wood Mackenzie. However, Q4 saw a 20?cline in grid-scale deployments due to project delays affecting 2 GW of capacity.

Texas and California led installations, accounting for 61% of the total, while New Mexico, Oregon, and Arizona contributed 30% of Q4 additions, signaling increasing geographic diversification. ACP’s Kelsey Hallahan projects the industry will surpass 100 GW of grid-scale storage by 2030.

Growth in Residential and C&I Storage

The U.S. residential storage market recorded its best year, exceeding 1,250 MW in 2024, with Q4 alone adding 380 MW—a 6% quarter-over-quarter growth. Commercial and industrial (C&I) storage reached 145 MW, up 22% YoY, with California, Massachusetts, and New York accounting for 88% of total C&I installations.

Outlook and Challenges

The report forecasts a 7% installation growth in 2025, with total capacity additions expected to reach 15 GW, a 25% YoY increase. Grid-scale storage alone is projected to hit 13.3 GW.

However, policy uncertainties, tax incentives, and potential tariffs on Chinese imports may impact long-term deployment. Wood Mackenzie analysts caution that ITC tax incentives phasing out by 2028 and higher domestic production costs could reduce the five-year storage outlook by 19%.

The Long Duration Energy Storage Council has called for a global storage target of 1.5 TW by 2030 to align with the COP28 renewable energy goal of 11 TW.