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Recently, "U.S. Energy Storage Monitor" released its latest report. In the fourth quarter of 2023, U.S. energy storage installations hit a new record!
The total installation volume for the fourth quarter was 4.23 GW / 12.35 GWh, an increase of 99% compared to the third quarter. Notably, grid-side storage installations exceeded 3 GW in a single quarter for the first time, with an additional 3.98 GW, representing a 358% increase compared to the same period last year!
Quarterly Installation Volumes from 2021 to 2023
Senior energy storage analyst Vanessa Witte stated: "Thanks to the easing of supply chain issues and a decline in system prices, the U.S. energy storage market performed exceptionally well. The growth in grid-side storage is particularly impressive. California continues to lead, followed closely by Arizona and Texas."
The growth momentum of residential storage, which had been strong, showed signs of slowing down. The installation volume for the fourth quarter was 218.5 MW, slightly higher than the record of 210.9 MW set in the third quarter. The market growth in California was offset by a contraction in Puerto Rico, which experienced significant fluctuations due to subsidy policy incentives.
Commercial and industrial (C&I) storage did not perform well in the fourth quarter, with an installation volume of only 33.9 MW. California, Massachusetts, and New York were comparable, each contributing about one-third of the total.
The report shows that the total installation volume for 2023 reached 8.73 GW / 25.98 GWh, an 89% increase compared to 2022, just shy of doubling, setting a new record!
Analyst Witte added: "In 2023, the total grid-side installation volume reached 7.91 GW / 24 GWh, a 98% increase compared to 2022. We predict that over the next five years, an additional 59 GW will be installed, indicating a very large market potential!"
C&I and residential storage also delivered impressive results in 2023. The installation volume exceeded 2 GWh, setting a new record as well! This achievement was driven by the exceptional performance of C&I storage in the first quarter and residential storage installations exceeding 200 MW in both the third and fourth quarters.
The residential storage market is expected to continue to thrive over the next five years, with new installations projected to exceed 9 GW. Although the total volume for C&I storage is smaller, expected to be below 4 GW, its growth rate will exceed twofold, reaching 246%.
