The U.S. energy storage market set a new record in 2024 with 12.3 gigawatts (GW) of installations across all segments, according to the latest U.S. Energy Storage Monitor report by the American Clean Power Association (ACP) and Wood Mackenzie. The report shows a total of 12,314 megawatts (MW) and 37,143 megawatt hours (MWh) deployed, representing increases of 33% and 34% respectively, over 2023 numbers.
Record Growth for Grid-Scale Storage
While Q4 grid-scale energy storage deployments were down 20% compared to Q4 2023, this was primarily due to the delay of 2 GW of projects in late-stage development from Q4 2024 to 2025.
Texas and California continue to lead the market, with 61% of the total installed capacity in Q4, while the remaining 39% was installed across 13 states, expanding storage deployment beyond the leading markets. Grid-scale storage installations are forecasted to reach 13.3 GW in 2025.
Noah Roberts, VP of Energy Storage at ACP, stated that energy storage is becoming a key solution for strengthening U.S. energy security and grid reliability amid rising electricity demand. He highlighted the industry’s rapid growth in delivering reliability and cost savings by balancing renewables and improving thermal plant efficiency.
Kelsey Hallahan, ACP’s Sr. Director of Market Intelligence, noted that energy storage entered a new growth phase with its first year of double-digit deployment. In Q4 2024, New Mexico, Oregon, and Arizona accounted for 30% of capacity additions. She projected the industry is on track to exceed 100 GW of grid-scale storage by 2030.
Residential and CCI See Strong Year
The residential storage market exceeded 1,250 MW in 2024, marking its highest year on record and 57% above 2023 totals. A record-breaking 380 MW of residential storage was installed in Q4 2024, a 6% increase over the previous quarter.
145 MW of community-scale, commercial and industrial (CCI) storage was installed in 2024, a 22% increase over the previous year. California, Massachusetts, and New York accounted for 88% of installed CCI capacity.
2025 Forecast Sees Continued Growth
Forecasted installations for 2025 have increased 7% over last quarter’s forecast. Across all segments, 15 GW of storage is expected to be installed this year, marking a 25% increase over 2024.
Allison Feeney, research analyst at Wood Mackenzie, stated that while activity is strong and the 2024 forecast has expanded, policy uncertainties may slow growth in the coming years. She projected a rebound by the decade’s end, with 81 GW of installations expected from 2025 to 2029.
Allison Weis, Wood Mackenzie’s global head of storage, highlighted that uncertainties around current tax incentives and new tariffs could impact the long-term outlook. She noted that while tariffs on China, combined with 45X and domestic content bonus adders, could make U.S.-based systems more competitive, domestic providers may struggle to meet quick demand. Weis warned that if rising prices align with the phaseout of ITC incentives starting in 2028, the five-year deployment outlook could decline by up to 19%.
