With an 84% increase from Q1 2023, the U.S. energy storage market set the highest storage capacity record ever installed in Q1

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Energy Storage

With 1,265 MW installed across all segments in Q1 2024, the U.S. energy storage market set a first-quarter record for capacity installed. According to the recently released “U.S. Energy Storage Monitor” study from Wood Mackenzie and ACP, the grid-scale segment added 993 MW, making it the Q1 on record. Nevada, California, and Texas contributed 90% of the additional grid-scale capacity.

Residential Energy Storage Installation in Q1

In Q1, the residential category broke the previous record for quarterly installations at 250 MW. California, which installed 24% more than the last quarter, led growth in the residential segment. Additionally, California installed 19.4 MW, the most in the community, commercial, and industrial (CCI) segment.

The US market also expanded; between Q1 2023 and Q1 2024, California tripled the amount of residential energy storage installations. At 46% in Q1, attachment rates show potential for improvement. The residential market is being impacted nationally by high loan rates. This lead to an increase in the share of installations under third-party ownership. 

In 2024, 12.9 GW is anticipated to be set up across all segments of the U.S. energy storage market. According to the analysis, new capacity additions will surpass 10 GW for the first time. The expectation capacity is 75GW across all segments through 2028. The 5 year grid-scale projection from Wood Mackenzie has climbed by 5% QoQ in MW terms. This is mostly due to an increase in the pipeline of announced projects. The pipeline expansion raises the total volume of new additions to 62.2 GW through 2028.

John Hensley, Vice President of Markets and Policy Analysis at ACP commented, “A strong start to 2024 sets expectations high for the remainder of the year. We look forward to celebrating the industry’s first double-digit installation year and cheering the tight race for top storage state playing out between California and Texas.”