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The Inflation Reduction Act to spark Energy Storage Market Boom in U.S.

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The market for rooftop solar has a sense of stability because of the extension of the solar investment tax credit (ITC) and wind output tax credit, which has inspired hope and a long-term investment perspective. It is predicted as though the energy storage sector will finally take off this year.  Energy storage in the US seems to consistently come up short throughout the previous decade, whether it came to government funding, outside investment, or a reliable battery supply. 

Developers noted that the overall cost reductions may be between 60% and 70% if a Tribal authority used an American-assembled storage project in a microgrid. Distributors of batteries and parts, off-take counterparties, investors, and developers all share in that incentive.

According to experts, new markets and utility off-takers for storage projects offering more than four-hour discharges include the Orlando Utilities Commission in Florida, NV Energy in Nevada, Georgia Power, and Minnesota’s Great River Energy. They also pointed out that businesses like Google, Microsoft, and Compass Datacenters are using non-lithium-ion storage.

Additionally, according to a recent prediction by a grid-storage researcher, 65 GW of energy storage projects will be required until 2026 to achieve the federal and state net zero goals of the United States in the ensuing 20 years. According to Bloomberg, the U.S. will reach 112 GW/396 GWh this decade thanks to 54 GW of IRA-driven storage.

Moreover, Due to supply shortages, the cost of four-hour storage systems will be around $256/kWh in 2021 compared to $324/kWh last year. The researchers agree that 2024–2026 will see the greatest influx of new storage.

Further, According to BloombergNEF, storage projects will increase by 41% in 2017 to 12.8 GW/42.8 GWh and by 27% annually in 2026 to 12.3 GW/47.3 GWh. After that, it’s expected that double-digit growth will continue, reaching 14.1 GW/54 GWh in 2030.

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