– U.S. energy storage market reached a new deployment high in Q4 of 2023 with 4,236 MW installed
– Grid-scale energy storage deployment exceeded 3 GW in one quarter for the first time
– Total deployments in 2023 across all segments reached 8,735 MW and 25,978 MWh, representing an 89% increase over 2022
The U.S. energy storage market achieved a new deployment high in the final quarter of 2023, with 4,236 MW installed, marking a 100% increase from the previous quarter. This growth is attributed to grid-scale energy storage exceeding 3 GW installed in one quarter for the first time, with 3,983 MW of new capacity additions, a 358% increase from the same period in 2022. The industry continues to experience remarkable growth, providing critical benefits to the power grid by enhancing resilience and stability during crucial moments like heatwaves.
In the residential segment, deployments reached 218.5 MW, surpassing the previous quarterly record. The community, commercial, and industrial (CCI) segment remained stagnant, with 33.9 MW installed in Q4. Total deployments in 2023 across all segments reached 8,735 MW and 25,978 MWh, an 89% increase from 2022. The future outlook for energy storage deployment is promising, with a projected 59 GW of new capacity additions by 2028.
Distributed storage exceeded 2 GWh in 2023, driven by strong growth in the residential segment. Over the next five years, the residential market is expected to continue to expand, with over 9 GW due to be installed, while the CCI segment is forecasted to see a growth rate of 246% with 4 GW installed. The U.S. energy storage market is on a strong growth trajectory, with significant potential for further expansion in the coming years.