1. Record quarter for energy storage installations in Q4 2023, with 4,235MW installed across grid-scale, residential, and commercial segments
2. California led the market with a 56% share of all Q4 deployments, followed by Arizona and Texas
3. Wood Mackenzie forecasts 59GW of new grid-scale storage capacity in the US between 2023 and 2028, with increased expectations for storage deployments to reach around 200GW by 2040
The final quarter of 2023 saw a significant increase in energy storage capacity installation in the US, with 4,235MW of new capacity added across grid-scale, residential, and commercial and industrial (CCI) segments. Grid-scale installations saw the most growth, reaching a record high of 3,983MW, marking the first time quarterly installations exceeded 3GW. California led the market, with a 56% share of all Q4 deployments, followed by Arizona and Texas. Residential installations also reached a record high with 218.5MW of new capacity added.
Despite record deployments in Q4, the CCI segment continued to lag behind, with only a 9% increase in installations year-on-year. Market challenges in previous quarters due to supply chain issues were eased in Q4, leading to a strong performance in the energy storage market. Wood Mackenzie forecasts 59GW of new grid-scale storage capacity in the US by 2028.
Wood Mackenzie’s full-year 2023 report revealed a total of 8,735MW/25,978MWh of energy storage capacity added throughout the year. The growth of utility-scale storage deployments nearly doubled year-on-year, reflecting a positive trend in the US energy storage market. Additionally, the US Department of Energy has increased its expectations for future storage deployments, aligning with other industry analyses.