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Market sees an 84% enhance in comparison with Q1 2023
The U.S. power storage market set a first-quarter file for capability put in in Q1 2024, with 1,265 megawatts (MW) deployed throughout all segments. This marks the very best storage capability ever put in in a primary quarter within the U.S., representing an 84% enhance from Q1 2023.
In accordance with Wooden Mackenzie and the American Clear Energy Affiliation’s (ACP) newly launched US Power Storage Monitor report, the grid-scale section put in 993 MW, producing the very best Q1 on file for the grid-scale section. Nevada, California, and Texas accounted for 90% of recent grid-scale capability added.
“The rapid growth of the energy storage industry comes at a critical time, providing a solution to growing energy demand and increasingly variable weather conditions that are placing added stress on the grid,” stated John Hensley, Vice President of Markets and Coverage Evaluation at ACP. “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.”
The residential section set a file for quarterly installations at 250 MW in Q1, an 8% enhance over the earlier file set in This fall 2023. California drove progress within the residential section, putting in 24% greater than the earlier quarter.
California additionally led the neighborhood, business, and industrial (CCI) section to put in 19.4 MW, which represents a 43% decline quarter-on-quarter (QoQ), as each New York and Massachusetts skilled one of many slowest CCI quarters in recent times.
Grid-scale section grows additional, outstripping final 12 months’s Q1 set up numbers
Regardless of seasonal patterns of undertaking installations leading to a QoQ drop, Q1 set up additions of 993 MW within the grid-scale section signify a 101% enhance over Q1 2023. The grid-scale section is forecasted to finish 2024 with 11.1 GW put in, a forty five% enhance year-over-year. Texas will overtake California of recent capability put in (in MW phrases) this 12 months as worth volatility continues to develop underneath each, increasing renewables and cargo progress within the much less regulated market.
The residential section additionally grew, with California tripling its variety of installations for residential power storage between Q1 2023 and Q1 2024. With Q1 attachment charges at 46%, there may be nonetheless lots of room for progress. Nationally, excessive rates of interest proceed to have an effect on the residential section, growing the share of Third-Social gathering Possession (TPO) installations.
The neighborhood, business and industrial (CCI) section had a down quarter. CCI storage deployments in California have remained stagnant as the vast majority of programs being interconnected proceed to fall underneath NEM 2.0. Deployments are anticipated to rise as the complete results of NEM 3.0 are realized over the approaching years.
Whereas New York and Massachusetts every had down quarters, this near-term result’s attributable to the CCI section’s low quarterly variety of installations and can doubtless be mitigated by the pipeline of recent initiatives anticipated to return on-line in 2024 and 2025.
US Authentic Tools Producers get a lift from new Home Content material steerage
Storage prices from the cell- to block-level proceed their regular decline—not solely as a direct results of lithium price declines, but additionally due to international provide chain dynamics like oversupply and market competitors.
“U.S. original equipment manufacturers (OEMs) and integrators were dealt a win with the recently released Domestic Content guidance for the Inflation Reduction Act — this changed the reporting structure to qualify for the 10% adder and enabled developers to declare their qualification without the use of manufacturing costs from the OEM directly,” stated Vanessa Witte, senior analyst with Wooden Mackenzie’s power storage staff.
Trying forward
The U.S. power storage market is anticipated to see 12.9 gigawatts (GW) deployed throughout all segments in 2024. New capability additions are on account of break the ten GW mark for the primary time ever, with 75 GW forecasted throughout all segments by way of to 2028, in keeping with the report.
Wooden Mackenzie’s five-year grid-scale forecast has elevated by 5% QoQ in MW-terms, largely pushed by an elevated pipeline of introduced initiatives. The pipeline enhance brings the cumulative quantity of recent additions by way of 2028 to 62.2 GW.
Analysis observe: Deployment numbers within the US Power Storage Monitor and different ACP market stories could differ on account of methodology variations within the knowledge assortment course of.
Information launch courtesy of Wooden Mackenzie.
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