Across all segments, including residential, commercial and industrial, and utility-scale, energy storage had year-over-year deployment growth in 2024.
“The energy storage industry has quickly scaled to meet the moment and deliver reliability and cost-savings for American communities, serving a critical role firming and balancing low-cost renewables and enhancing the efficiency of thermal power plants,” said American Clean Power vice president of energy storage Noah Roberts.
Over 12.3 GW and 37.1 GWh of energy storage was deployed in the U.S. in 2024, Wood Mackenzie and the American Clean Power Association (ACP) reported. This represents 33% and 34% growth respectively over 2023 totals.
Grid-scale storage deployments alone are expected to reach 13.3 GW in 2025. Across all segments, Wood Mackenzie expects 15 GW of storage deployments, growing another 25% over the record year of 2024.
“Energy storage has entered a new phase of growth with its first year of double-digit deployment. We are increasingly seeing the industry’s growth diversified across geographic regions, with 30% of storage capacity additions in Q4 2024 represented by New Mexico, Oregon, and Arizona,” said Kelsey Hallahan, ACP senior director of market intelligence.
Grid-scale storage had a slowdown in deployment in Q4, down 20% compared to the previous year’s Q4. Wood Mackenzie said this was primarily due to the delay of 2 GW of projects in late-stage development, pushed from Q4 2024 to 2025.
Texas and California continued to lead the grid-scale storage market and represented 61% of total installed capacity in the fourth quarter. The remaining 39% was installed in 13 states, said the report.
Hallahan said with a robust pipeline and forecasted sustained growth; the U.S. is on a path to deploy over 100 GW of grid-scale storage by 2030.
Residential energy storage had a boom year for growth, deploying 1.25 GW in 2024, a 57% leap above 2023 totals. Residential battery installers had a record quarter in Q4 2024, rising 6% quarter-over-quarter by deploying 380 MW.
Community, commercial and industrial storage also grew year-over-year, rising 22% to 145 MW deployed. The report said California, Massachusetts and New York led the way, deploying a combined 88% of the capacity installed.
Uncertainty ahead
“Due to policy uncertainties, growth will likely slow down this year and in subsequent years,” said Allison Feeney, research analyst, Wood Mackenzie. “Growth will pick back up toward the end of the decade, with a projected 81 GW total installations from 2025 to 2029.”
A key uncertainty being watched by the industry is whether tax incentives will continue through the next decade. Allison Weis, global head of storage for Wood Mackenzie said it is “still too early” to predict the outcome of Inflation Reduction Act incentives over the coming year.
Weis said the combination of new tariffs on China and other countries and the continuation of the 45x domestic content incentive would make U.S. made batteries more competitively priced, but prices are expected to rise. What’s more, domestic providers are not yet set up to meet quick demand, she said.
“If higher pricing is combined with [Investment Tax Credit] tax incentives phasing out beginning in 2028, it could lower our five-year deployment outlook by as much as 19%,” said Weiss.
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