December 10, 2020: The US Energy Storage Association’s latest US Energy Storage Monitor report on December 2 said 736MWh of energy storage had been deployed in the third quarter of 2020, an increase of 240% over the previous quarter.
The vast majority of the growth was in the front of the meter segment, although residential storage did also grow.
“The new record for storage is not an anomaly but rather a sign of things to come as FTM storage procurements, particularly in California, grow dramatically in number and size,” said Wood Mackenzie, which prepares the report.
The US battery energy storage market is set to grow from 1.2GW in total to 7.5GW in 2025, driven primarily by large-scale utility procurements, the statement said.
“Solar-paired storage will account for a large majority of these installations, and potentially the vast majority, as developers aim to capture value from the Investment Tax Credit.”
The tax credit was enacted in 2006 to spur on the solar industry. It awards a tax credit of 26%, reducing to 22% by the end of this year, to solar systems built at residential or commercial properties.
Since it was implemented the solar industry has shot up by more than 10,000%, according to the Solar Energy Industries Association.
“These eye-catching deployment totals represent only the beginning of a long-anticipated scale-up for the US storage market,” said Dan Finn-Foley, Wood Mackenzie head of energy storage.
“Massive price declines and efforts to ensure eligibility have set the stage for exponential growth, and the curtain has only just risen on the first act. Considering the scale of systems anticipated for 2021 we do not expect this record, remarkable as it is, to stand for long.”