US Continues to Break Storage Records, With 5.5 GWh Added In Q2 2023

A report from Wood Mackenzie and the American Clean Power Association states that the U.S. added 5,597 MWh of energy storage in Q2 2023, a new quarterly record. The storage boom has been fueled by a sharply rising share of renewable energy, as well as incentives at state level as well as now, through the IRA to do whatever it takes to enable more renewable capacity on the grid.

The changing dynamics of the market are clear as the grid-scale segment led the way with a massive 5,109 MWh in Q2, beating the previous record in Q4 2021 by 5%. The grid-scale segment also achieved 172% growth quarter-over-quarter. California dominated activity, with 738 MW and a 49% share of installed capacity.

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Source: US Energy Storage Monitor Q3 2023 | American Clean Power Association, Wood Mackenzie

With the market expected to double this year, Wood Mackenzie projects that the grid-scale segment will remain the key driver between 2023-2027, accounting for 83% of total installations, or 55 GW.

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Community, commercial, and industrial (CCI) installations, at 107 MWh, were higher than any quarter in 2022 but could not keep pace with the huge spike in Q1 installations, resulting in a 53% quarterly decline. However, the segment is still up 25% year-over-year.

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Residential storage recorded its second-straight quarter of decline at 381.2 MWh, behind Q1’s 388.2 MWh. California has seen the biggest decline, decreasing 17% quarter-over-quarter and 37% year-over-year.

“However, in their five year outlook,  the residential segment is expected to reach 8.0 GW in 2027.