With 100.7 MW and 264.6 MWh of energy storage deployed, the United States energy storage sector had its strongest third quarter on record with even further prospect of growth for 2020 due to planned front-of-meter (FTM) expansion next year.
While Massachusetts was the leader in FTM storage deployment this quarter, followed by fellow East Coast state Vermont and the Southern state of Arkansas, experts expect a significant growth to happen in Western states due to the recent power shutoffs as a reaction to the dangers of forest fires.
“The power shutoffs over the past few months in California will act as significant drivers of growth in residential storage into 2020 and beyond as more customers explore solar-plus-storage for backup power. Installers have already shared anecdotes about growing residential storage volumes in California, and we expect a large uptick early next year as marketing efforts for solar-plus-storage started earlier this year bear fruit. We expect roughly 1 in 5 new residential solar PV systems installed in in 2020 to be paired with storage,” said Brett Simon, Wood Mackenzie senior storage analyst.
Besides California, Hawaii and Arizona showed exceptional growth of the markets for residential storage during the third quarter. Altogether, the U.S. energy storage market will build on a strong 2019 and is expected to grow by over 12 times in MW-terms until 2024, with the strongest growth in the FTM segment (approximately up to 23 times).
“We are encouraged to see the continued strong growth of the energy storage industry,” said Kelly Speakes-Backman, CEO of the U.S. Energy Storage Association. “Three of the last four quarters have recorded more than 100 MW in deployments, experiencing a healthy diversity of customer-sited and grid-side projects, and a growing pipeline of projects in development. We can expect deployments to accelerate even further if Congress acts to pass legislation making stand-alone energy storage eligible for the 30% investment tax credit by the end of this year.”