The U.S. energy storage market set a new record in 2024 with 12.3 GW of installations across all segments, according to the latest US Energy Storage Monitor report published today by the American Clean Power Association (A) and Wood Mackenzie. 705m42

The report shows a total of 12,314 MW and 37,143 MWh installed, representing increases of 33% and 34%, respectively, compared to 2023 figures.

While energy storage deployments at the grid scale in the fourth quarter declined by 20% compared to the fourth quarter of 2023, this was mainly due to the delay of 2 GW of projects in advanced development from the fourth quarter of 2024 to 2025.

Texas and California continue to lead the market, ing for 61% of the total capacity installed in the fourth quarter, while the remaining 39% was installed in 13 states, expanding storage deployment beyond the leading markets. It is expected that grid-scale storage installations will reach 13.3 GW in 2025.

The residential storage market sured 1,250 MW in 2024, marking its highest recorded year and a 57% increase over 2023 totals. In the fourth quarter of 2024, a record 380 MW of residential storage was installed, a 6% increase from the previous quarter.

In 2024, 145 MW of community, commercial, and industrial (CCI) storage were installed, representing a 22% increase compared to the previous year. California, Massachusetts, and New York ed for 88% of the installed CCI capacity.

Looking ahead to 2025, planned installations for 2025 have increased by 7% compared to the previous quarter. Across all segments, 15 GW of storage is expected to be installed this year, representing a 25% increase compared to 2024.

Kelsey Hallahan, Senior Director of Market Intelligence at A, stated, “Energy storage has entered a new phase of growth with its first year of double-digit installations. We are increasingly seeing the diversification of industry growth across various geographic regions, with 30% of storage capacity additions in the fourth quarter of 2024 coming from New Mexico, Oregon, and Arizona. With a solid project pipeline and sustained growth expected, the industry is on track to sur 100 GW of grid-scale storage installations by 2030.”

Noah Roberts, Vice President of Energy Storage at A, assured that “after another year of record installations, energy storage has solidified its position as a leading solution to strengthen energy security and grid reliability in the U.S. during a historic increase in electricity demand. The energy storage industry has rapidly scaled to adapt to the current moment and provide reliability and cost savings to U.S. communities, playing a crucial role in consolidating and balancing low-cost renewable energy and improving the efficiency of thermal power plants.”

Allison Feeney, Research Analyst at Wood Mackenzie, commented, “Activity has been strong, and our forecast for this year has been expanded. However, due to political uncertainty, growth is likely to slow down this year and in the coming years. Growth will recover towards the end of the decade, with a projected total of 81 GW of installations between 2025 and 2029.”

Allison Weis, Global Director of Storage at Wood Mackenzie, pointed out, “Uncertainties surrounding the continuation of current tax incentives and the implementation of tariffs could alter long-term outlooks. It is still too early to determine the final shape of tax incentives for Individual Retirement s (IRA) over the next year,” she stated.

Weis added, “The combination of new tariffs on China and other countries, along with the continuation of 45x incentives and the national content bonus, would make U.S. systems more competitively priced. However, many domestic suppliers are not prepared to meet immediate demand. If the price increase is combined with the gradual phase-out of ITC tax incentives starting in 2028, it could reduce our five-year implementation forecast by as much as 19%.”