In Q4 2023, The US Battery Storage Sector Broke Deployment Records

In the final quarter of 2023, the US battery storage market experienced a remarkable surge, marking a 101% increase from the preceding quarter in deployment across all sectors. According to the latest “US Energy Storage Monitor” report by Wood Mackenzie and the American Clean Power Association (ACP), a total of 4,235 megawatts (MW) were installed during this period.

Notably, the grid-scale segment surpassed 3 gigawatts (GW) for the first time in a single quarter, nearly reaching 4 GW with 3,983 MW of new capacity additions. This represented an impressive 358% year-over-year increase.

John Hensley, the ACP’s vice president of markets and policy analysis, emphasised the unique capabilities of energy storage in enhancing grid resilience by serving as generation, load and transmission. He pointed out the reliability and stability provided by storage during critical moments such as historic heat waves, foreseeing a promising future for energy storage deployment due to a strong pipeline.

Vanessa Witte, senior analyst with Wood Mackenzie’s energy storage team, attributed the exceptional performance of the US energy storage market in Q4 2023 to the alleviation of supply chain challenges and declining system prices. She highlighted the grid-scale segment’s outstanding quarter-on-quarter growth, which saw a 113% increase over Q3 2023.

California maintained its position as the leader in both MW and MWh installations, closely followed by Arizona and Texas. Despite a slight increase in the US residential segment, reaching 218.5 MW, it only marginally exceeded the previous quarterly installation record set in Q3 2023. The market gains in California were partially offset by a contraction in Puerto Rico, which experienced fluctuations as incentive funds fluctuated.