Residential battery storage skyrockets in record-setting 2024

The US battery storage market set another record in 2024, installing 12.3 gigawatts (GW) of new capacity across all sectors, according to a new report from the American Clean Power Association (ACP) and Wood Mackenzie.

In total, 12,314 megawatts (MW) and 37,143 megawatt-hours (MWh) of energy storage were added, marking a jump of 33% and 34%, respectively, compared to 2023.

Grid-scale storage breaks records, despite some delays

While the final quarter of 2024 saw a 20% dip in grid-scale battery storage compared to Q4 2023, this decline was mainly due to the delayed completion of 2 GW worth of projects, now pushed into 2025.

Texas and California continue to dominate the grid-scale market, making up 61% of total capacity added in Q4. The remaining installations are spread across 13 other states, showing energy storage is expanding beyond traditional leaders. In 2025, grid-scale storage installations are expected to grow further, reaching around 13.3 GW.

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ACP VP of Energy Storage Noah Roberts highlighted the growth, noting, “Energy storage is solidifying its place as a leading solution for strengthening American energy security and grid reliability in a time of historic rising demand for electricity.” Roberts emphasized storage’s key role in balancing renewable energy and improving the efficiency of traditional power plants.

Kelsey Hallahan, senior director of market intelligence at ACP, noted that the market is diversifying geographically, with significant additions coming from New Mexico, Oregon, and Arizona, which accounted for 30% of the new capacity in Q4 2024. She also predicted continued rapid growth, saying the industry is on track to surpass 100 GW of grid-scale storage by 2030.

Residential battery storage hits new highs

Residential battery storage saw its strongest year ever, installing over 1,250 MW in 2024, a 57% increase from the previous year. The last quarter alone saw a record-breaking 380 MW added, a 6% bump compared to Q3.

The community-scale, commercial, and industrial (CCI) market also had a strong year, growing 22% year-over-year with 145 MW installed. California, Massachusetts, and New York together accounted for 88% of this market segment.

Looking ahead to 2025

The forecast for 2025 remains bullish, with expectations of 15 GW in total new storage installations – up 25% compared to 2024. However, Wood Mackenzie research analyst Allison Feeney warned that policy uncertainties could slow growth temporarily before it picks back up toward the end of the decade. Between 2025 and 2029, total installations could reach as much as 81 GW.

Wood Mackenzie’s global head of storage, Allison Weis, cautioned that uncertainties around US tax incentives and tariffs could significantly impact the storage industry:

The combination of new tariffs on China and other countries with continued 45x and domestic content bonus adder incentives would make US-based systems more competitively priced. However, many domestic providers are not set up to meet quick demand. If higher pricing is combined with ITC tax incentives phasing out beginning in 2028, it could lower our five-year deployment outlook by as much as 19%.

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