Energy storage in front of the meter remains mainstream in the U.S. market.

 

 

 

The U.S. energy storage market added 5.60GWh of new installations in the second quarter of 2023, setting a new quarterly record and growing 172% quarter-over-quarter. Of this, 91% of the installed capacity came from front-of-meter energy storage, totaling 5.11 GWh, up 190% QoQ and 91% YoY.

 

 

 

 

The main reason for the surge in installations is that a large number of projects that were delayed in the first quarter only began to come on line in the current quarter. Looking at the performance of energy storage installations by state, California dominated, with 49% of total capacity installed in front-of-meter storage in the second quarter.

 

 

 

 

In contrast, both commercial and industrial and household storage installations saw year-over-year declines.

 

 

 

Commercial and industrial storage installations of 0.11 GWh were down -53% YoY from the waist, but up 83% YoY, higher than any quarter in 2022, while household storage installations of 0.38 GWh have declined YoY for two consecutive quarters, albeit up 2% YoY, with California seeing the largest decline, down 17% YoY and 37% YoY.

 

 

 

"Enhancing the grid and improving product reliability can propel the U.S. energy storage market to continue to set new records as utilities and large power users increasingly turn to cleaner energy sources."

 

 

 

John Hensley, ACQP's vice president of research and analysis, said, "Despite supply chain challenges and interconnection delays, the market is on track to nearly double installations annually and will continue to grow rapidly in the coming years."

 

 

 

According to Tidewater Intelligence, in the U.S. market, it is still dominated by front-of-meter energy storage installations. It is expected that when the market stabilizes after 2025, pre-meter energy storage may be divided by industrial and commercial energy storage and household storage part of the market, but the proportion of the total market will still be more than 80%, when the U.S. installed capacity of pre-meter energy storage was more than 55GWh/year; household storage installed capacity is at 8GWh/year, and industrial and commercial is the lowest, which is expected to be at 3GWh/year.