The US Battery Storage Market: Growth, Trends, and Future Outlook

In the last years, the US battery storage market has grown tremendously, and all tendencies show that this will continue. This review provides an in-depth look at the latest market data, highlighting drivers of growth and technologies that are likely to define the future of energy storage.

How Is the Growth of the US Battery Storage Market?

By the end of Q2 2023, US battery storage was at 12.689 GW, up 61% from a year earlier, with 1.931 GW added that quarter. For this year, 6.4 GW was installed, according to the EIA, a 70% growth rate. It is expected to double again by 2024 as the US cements its position as a world leader in battery storage.

What's driving this market?

A number of factors are driving the recent, rapid expansion of the US battery storage market:
Policy Supports: IRA is believed to be one crucial law that provides financial incentives for big storage projects. Such a policy support framework has hastened the development of new storage infrastructures throughout the country.
Technology: Advancement in innovations such as solid-state batteries is improving the performance of storage systems. For instance, using the technology of solid-state battery, ION Storage Systems has realized over 125 cycles with less than 5% capacity fade.

Which Regions Lead Growth in Battery Storage?

Currently, California, Texas, and Arizona are the top three states in deploying battery storage throughout the US. Indeed, California is offering lithium-ion battery storage systems with 4-hour continuous discharge duration. These three regions also have the highest shares of utility-scale projects, where grid batteries make up most of the newly installed capacity.

What's in Store for the US Battery Storage Market?

The US battery storage market is very bright, with further robust growth expected to continue through 2024 and beyond. A number of experts anticipate that the US will shortly become the world's largest market for stationary battery storage. In its maturing stage, the market is expected to show rational growth, with improvement in price competition and stabilization of battery and system prices by Q2 2024.

What New Technologies Will Shape the Future of Energy Storage?

The global market is, for the time being, dominated by lithium-ion technology. A number of next-generation technologies-sodium-ion among them-are in various stages of development. Breakthroughs in any of these could significantly disrupt the direction of energy storage development and create new paths to viability for large-scale and behind-the-meter storage. Residential storage systems are increasingly being installed paired with solar PV, while nonresidential systems are being installed primarily as a standalone technology.