US Energy Storage Deployments Up 46 Percent Annually in Q3 2017

Boston, Mass. and Washington, D.C., December 7, 2017 - According to the latest U.S. Energy Storage Monitor from GTM Research and the Energy Storage Association (ESA), 41.8 megawatts of energy storage were deployed across the U.S. in the third quarter of 2017. This represents 46 percent growth year-over-year and 10 percent growth over the second quarter of the year.

FIGURE: U.S. Quarterly Energy Storage Deployments by Segment

Source: GTM Research / ESA U.S. Energy Storage Monitor, Q4 2017

The front-of-meter segment continued to drive the greatest share of the market. More than two-thirds of total deployed capacity for the quarter came from a single 30-megawatt project in Texas. The report notes additional, but smaller utility projects came on-line in Florida, Tennessee and Massachusetts. 

The size, use cases and geographic diversity of front-of-meter projects will continue to increase. According to the report, utilities across 14 U.S. states have included nearly 2 gigawatts worth of storage into integrated resource planning.

Source: GTM Research / ESA U.S. Energy Storage Monitor, Q4 2017

“Energy storage is increasingly acknowledged in utilities long term resource planning across the country, said Ravi Manghani, GTM Research’s director of energy storage. “Many utilities that hadn’t considered energy storage in IRPs a year or two ago, are now explicitly modeling hundreds of megawatts of storage into their resource stacks. It’s also encouraging to see consistent mention of multiple values that storage can provide to the grid.”

“Energy storage deployments are increasing rapidly, as more policy makers and grid planners are recognizing the many benefits of storage,” said Kelly Speakes-Backman, CEO of the Energy Storage Association. “Coupled with policies that provide a clear signal to markets, and regulatory reforms that compensate storage for the full value it offers, we see this trend continuing toward 35 gigawatts by 2025.”

The residential energy storage segment hit a new high-water mark after a surge in new deployments, largely driven by California’s Self-Generation Incentive Program and Hawaii’s Customer Self-Supply Program. The U.S. saw, on average, 9 new grid-connected home energy storage systems deployed per day in the third quarter of the year, totaling 4.2 megawatts. This represents growth of 202 percent year-over-year.

The non-residential segment experienced a relatively quiet quarter in which 6.8 megawatts of energy storage were deployed. However, GTM Research is expecting a rebound for the segment in Q4 2017 and Q1 2018 as projects that recently reserved funding are expected to come on-line.

GTM Research expects 295 megawatts of energy storage to be deployed in total in 2017, up 28 percent from the 231 megawatts deployed in 2016.


Source: GTM Research / ESA U.S. Energy Storage Monitor, Q4 2017

The 95-page report offers many insights including:

  • The U.S. energy storage market grew 10% QOQ, from 38.2 MW in Q2 2017 to 41.8 MW in Q3 2017
  • Behind-the-meter deployments accounted for 26% of total MW deployed, down from last quarter’s 42% share
  • California led in both residential and non-residential energy storage deployments in Q3 2017
  • Annual market will nearly cross the 1 GW annual deployment threshold in 2019 as procurement programs and improved economics come to the forefront
  • Behind-the-meter deployments (residential plus non-residential) will make up half the annual market by 2021
  • The U.S. energy storage market will be worth $3.1 billion by 2022, a nine-fold increase from 2016 and a sevenfold increase from 2017
  • The residential segment only contributed 4% of revenues in 2016 and is expected to be about 10% this year, though this value will grow to 38% by 2022 when the annual market will be worth $1.2 billion

Download the free executive summary here.

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About U.S. Energy Storage Monitor
Delivered quarterly, the U.S. Energy Storage Monitor is the industry’s only comprehensive research on energy storage markets, deployments, policies and financing in the U.S. These in-depth reports provide energy industry professionals, policymakers, government agencies and financiers with consistent, actionable insight into the burgeoning U.S. energy storage market. www.energystoragemonitor.com

About GTM Research
GTM Research, a division of Greentech Media, a Wood Mackenzie company, provides critical and timely market analysis in the form of research reports, data services, advisory services and strategic consulting. GTM Research's analysis also underpins Greentech Media's webinars and live events. Our coverage spans the green energy industry, including solar power, grid modernization, energy storage and wind power.

About Energy Storage Association
The Energy Storage Association is the national trade association dedicated to energy storage, working toward a more resilient, efficient, sustainable and affordable electricity grid – as is uniquely enabled by energy storage. With more than 150 members, ESA represents a diverse group of energy service companies, independent power producers, electric utilities, financiers, insurers, law firms, installers, manufacturers,  component suppliers and integrators involved in deploying energy storage systems around the globe. More information is available at: www.energystorage.org.
 

Media Contacts
Mike Munsell, GTM Research, Marketing Manager: (617) 500-7764, munsell@gtmresearch.com   
Ellen Backus, ESA Communications, (202) 765-2800, ellen@teamsilverline.com.