US Energy Storage Market Experiences Largest Quarter Ever

The U.S. deployed 234 megawatt-hours of energy storage in Q1, 2017.

BOSTON Mass. and WASHINGTON D.C. (June 6, 2017) The first quarter of 2017 was the biggest quarter in history for the U.S. energy storage market. According to GTM Research and the Energy Storage Association’s (ESA) latest U.S. Energy Storage Monitor, 234 megawatt-hours of energy storage were deployed in the first quarter, which represents more than fiftyfold growth year-over-year.

When measured in megawatts, it was the third-largest quarter in history, only behind the fourth quarters of 2015 and 2016. Front-of-meter deployments grew 591 percent year-over-year, boosted by a few large projects in Arizona, California and Hawaii.

“Much of this growth can be attributed to a shift from short-duration projects to medium- and long-duration projects in the utility-scale market, along with a surge of deployments geared to offset the Aliso Canyon natural gas leak,” said Ravi Manghani, GTM Research’s director of energy storage. “Although, the industry shouldn’t get too comfortable, as with fulfilment of Aliso Canyon deployments, there aren’t that many 10+ megawatt-hour projects in the 2017 pipeline, indicating that the first quarter may be the largest quarter this year.”

In all, front-of-meter energy storage represented 91 percent of all deployments for the quarter.

The behind-the-meter market segment, which is made up of residential and commercial energy storage deployments, declined 27 percent year-over-year in megawatt-hour terms. The report attributes the slowdown to a pause in California’s Self-Generation Incentive Program.

California will remain the undisputed king of the U.S. storage market over the next five years. Arizona, Hawaii, Massachusetts, New York and Texas will all battle for second place, with each market forming a significant chunk of deployments through 2022, at which point GTM Research forecasts the U.S. annual market to reach 2.6 gigawatts, and 7.2 gigawatt-hours.

Key Findings

  • 71 megawatts of energy storage were deployed in Q1 2017, growing 276% over Q1 2016.
  • 233.7 megawatt-hours of energy storage were deployed in Q1 2017, an increase of 944% from the same quarter last year.
  • Front-of-the-meter deployments grew 591% from Q1 2016 in MWs, boosted by a few large projects in Arizona, California and Hawaii.
  • Behind-the-meter deployments dropped 32% year-over-year in MWs, much of which can be attributed to declines in California’s behind-the-meter market as players awaited the opening of the new Self-Generation Incentive Program regime.
  • GTM Research expects the U.S. energy storage market to grow to roughly 2.6 GW in 2022, almost 12 times the size of the 2016 market.
  • By 2022, the U.S. energy storage market is expected to be worth $3.2 billion, a tenfold increase from 2016 and a fivefold increase from this year. Cumulative 2017-2022 storage market revenues will be $11 billion.

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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, 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, energy efficiency, and wind power.

About Energy Storage Association
The Energy Storage Association is the national trade association for the energy storage industry whose mission is to promote, develop and commercialize competitive and reliable energy storage delivery systems for use by electricity suppliers and their customers. ESA members represent a diverse group of entities, including electric utilities, energy service companies, independent power producers, and technology developers deploying advanced batteries, flywheels, compressed air energy storage, thermal storage, pumped hydropower, supercapacitors and component suppliers.


Media Contact
Mike Munsell, GTM Research, Marketing Manager: 617.500.7764, munsell@gtmresearch.com  

Matt Roberts, Energy Storage Association, Executive Director: 202-580-6282, m.roberts@energystorage.org