September 10, 2019
U.S. Residential Energy Storage Market Sees Most Growth Ever in a Single Quarter in Q2 2019
Washington, DC (September 10, 2019) – The United States storage sector deployed more residential storage in Q2 2019 than in any other quarter on record, adding more than 30 megawatts for the first time, according to the new U.S. Energy Storage Monitor from Wood Mackenzie Power & Renewables and the U.S. Energy Storage Association (ESA). In a 20 percent increase from Q2 2018, 75.9 megawatts of front-of-the-meter (FTM) and behind-the-meter (BTM) storage was deployed in the second quarter of 2019.
At 35 megawatts deployed in Q2, the residential storage market was up 41 percent quarter-over-quarter in megawatt terms, a result of rising customer interest and support incentives in more state markets. The previous megawatt record for residential storage was set in Q2 2018 with 26 megawatts deployed. The FTM storage market had a relatively quiet Q2, with 18 megawatts deployed after two consecutive quarters when the FTM market topped 80 megawatts. The FTM pipeline, however, grew by 66 percent in Q2, driven by continued large-scale utility procurements and developer interest in ISO markets shown by surging interconnection requests.
“The long-term growth trends of energy storage deployment nationwide are encouraging and consequential for stakeholders, and for all electricity users who want and deserve a more resilient, efficient, sustainable and affordable electricity grid,” said Kelly Speakes-Backman, CEO of ESA. “Federal lawmakers should take note that they can help to build upon this growth, and indeed result in a 16 percent upside for the U.S. storage market, by providing a long term policy direction for every region of the country by making energy storage an explicit, standalone criteria in the federal Investment Tax Credit (ITC).” As written, Federal ITC qualifications include energy storage solely when coupled with solar power.
FIGURE:
“The nascent energy storage market in the U.S. continues to grow in fits and starts,” said Dan Finn-Foley, head of energy storage for Wood Mackenzie Power & Renewables, “but signposts such as the record residential storage quarter, massive FTM pipeline growth, and innovative policies such as the Massachusetts clean peak standard point towards an industry that is maturing and should stabilize at scale over the next two years.”
Q2 2019 saw 165 megawatt-hours of storage brought online, with BTM storage (including non-residential) contributing 83 percent of the megawatt-hours. California led the residential and non-residential markets in megawatt-hour terms, with Hawaii in second place on the residential side and Massachusetts coming in second for non-residential BTM storage. Texas and Maine were the quarter’s top states for FTM storage at 10 megawatt-hours each.
FTM project delays and a weaker-than-expected H1 in some BTM markets caused the U.S. energy storage outlook for 2019 to fall to 478 megawatts, which represents an increase of 54 percent over the 311 megawatts deployed in 2018.
The storage market will grow by roughly tenfold between 2019 and 2024, bolstered by supportive policy structures and new opportunities for storage to provide wholesale market services.
Key findings from the report:
- 75.9 MW of energy storage was deployed in the United States in Q2 2019, falling 49% QOQ
- 165 MWh of storage was brought online in the United States in Q2 2019, falling 40% QOQ
- In Q2 2019 FTM storage deployments dropped 77% QOQ in MW terms and rose by 17% YOY
- In Q2 2019 BTM storage deployments dropped 17% QOQ in MW terms and rose by 21% YOY
- BTM (residential and non-residential) storage accounted for 83% MWh deployed in Q2 2019
The most recent version of the Energy Storage Monitor is available here.
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 Wood Mackenzie:
Wood Mackenzie, a Verisk Analytics business, is a trusted source of commercial intelligence for the world’s natural resources sector. We empower clients to make better strategic decisions, providing objective analysis and advice on assets, companies and markets. For more information, visit: www.woodmac.com or follow us on Twitter @WoodMackenzie