A quarter of US energy storage system firms will reduce employee numbers and a third expect a fall in revenue during Q2 of this year because of the COVID-19 pandemic, a new study by the U.S. Energy Storage Association (ESA) has revealed.
The revelations were revealed in a survey answered by 101 members of the trade association for the American energy storage trade.
The study on the impact the coronavirus would have during the second quarter of 2020 was released by the national energy storage association on 14 April.
The study showed that 63% of respondents expected a decrease in revenues (with 33% expecting 20% or greater reduction). Of the respondents that expect to reduce workforce, most expected reductions of up to 20%.
The top three reasons cited for potential reductions in revenues and/or employment were: customer delays or cancellations; difficulty in obtaining equipment, supplies or logistical delays; and permitting and approval delays.
The manufacturing segment of the industry expected more widespread and deeper revenue reductions than the industry segment that includes developers and installers who implement storage projects, according to ESA.
Kelly Speakes-Backman, CEO of ESA, said: “The COVID-19 pandemic has impacted the energy storage industry tremendously. While we still anticipate year-over-year growth, it is clear our industry is suffering with immediate and significant risks of workforce reductions and economic damage.
“These delays upend grid reliability and resilience efforts, just as we enter fire and hurricane season, and as states, towns, and utilities are beginning to incorporate energy storage systems as backup power to prevent power system disruptions for critical healthcare facilities.”
The ESA is actively seeking immediate relief from Congress and the Administration to relieve the financial stresses on our members and the industry, which represents more than 60,000 people, caused by the virus.”
An ESA survey indicated the coronavirus was causing energy storage projects to be delayed in the US as early as March. Around a third of respondents to the survey were experiencing delays in delivering energy storage projects.