The US energy storage monitor by research institute Wood Mackenzie Power and Renewables reported a 63% growth in residential storage in the third quarter, 346 MW, over the previous quarter. The fastest development was in Arizona and North Carolina, up 73% and 100% respectively.
Texas and California dominate with 93% of MW and total MWh installed capacity.
Wood Mackenzie expects the volume of energy storage projects to grow consistently from 2025 despite a 5% decrease in 2024, which is expected to deploy 11.9GW/34.4GWh. Community, commercial and industrial storage will grow almost 300% during the five-year forecast, to a total cumulative installed effect of 63.7GW/222GWh. However, the report foresees interconnection challenges in the northeastern part of the US.
The presidential election continues to cast its shadow over the BESS market, it said. The proposed import tariffs, ranging from 7.5–25% on lithium batteries and a general tariff of 60% on imports from China, will increase costs, it said.
As domestic supply far from covers demand, the result will be higher storage costs of around $1.2/kWh, according to the report. In the worst case, Wood Mackenzie said production tax credit will be phased out in 2029 rather than 2032 and the greenhouse gas emission target removed.
With the majority of ESS battery supply coming from countries potentially at risk of increased tariffs, these tariffs and any repeal of domestic manufacturing incentives would create significant price increases, contributing to stark declines in annual installations after the first year. Wood Mackenzie will provide an updated base forecast preview in Q1/2025.
Photo: Residential energy storage. Tesla
