The first quarter of 2019 was the highest ever in terms of energy storage capacity and revenue generated within the non-residential storage market.
The residential energy storage market recorded its second strongest quarter in Q1 2019 as well, according to a new study conducted by Wood Mackenzie Power & Renewables and the US Energy Storage Association.
The energy storage market is expected to triple between 2019 and 2020.
Key takeaways from the report include:
- The US recorded an increase in energy storage capacity deployed by 232% year-over-year (148.8MW of storage capacity was deployed, a 6% increase from Q4 2018
- Q1 2019 was the second largest ever in megawatt-hour terms. 271.1 MWh of storage was brought online, a 110% rise YOY
- Behind-the-meter storage deployments constituted 46% of Q1 2019 whilst Front-of-the-meter storage deployments constituted 54%
- The integration of solar and storage is driving the market forward
- 2019 energy storage deployments are expected to double that of 2018
Kelly Speakes-Backman, CEO at Energy Storage Association, said: “These first quarter numbers indicate that 2019 will be a banner year for energy storage in the United States.
“It’s become clear that states are already unlocking the potential of storage by passing legislation and creating regulatory frameworks to encourage energy storage deployment. The industry is responding by developing storage projects and creating jobs in their states.”
California once again led the U.S. storage market in Q1 2019, while Arizona, New Jersey and New York also posted strong growth. State level regulatory activity, such as the Value of Distributed Energy Resources (VDER) proceeding in New York state and the Solar Massachusetts Renewable Target (SMART) Program in Massachusetts, continue to spur pipeline buildout in these states and position them for substantial growth in the next few years.
“Based on activity this quarter, we’re keeping an eye on New York state,” said Wood Mackenzie Power & Renewables senior energy storage analyst Brett Simon. “When the New York bridge incentive opened at the end of April 2019, the first block of the retail incentive was fully subscribed in a little over a week, showing how much pent up storage demand there was in New York. New York also updated its VDER program to guarantee greater certainty for compensation under the program’s value stack, which is a boon for energy storage projects in the state.”
The most recent version of the Energy Storage Monitor is available here.