The top ten markets for distributed energy storage in the US are expected to expand capacity by six times between 2020 and 2030, according to a new report released by Guidehouse Insights.
The 10 states are expected to reach 171.7MW of distributed energy storage (DESS) capacity in 2020. By 2029, these 10 states are projected to deploy 1,072MW of DESS capacity.
California and Hawaii are current market leaders, but new utility business models, sustainability targets, and policies are expected to bring other states to the forefront.
States such as Massachusetts and New York are expected to introduce new policies encouraging the uptake of DESS.
Recent technological and manufacturing advances have led to significant cost declines in DESSs located behind the meter.
This has created major motivation for the technology’s uptake.
As the number of cities, states, and businesses committed to carbon reduction goals swells and the demand for onsite generation of renewable energy mounts, DESS is poised to take a leading role in the new energy paradigm shift.
The market is projected to expand into an increasing number of states as utilities charge customers based on usage patterns, relay accurate price signals, and design rate structures that reflect the fixed and variable costs of providing electric service.
Ricardo F. Rodriguez, research analyst with Guidehouse Insights, said: “The US distributed energy storage market has grown considerably from 2015 to 2020.
“However, it is a highly fragmented with only a few US states accounting for most activity, namely California and Hawaii.”
Read more about the report.