US Energy Storage Market Grew 243% in 2015, Largest Year on Record

The annual US energy storage market is projected to reach 1.7 gigawatts by 2020 — with a value of $2.5 billion.

BOSTON, Mass. (March 3, 2016) – The US energy storage market just had both its best quarter and best year of all time. According to the GTM Research/Energy Storage Association’s US Energy Storage Monitor 2015 Year in Review. First of all, the U.S. deploying 112 megawatts of energy storage capacity in the fourth quarter of 2015. Thereby bringing the annual total to 221 megawatts. This represents 161 megawatt-hours for the year.

US Energy storage market

It also seems that 112MW deploying in the fourth quarter 2015.  This represented more than the total of all storage deployments in 2013 and 2014 combined. All propelled by that historic quarter, the U.S. energy storage market grew 243 percent. 243 percent over 2014’s 65 megawatts (86 megawatt-hours).

FIGURE: Annual U.S. Energy Storage Deployments, 2012-2015
Source: GTM Research/ESA U.S. Energy Storage Monitor

The report breaks down the market into three segments: residential, non-residential and utility. The utility segment, also called front-of-meter, continues to be the bedrock of the U.S. energy storage market. In 2015, front-of-meter storage accounted for 85 percent of all deployments for the year. Most of these deployments were in the PJM market. That’s where over 160 megawatts of energy storage systems went on-line in 2015.

The residential and non-residential segments combine to make up the behind-the-meter market. While much smaller, behind-the-meter market grew 405 percent in 2015. The report notes that the residential market is geographically diverse but was led by Hawaii for the year. California led the non-residential segment.

So GTM research forecasts that the annual U.S. energy storage market will cross the 1-gigawatt mark in 2019. Furthermore and by 2020 it will be a 1.7-gigawatt market. This market is valued at $2.5 billion.

Today, most noteworthy, more utilities are considering storage more. That’s along with an assortment of traditional and non-traditional assets. All to therefore meet reliability, capacity and system upgrade needs. The recent extension of several federal renewable tax credits is expected to further boost energy storage as more storage paired with renewables will be deployed.

FIGURE: Annual U.S. Energy Storage Deployments, 2012-2020E
(http://www.greentechmedia.com/content/images/articles/storage-forecast-2015.png)
Source: GTM Research/ESA U.S. Energy Storage Monitor

Key Findings

1. The U.S. deployed 111.8 megawatts of energy storage in Q4 2015, which was higher than deployments in 2013 and 2014 combined.
2. The US deployed 221 megawatts of storage in 2015, up 243 percent over 2014.
3. Installed system prices for utility projects for energy applications to be completed in 2017 will be lower by 29 percent versus 2015, and for power applications, the prices will be lower by 25 percent.
4. GTM Research forecasts that the annual U.S. energy storage market will cross the 1-gigawatt mark in 2019. Also and by 2020 will be a 1.7 gigawatt market valued at $2.5 billion.
5. In conclusion and in 2015, front-of-meter storage accounted for 85 percent of all deployments for the year.
6. Finally, 20 state markets had energy storage policy activity in 2015, up from 10 states in 2014.

Written by greenlivingguy

The Green Living Guy, Seth Leitman is a green living expert, celebrity and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author, Radio Host, Reporter, Writer and a Environmental Consultant on green living. The Green Living Guy writes about green living, green lighting, the green guru guides and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke # Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power System by Brian Clark Howard and Kevin Shea # and more green living books to follow.