U.S. grid energy storage installations quadrupled in the first quarter of 2022 compared to the first quarter of 2021, setting a new record. Grid-scale energy storage installations total 2,399 MWh, according to the latest edition of the U.S. Energy Storage Monitor, published by Wood Mackenzie and the American Clean Energy Council (ACP).
The record growth was achieved despite significant challenges for the industry. These risks remain, including supply chain disruptions caused by the anti-dumping and countervailing duty (AD/CVD) solar tariff investigation initiated by the U.S. Department of Commerce (DOC), which said at the time that it was investigating Anti-dumping investigations have been launched on solar panels produced by Chinese companies in Vietnam.
“The government’s recent decision to suspend AD/CVD solar tariffs for two years has restored predictability in the solar and energy storage markets. As more than 50% of utility storage projects are combined with solar power plants,” ACP said , this important administrative action will help the energy storage market continue to accelerate. "
The residential storage market is also growing, with its strongest quarter to date, amid falling battery costs and the need for resilience from grid fluctuations. The report estimated that 334 MWh of capacity was installed in the first quarter, up from a record 283 MWh in the fourth quarter of last year. The residential energy storage segment is projected to grow at a rate of 5.7 GWh per year through 2026, driven in part by the California government’s decision to adopt the proposed Net Energy Metering (NEM) 3.0 plan.
Overall, the U.S. energy storage market added 955 MW and 2,875 MWh across all sectors in the first quarter of 2022.
California continued to dominate the field, with the Valley Center and Slate projects taking the top two spots for the most installed projects in the first quarter. Outside of the top 7 states, more than 90 MW of energy storage projects came online, including projects in Oregon and Alaska.
