U.S. Storage Market Sets New Installation Record In Q3 2021
December 12, 2021
by Paul Ciampoli
APPA News Director
December 12, 2021
The U.S. energy storage market set a new record in the third quarter of 2021, with new system installations totaling 3,515 megawatt hours (MWh).
Wood Mackenzie and the Energy Storage Association’s latest U.S. Energy Storage Monitor report, released Dec. 9, said with market momentum building, it is likely this storage market record will be broken in the fourth quarter.
In addition, an expected solar investment tax credit (ITC) extension, standalone storage ITC, and a California solar and storage mandate are all assumed in the forecast for the first time this quarter, significantly increasing forecast storage deployment.
The third quarter saw the utility-scale front-of-the-meter (FTM) market deploy 998 MW/3198 MWh, with California, Texas and Arizona leading the segment.
California continued to lead in FTM project deployment, with a trio of projects developed by NextEra Energy Resources near Blythe contributing the majority of the MW for the quarter. Storage projects in Texas developed by Broad Reach Power also boosted third quarter FTM capacity.
Installations increased slightly in the residential market as attachment rates continue to rise, with another 97.9 MW/225 MWh of new residential storage brought online in the quarter.
But project timelines for residential solar-plus-storage remain problematic, with solar module and battery constraints among the challenges contributing to project backlogs. However, vendors and installers managed to increase residential storage deployment over the second quarter.
The non-residential market recorded its best quarter of 2021 so far, with 43.6 MW/92.1 MWh deployed.
Commercial virtual net metered and community solar projects with storage attached contributed most of the non-residential capacity in the third quarter, with most behind-the-meter non-residential projects sited in California.