Distributed Energy Storage Capacity Deployments for the Top 10 US Markets Are Expected to Increase Sixfold between 2020-2030
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
A new report from Guidehouse Insights examines the large and promising US state markets for distributed energy storage, providing an overview of market drivers, policies, and new projects in 10 leading states.
Recent technological and manufacturing advances have led to significant cost declines in distributed energy storage systems (DESSs) located behind the meter (BTM), creating 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, distributed energy storage is poised to take a leading role in the new energy paradigm shift. Click to tweet: According to a new report from @WeAreGHInsights, in 2020, the top 10 states for distributed energy storage are expected to reach 171.7 MW of DESS capacity. By 2029, these 10 states are projected to deploy 1,072.0 MW of DESS capacity, an approximately sixfold increase from 2020.
“The US distributed energy storage market has grown considerably from 2015 to 2020,” says Ricardo F. Rodriguez, research analyst with Guidehouse Insights. “However, it is a highly fragmented with only a few US states accounting for most activity, namely California and Hawaii.”
This trend is expected to change quickly over the next decade as new states implement energy storage targets and supportive policies, particularly Massachusetts and New York. Between 2020 and 2030, 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.
The report, Leading US States for Distributed Energy Storage, highlights large and promising state markets and explores the landscape of market drivers, policies, and new projects in each of the 10 leading states. This report provides forecasts for new distributed energy storage deployments for the top 10 US states and the country’s market in its entirety. This report also provides an update to US market forecasts considering recent changes, including the impact of the COVID-19 pandemic. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Leading US States for Distributed Energy Storage, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.