- What factors are driving the distributed energy storage market in the US?
- Which states will see the most distributed energy storage capacity built in the next 10 years?
- What are the most notable new energy storage projects in the US?
- Which states should project developers and vendors target for new projects?
- How has the COVID-19 pandemic affected the growth of energy storage in the US?
3Q 2020
Leading US States for Distributed Energy Storage
The US distributed energy storage market has grown considerably from 2015 to 2020. Technological and manufacturing advances have led to significant cost declines in distributed energy storage systems (DESSs) located behind the meter (BTM). These factors present major motivation for the technology’s rapid uptake. In addition, states experiencing the benefits and challenges associated with high renewable penetration have deployed DESSs to ease the integration of renewables while expanding the quality of service for ratepayers. 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.
However, the US market is highly fragmented with only a few US states accounting for most activity. New states are emerging with strong markets, but each state has varying market structures, regulations, economic applications for projects, and other considerations. Stakeholders must understand the differences among states in terms of market structure, utility processes, competitive landscape, and supportive policies.
This Guidehouse Insights report 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.
Pages
24
Tables | Charts | Figures
3
Key Questions Addressed
Who Needs This Report
- Energy Storage System Integrators
- Energy Storage Project Developers
- Wind Project Developers
- Solar Project Developers
- Independent Power Producers
- Utilities
- Engineering, procurement, and construction (EPC) firms
- Governments and energy regulatory agencies
- Investor community
Table Of Contents
Spark
Context
Recommendations
The US Distributed Energy Storage Market Increases Capacity
Several Key Factors Drive the Market’s Rapid Growth
Goals, Targets, and Mandates Drive Energy Storage in the US
Energy Storage Incentive Programs Secure Benefits for DESS Users
Net Energy Metering 2.0 and TOU Rate Affect Electricity Cost
The Leading US Markets for Distributed Energy Storage
Arizona Advances Legislation and Programs for DESS
California Leads the Energy Storage Market
Hawaii Accelerates DESSs with Multiple Programs
Maryland Innovates Ways to Use Energy Storage
Massachusetts Develops Energy Storage Standards and Targets
Nevada’s NV Energy Gives ESS Incentives
New Hampshire Initiates RPS with Legislation and Pilot Program
New York Expands Energy Storage Opportunities
Texas Begins to Make Way for DESSs
Vermont Creates Energy Standard Alongside Utility Innovation
New Developments Required for Other States to Catch Up
Interconnection Rules for Distributed Energy Storage Must Be Streamlined
Stakeholders Must Develop Wholesale Market Participation Models for DESSs
The Inclusion of DESSs to Energy Efficiency Programs Is Paramount
Stakeholders Must Value the Non-Energy Benefits of DESSs
List of Charts and Figures
- Annual Installed C&I Building Energy Storage Power Capacity by State, US: 2020-2029
- SGIP Storage Incentive Budgets
- Maryland Energy Storage Tax Credit Program: 2018-2019
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