US energy storage set a new record in Q1 2025
US energy storage set a Q1 record in 2025 with 2 GW added, but looming policy changes could put that growth at serious risk.
Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.
That makes Q1 2025 the biggest first quarter for energy storage in US history. The surge was led by utility-scale projects, which accounted for over 1.5 GW of the new capacity, a 57% jump compared to Q1 2024. Surging energy demand is putting the electric grid under strain,” said John Hensley, SVP of markets and policy analysis at ACP.
With developers continuing to add new capacity, including 9.2 GW of new lithium-ion battery storage capacity in 2024 through November 2024 and comparable levels of growth expected through the fourth quarter of 2024, energy storage investments and M&A activity are expected to continue this trajectory through 2025.
“The energy storage market is responding to help keep the lights on and support this unprecedented growth in an affordable and reliable way.” But that momentum is now bumping up against policy uncertainty that could derail growth in the near future. Energy storage is no longer limited to early-adopter states like California and Texas.
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