The US energy storage market is growing rapidly due to recent policy changes. The Inflation Reduction Act, which was passed in August 2022, is providing more than $369 billion in funding for clean technologies. The act is allocating large volumes of funds to wind, solar and storage tax credits. According to the latest forecast from BloombergNEF (BNEF), energy storage installations around the world are projected to reach a cumulative 411 gigawatts by the end of 2030.1
Battery storage technologies have been around since the 1930s, but growing demand for clean energy solutions has increased interest in battery energy storage solutions in the United States. Energy storage currently makes up approximately 2% of U.S. generation capacity and is growing at an increasing rate.2
According to the U.S. Energy Information Administration, battery storage capacity more than tripled in 2021, from 1,438 MW to 4,631 MW. Markets for electrical energy storage are projected to reach $8.9 billion annually by 2026.3 Energy storage systems are a clean technology with no direct emissions that helps consumers save money and reduce their environmental impact.
1 Global Energy Storage Market to Grow 15-Fold by 2030, October 2022, https://about.bnef.com/blog/global-energy-storage-market-to-grow-15-fold-by-2030/
2 Energy Storage Association Frequently Asked Questions, https://energystorage.org/resources/thought-leadership/faqs/
3 US energy storage capacity tripled in 2021: EIA, July 2022, https://www.utilitydive.com/news/energy-storage-capacity-eia-2021-report/627028/
In response to this significant growth, contractors, building owners, and facility managers must understand commercial energy storage solutions to properly address their customer’s needs and respond with tailored solutions. Battery storage solutions cover a wide range of applications, from pure energy storage to solar + storage, backup power and microgrids.
Battery storage solutions speed up the replacement of fossil fuels with renewable energy. Battery storage enables renewable energy, such as solar and wind, to be stored and then discharged when the customers need power the most.
Building battery storage options into your solar projects can deliver immediate and long-term benefits for reliability and sustainability. Battery storage allows customers to have homes and businesses powered by green energy, even when the sun isn’t shining.
The ability to store excess energy allows consumers to optimize their use of the power generated by their solar systems. Energy storage provides backup power during outages for a more reliable power grid. Power outages can be disruptive and costly to businesses. Adding battery storage to your project can help avoid these disruptions and continue normal operations.
Battery storage allows energy to be accumulated during off-peak hours and discharged during peak periods with higher electricity rates, which helps ease the strain on the grid. It also saves consumers and businesses money on their utility bills.
Customers will reduce their peak demand and offset the load on the grid. This keeps energy costs down and reduces the likelihood of a grid failure. According to the Department of Energy, power outages cost as much as $200 billion annually. In times of outages, residential consumers can power necessary items, such as refrigerators and freezers to prevent losses from spoiled food.1
1 How much do power outages cost?, May 2022, https://news.energysage.com/how-much-do-power-outages-cost/
In some areas of the country, customers are charged demand rates which can become costly. Battery storage solutions are a great way to manage demand charges. Demand shaving is the process of managing overall demand to eliminate short-term energy spikes.
Demand shaving can balance power supply and demand by leveling out peaks in electricity use. Power can be stored for times when electricity demand and utility costs are highest or unavailable. A utility-scale storage system can store energy using various technologies, including lithium-ion flow batteries.
When modeling an energy storage solution, Wesco customers can work with their representatives to find the ideal energy storage system for their project. Wesco can help protect your business against time-variable rates and demand charges. New form-factors and packaging make it possible to scale battery storage to fit microgrids, smart buildings, and residences. New solutions ensure that the electricity generated and stored is later available during off-peak hours or when the sun isn’t shining.
Combining a solar system with energy storage technologies can maximize savings and reduce environmental impact.
Optimize utility bills
Increase operational efficiency and flexibility
Enhance energy resilience
Lower demand charges and operating expenses
Maximize solar and renewable ROI
Enable backup power
Mitigate power interruptions
Achieve sustainability goals
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