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US Commissioned Over 70 New Clean Energy Manufacturing Facilities in 2025: Report

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					</table>The U.S. brought online over 70 new domestic clean energy component manufacturing facilities in 2025, according to a report by the <a href="https://cleanpower.org/" target="_blank" rel="noopener">American Clean Power</a>.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-95486 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1.png" alt="" width="752" height="311" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1-300x124.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1-650x269.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1-624x258.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian1-600x248.png 600w" sizes="auto, (max-width: 752px) 100vw, 752px" /></a>
Source: American Clean Power
Of these, over 55 manufacture primary supply chain components for the renewable energy sector.
In the first three months of 2026, the U.S. added 10 manufacturing facilities, half of which produce primary components.
Cumulatively, the U.S. has added over 825 domestic clean energy component manufacturing facilities across all 50 states, with large clusters in Texas, Tennessee, Georgia, Ohio, and North Carolina.
More than 300 U.S. factories are producing the core components of clean energy projects, including wind blades, towers, nacelles, solar modules, and batteries.
In the last five years, the number of such facilities has surged by 37%, with growth projected to reach nearly 50% by the end of the decade.
The report stated that U.S. domestic manufacturing capacity has expanded to produce solar and battery storage systems to meet domestic demand, and that the U.S. continues to lead in wind nacelle and tower manufacturing.
The rapid growth in the domestic manufacturing sector also led to a 33% decline in solar imports and a 10% decline in storage imports from last year.
By 2030, the report projects that the U.S. will be able to meet the demand from the critical battery storage supply chain domestically.
The clean power manufacturing sector contributed $31 billion to the U.S. GDP annually and supported the growth of 215,000 jobs.  The construction of these facilities also supported 207,000 jobs.
Clean energy factory workers earn 35% more than the average American worker.
By 2030, over 950 manufacturing facilities are expected to support 374,000 jobs and contribute $55 billion to the GDP.
Solar Manufacturing
Nearly 30 new utility-scale solar manufacturing facilities started production in 2025. Solar tracker and inverter production represented the majority of the other new facilities.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-95488 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2.png" alt="" width="752" height="344" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2-300x137.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2-650x297.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2-624x285.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/amercian2-600x274.png 600w" sizes="auto, (max-width: 752px) 100vw, 752px" /></a>
Source: American Clean Power
In 2025, more than 140 facilities across 30 states produced primary components such as modules, cells, ingots, and wafers, as well as trackers and racking systems.
Over the past five years, the number of operational solar primary-component manufacturing plants in the U.S. has grown by nearly 150%.
Module manufacturers commissioned 15 GW of new capacity, bringing total annual capacity to 63 GW/year. By the end of the decade, total module capability is expected to exceed 85 GW/year.
The report said that C-Si module production using domestic cells, combined with domestic thin-film capacity, could meet annual solar demand by 2027.
If all planned facilities reach full capacity, domestic supply could cover 50% of c-Si module manufacturing demand.
The anticipated ingot and wafer capabilities will more than double by the end of the decade. However, they will still be less than domestically manufactured cell demand and even less than total solar demand.
The nearly 70 online tracker and racking component manufacturing facilities are spread across 25 states.
According to the report, there are over 50 additional manufacturing sites in 20 states that are either under construction or announced across the solar supply chain. Of these sites, 40 are manufacturing primary solar components.
Solar Imports
In 2025, solar imports were down an estimated 33% from 2024 levels, driven by ongoing antidumping and countervailing duty (AD/CVD) investigations and the onshoring of domestic manufacturing.
In March 2026, the Office of the United States Trade Representative <a href="https://www.mercomindia.com/indian-manufacturing-solar-modules-face-us-section-301-probe" target="_blank" rel="noopener">initiated</a> a Section 301 investigation into structural excess capacity and production in manufacturing, with India among the economies under review.
Domestic manufacturing capacity for thin-film solar modules met the bulk of installation demand in 2025, with the remainder covered by imports from India and Southeast Asia.
American c-Si module manufacturing capacity in 2025 met more than half of the installation demand. Southeast Asian imports supplied most of the demand unmet by domestic capacity.
Nascent U.S. cell manufacturing is estimated to meet about 1% of manufacturing demand in 2025, with Southeast Asia and Korea serving as the largest cell suppliers to the growing domestic module manufacturing demand.
Solar inverters are sourced globally, with the most substantial volume coming from Southeast Asia, the EU, and Japan. It is estimated that over one-sixth of solar inverters were sourced domestically in 2025. Developers are actively seeking to increase the share of domestic inverters in 2026 and beyond.
Battery Manufacturing
In the U.S., more than 30 new battery manufacturing facilities came online in 2025, pushing the industry to over 140 facilities. Of these, more than 80 facilities in 28 states produce primary components for the BESS supply chain.
The U.S. <a href="https://www.mercomindia.com/us-adds-record-9-7-gwh-of-energy-storage-capacity-in-q1-2026-report" target="_blank" rel="noopener">added</a> a record 9.7 GWh of energy storage capacity in the first quarter of 2026, up 32% year-over-year, according to a joint report by Solar Energy Industries Association and Benchmark Mineral Intelligence.
As of 2025, seven BESS systems and integrated storage system manufacturing facilities were online, with three more expected by the end of 2026.
The U.S. now has a cumulative capacity of 75 GWh/year for LFP module and battery system manufacturing. Expansion of operational battery manufacturing facilities could push the total over 95 GWh, with the potential to exceed 150 GWh/year if all announced facilities are commissioned by the end of 2026.
Additionally, the U.S. now has a production capacity of over 28 GWh/year of processed lithium carbonate.
The report anticipates that at least five announced lithium extraction projects could add 140,000 metric tons of lithium carbonate equivalent to the domestic landscape by 2030. The cumulative processed graphite capacity is expected to exceed 120 GWh/year by the end of the decade.
In 2025, the U.S. also met over one-third of demand with domestic inverters and is expected to meet installation needs by 2030.
There are over 100 additional sites across 28 states that are either planned or under construction.
Battery module, cell, and processed lithium capacity could fulfill demand by year-end 2026. Domestic active anode material and processed graphite could meet storage demand as early as 2028.
However, the cathode active material capacity is projected to meet less than 7% of demand by 2030.
Wind
Over $25 billion has been invested in the offshore wind supply chain, including ports, vessels, and staging facilities.
Six offshore wind vessels were placed in service in 2025, with another five vessels under construction. Each vessel represents an average investment of $155 million.
Domestically manufactured or refurbished offshore wind vessels now total over 30.
The success of new plate manufacturing marks the start of an even larger opportunity to expand steel fabrication in the country. If all potential offshore wind capacity comes online by 2040, it would create a demand for 1.6 million tons of steel per year, one-third of the entire U.S. energy sector’s steel requirement.
Employment
In 2025, operating clean energy manufacturing facilities generated almost $16 billion in earnings, representing over $61 billion in spending across the U.S. economy.
Among domestic clean energy impacts, the solar supply chain represents almost 50% of total employment. Clean energy manufacturing directly employs 50,000 workers.
Jobs associated with the operation and maintenance of online clean energy manufacturing facilities offered salaries about 36% above the national average.
The construction of new or expanded clean energy manufacturing facilities in 2025 supported 207,000 jobs. If they materialize, manufacturing facilities that have been announced but have not begun construction would add another 107,100 jobs.
If all under-construction and expected clean power manufacturing facilities come online, the total industry would support almost 373,000 jobs, 70% more than the existing 215,000 jobs.
Together, they would generate almost $28 billion in earnings, contribute $55 billion to GDP, and represent over $107 billion in spending across the U.S. economy.

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					</table>The U.S. energy storage market achieved its strongest ever quarter in the second quarter (Q2) of the financial year 2025, with total installations reaching 5.6 GW/17.8 GWh, according to the latest U.S. Energy Storage Monitor report from the <a href="https://cleanpower.org/" target="_blank" rel="noopener">American Clean Power Association</a> and <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>.
The utility-scale segment accounted for 4.9 GW/15 GWh of this total, a 63% year-on-year increase. Texas, California, and Arizona together contributed nearly 75% of this newly installed capacity, each adding around 1.2 GW.
Oklahoma re-entered the utility-scale market with three projects totaling 170 MW, while the national project pipeline has seen some contraction, falling from 1,080 projects in 2024 to 801 in 2025, a 26% decline.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture1-4.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-84935 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture1-4.png" alt="Quarterly Storage deployments" width="620" height="531" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture1-4.png 620w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture1-4-300x257.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture1-4-600x514.png 600w" sizes="auto, (max-width: 620px) 100vw, 620px" /></a>
Installations for the residential storage sector increased by 8% quarter-on-quarter, with California, Arizona, and Illinois driving the majority of the growth. The rise is largely attributed to state-level policies such as California’s Net Billing Tariff, declining solar export rates, and additional state incentives in California, Arizona, and Illinois.
Higher-capacity systems are increasingly being adopted in the residential market, which is projected to outpace solar in growth due to high policy resilience, strong attachment rates in markets such as California and Puerto Rico, and continued access to the federal investment tax credit (ITC), particularly under third-party ownership models.
For 2025 alone, residential storage growth is forecast to reach 96% in terms of megawatts and 41% in terms of the number of installations.
CCI Market Gains Momentum
The community, commercial, and industrial (CCI) market posted its best second quarter since 2023, driven by commercial solar-plus-storage deployments in California under the state’s Net Energy Metering 3.0 framework.
Storage incentive programs in New York, Illinois, and Massachusetts are also contributing to steady growth, although community storage remains limited due to high development costs and policy constraints.
Massachusetts’ upcoming SMART 3.0 program is expected to provide future support, though nationwide CCI capacity is projected to remain under 1 GW by 2029.
OBBBA and Federal Policy
Federal policy developments under the One Big Beautiful Bill Act (OBBBA) have preserved ITC benefits for most storage applications but introduced new equipment sourcing requirements that take effect after 2025.
This has led to a rush to begin project construction ahead of the restrictions, temporarily boosting forecasts according to the report. While domestic cell supply is expected to ramp up, supply chain limitations and U.S.–China trade barriers are likely to create challenges.
Distributed storage remains highly sensitive to OBBBA impacts, with the CCI sector potentially benefiting from reduced solar incentives, which could lead to an increase in solar-plus-storage installations. However, growth is expected to remain slow. For residential storage, the decline in solar incentives may accelerate the adoption of virtual power plants and third-party ownership models.
Low Case Forecast and Risks
The low-case scenario forecasts a potential reduction of 16.5 GW, or 19%, in cumulative installations between 2025 and 2029, driven by risks including supply shortages compliant with the Foreign Entity of Concern (FEOC) rule, sustained trade barriers with China, and delays in federal land permitting for renewable projects.
In this downside case, utility-scale projects would be most affected, particularly those not safe-harbored in 2025. Residential forecasts would be constrained by uncertainty around FEOC-compliant supply and potential restrictions on third-party ownership qualification for the ITC.
The CCI sector would face further headwinds if the rollout of Massachusetts’ SMART 3.0 program is slow, and costs remain high.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture2-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-84936 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture2-2.png" alt="Annual storage capacity additions: low case" width="552" height="492" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture2-2.png 552w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture2-2-300x267.png 300w" sizes="auto, (max-width: 552px) 100vw, 552px" /></a>
However, the report notes that the final version of OBBBA was less restrictive than the House bill, which had proposed a 60-day construction start window and a 2028 in-service deadline to qualify for the ITC.
As a result, the low-case outlook was raised by 23% quarter-on-quarter compared to the earlier baseline, which had assumed the stricter House version would pass.
Beyond the 2025–2029 outlook period, downside risks remain if gas supply chain bottlenecks ease and permitting restrictions increase for solar and storage projects. These conditions could slow the pace of deployment in the longer term.
Financial and Market Implications
The scale of Q2 2025 installations underscores the growing importance of storage as a vital component of the U.S. energy transition. With 7.6 GW installed in the first half of 2025, the year is expected to set a new annual record for storage deployment.
While policy and supply chain challenges persist, particularly in terms of equipment sourcing requirements and federal permitting, the resilience of the residential market and the dominance of leading states such as California, Texas, and Arizona position the U.S. storage sector for continued growth.
The utility-scale market remains vulnerable to policy and trade uncertainty; however, the extension of the ITC provides a foundation for sustained development over the next decade.
Residential and distributed storage are increasingly adapting through models such as virtual power plants and third-party ownership, ensuring continued deployment even as solar incentives decline.
The CCI segment, though lagging, is likely to see incremental growth supported by state-level incentive programs and the eventual rollout of SMART 3.0 in Massachusetts.
Overall, the report underscores both the opportunities and challenges facing the U.S. storage market. Strong near-term growth is balanced by risks of supply shortages and policy headwinds, but the cumulative capacity of nearly 88 GW by 2029 remains achievable under the base case.
Outlook
The report projects that cumulative U.S. energy storage capacity will reach 87.8 GW/261.2 GWh by 2029, with growth led by residential and utility-scale storage. Utility-scale capacity is forecast to reach 72 GW/259 GWh by 2029 despite a projected 10% year-on-year decline in 2027.
After 2025, which is expected to remain the record year for utility-scale installations, annual deployments are not expected to reach similar levels until 2029. Federal policy will continue to be a significant factor in shaping the outlook.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-84937 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture3.png" alt="Annual and cumulative market outlook" width="643" height="497" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture3.png 643w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture3-300x232.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture3-624x482.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/09/Picture3-600x464.png 600w" sizes="auto, (max-width: 643px) 100vw, 643px" /></a>
While the ITC has been extended through 2033, new equipment sourcing requirements and continued uncertainty in global trade are expected to slow growth. The strongest markets for utility-scale deployment will continue to be California, Texas, and other states with favorable storage policies, coupled with high load growth.
The residential segment is expected to remain the most resilient, with growth supported by virtual power plant models and third-party ownership structures, even as solar incentives decline.
The CCI segment is forecasted to experience gradual growth, although the sector will face challenges from high costs and slower transitions to programs that reduce support for solar projects.
The U.S. energy storage market <a href="https://www.mercomindia.com/us-energy-storage-hits-new-q1-record-with-over-2-gw-installed" target="_blank" rel="noopener">added</a> more than 2 GW across all segments in the first quarter of 2025, marking the highest Q1 on record, according to U.S. Energy Storage Monitor report from the American Clean Power Association and Wood Mackenzie.

US Energy Storage Installations Hit 5.6 GW in Q2 2025

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					</table>The U.S. energy storage market added more than 2 GW across all segments in the first quarter (Q1) of 2025, marking the highest Q1 on record, according to the latest U.S. Energy Storage Monitor report from the <a href="https://cleanpower.org/" target="_blank" rel="noopener">American Clean Power Association</a> and <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>.
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The utility-scale energy storage market added 1,558 MW of capacity in Q1 2025, a 57% year-over-year (YoY) increase. Deployments rose 33% to 4,078 MWh from 3,056 MWh in the same period of the previous year.
California led with 457 MW of installed capacity, followed by Indiana with 256 MW. Arizona and Texas added 255 MW each, and Nevada 200 MW. Texas led this quarter in terms of project count with eight projects installed, followed by California, where the biggest project, with 240 MW of capacity, was brought online.
Residential energy storage posted the highest relative growth across all segments. Installed power capacity <a href="https://www.mercomindia.com/us-energy-storage-market-deployed-in-q1-2024-up-89-yoy" target="_blank" rel="noopener">rose</a> 82% to 458 MW in Q1 2025 from 252 MW in Q1 2024. Energy capacity grew to 893 MWh from 516 MWh, a 73% YoY increase. The residential segment continued to grow with expansion in the California and Puerto Rico markets. These two markets contributed 74% to the overall growth.
Illinois emerged as a new market with net billing, although attachment rates have not yet reached the anticipated levels. Like with other segments, there are continued efforts across the country to take advantage of existing tax credits this year while they remain available.
The commercial, community, and industrial (CCI) segment also recorded gains. Power capacity additions increased to 26 MW in Q1 2025, up from 19 MW in Q1 2024, representing a 33% jump. Energy capacity additions increased by 6%, rising to 63 MWh from 59 MWh over the same period.
The California CCI sector is struggling as the state faces challenges from the slow adoption of NEM 3.0 projects. Additionally, the limited number of new community storage projects this quarter hindered growth in the segment.
A key growth driver in this quarter was the decline in system costs. The average price of utility-scale battery systems fell to $874/kW in Q1 2025, down from $1,165/kW in Q1 2024. This represents a 25% reduction, which has helped improve the economics of storage projects and broadened deployment across market segments.
The pipeline for future utility-scale projects also expanded. By the end of Q1 2025, the total utility-scale segment pipeline stood at 603 GW. This pipeline includes 127 GW of projects in Wood Mackenzie&#8217;s database and 476 GW in interconnection queues. The total represents a 12% increase from Q1 2024, which had a pipeline of 538 GW.
Outlook
Across all segments, 15.2 GW/48.7 GWh of capacity will be added in 2025. In the near term, all segments of the energy storage market are expected to face policy-related challenges. Despite this issue, cumulative installations are projected to reach 79.8 GW and 289.4 GWh.
This year is on track to set new records for utility-scale storage, with a 22% YoY anticipated growth rate. However, political uncertainty is likely to dampen progress in 2026, with the utility-scale segment expected to decline by 29% compared to 2025.
Throughout Q1 and Q2, fluctuating tariff rates have restricted battery procurement from China. Unless there are changes to the Investment Tax Credit (ITC) or Section 45X, the market is forecast to rebound in 2028 and 2029.
Over the next five years, cumulative installations are expected to match earlier projections despite short-term volatility. Long-term demand is driven by strong interest in renewables from hyperscalers, capacity constraints in independent system operators, and state-level targets.
The residential storage market is set to expand by 45% in 2025. This growth will be supported by stabilized tariffs, continued price declines, and program expansions. The net billing transition in select regions will also contribute to higher adoption rates.
Growth in the CCI segment remains limited. Lower-than-expected uptake in California, along with ongoing uncertainty surrounding tariffs and policy measures, has slowed momentum. The segment continues to face difficulties due to the complexity of applications and weak project economics. Any further reduction in tax credit availability could place additional pressure on its growth trajectory.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81232 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png" alt="Woodmac 2" width="648" height="511" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1.png 648w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-300x237.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-624x492.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Woodmac-2-1-600x473.png 600w" sizes="auto, (max-width: 648px) 100vw, 648px" /></a>
House Reconciliation Bill Impact
Provisions in the House reconciliation bill are expected to <a href="https://www.mercomindia.com/us-senate-budget-bill-proposes-to-slash-solar-wind-incentives-from-2026" target="_blank" rel="noopener">impact</a> the energy storage sector. The projected range of possible outcomes over the next five years spans a 29.5 GW difference between the high and low scenarios.
In the high case, an additional 8 GW of storage capacity would be deployed over the next five years. This outlook assumes that federal clean energy tax credits remain in place, no new tariffs are introduced under the Trump administration, and that renewables paired with storage are actively used to meet growing electricity demand. The high case also assumes improvements in financing conditions and fewer interconnection delays.
The low-case forecast predicts a 27% decline in total installations from 2025 through 2029. This scenario assumes that the reconciliation bill passes in its final form in the House of Representatives. Under these conditions, projects would be required to begin construction within sixty days of the bill&#8217;s passage and be operational by the end of 2028.
The sudden end of the ITC would lead to widespread cancellations as developers struggle to qualify and financial institutions grow increasingly risk-averse. The low case also expects continued trade friction between the U.S. and China, with tariffs remaining volatile through 2026. These conditions would likely drive up system prices and create further procurement delays. For the residential sector, the assumption is that the tax credit under Section 25D would expire after 2025, including for leased systems.

US Energy Storage Hits New Q1 Record with Over 2 GW Installed

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					</table>The U.S. energy storage market set a first-quarter record for capacity installed in Q1 2024, with 1,265 MW/3,512 MWh deployed across all segments. This marks the highest storage capacity installed in the U.S. in the first quarter, representing an 89% increase from Q1 2023.
In Q1, 993 MW/2,952 MWh of energy storage capacity was deployed in the grid-scale segment, up 101% year-over-year, with Nevada, Texas, and California accounting for 90% of the MW and MWh capacity, according to the latest report by <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a>.
This represents the largest capacity installed in any Q1 to date. Additionally, more than 250 MW of residential storage was deployed in Q1, up 8% from Q4 2023.
California was the primary driver of this growth, adding 32 MW. California also led the commercial and industrial (C&amp;I) segment, while New York and Massachusetts experienced one of their slowest C&amp;I quarters in recent years.
<img loading="lazy" decoding="async" class="aligncenter wp-image-67360 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2.png" alt="" width="815" height="640" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2.png 815w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2-300x236.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2-768x603.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2-650x510.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2-624x490.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture1-2-600x471.png 600w" sizes="auto, (max-width: 815px) 100vw, 815px" />
The report mentioned that U.S. original equipment manufacturers (OEMs) are benefiting from new domestic content guidance and Section 301 tariffs. Storage prices from the cell to block level continue to decline due to lithium price drops and other factors in China, such as oversupply and intense competition.
OEMs and integrators were boosted by the recently released domestic content guidance, which altered the reporting structure to qualify for the 10% adder. This change allows developers to be eligible without including manufacturing costs from the OEM directly.
<img loading="lazy" decoding="async" class="aligncenter wp-image-67361 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture2-1.png" alt="" width="752" height="422" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture2-1.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture2-1-300x168.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture2-1-650x365.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture2-1-624x350.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture2-1-600x337.png 600w" sizes="auto, (max-width: 752px) 100vw, 752px" />
Nevada and Texas installed 38% and 35% of total Q1 capacity, respectively. However, in terms of MWh, Texas installed only 553 MWh, while Nevada saw 1,416 MWh installed. Texas led Q1 with 12 different storage projects, followed by California with 9.
The residential segment is growing quickly as the California market continues to expand. California tripled its number of installs between Q1 2023 and Q1 2024. With Q1 attachment rates at 41%, there is still much room for growth. High interest rates continue to affect the residential segment, increasing the share of third-party ownership installations.
C&amp;I Segment Deployment Drops 
The C&amp;I segment had its worst quarterly deployment numbers in years. California&#8217;s commercial and industrial (C&amp;I) storage deployments have remained stagnant, with most systems being interconnected under NEM 2.0.
New York and Massachusetts each had down quarters, which is not concerning given the C&amp;I segment&#8217;s low quarterly number of installations. More projects are expected to come online in 2024 and 2025.
New capacity additions in 2024 are expected to surpass the 10 GW mark for the first time, with 75 GW forecasted across all segments through 2028.
<img loading="lazy" decoding="async" class="aligncenter wp-image-67362 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture3.png" alt="" width="648" height="512" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture3.png 648w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture3-300x237.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture3-624x493.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/Picture3-600x474.png 600w" sizes="auto, (max-width: 648px) 100vw, 648px" />
2024 Forecast
In 2024, a capacity of 12.9 GW/35.8 GWh is expected to be deployed across all segments. The five-year grid-scale forecast increased by 5% quarter-over-quarter (QOQ) in MW terms due to an increased pipeline of announced projects.
This brings the cumulative new additions through 2028 to 62.2 GW. Over the next five years, over 10 GW of residential storage deployments are anticipated. The five-year residential forecast rose by 8% QoQ, largely due to declining system costs and emerging value streams in residential storage.
The five-year C&amp;I forecast was reduced by 34% following the California Public Utilities Commission&#8217;s (<a href="https://www.cpuc.ca.gov/" target="_blank" rel="noopener">CPUC</a>) decision on community solar in May.
The report said the grid-scale segment is projected to see a 45% year-over-year increase with 11.1 GW/31.6 GWh installed, bringing the total cumulative volume to 62.6 GW/219 GWh in the next five years.
Growth is expected to flatten in 2025 and 2026 as project capacity is pushed into the later years of the forecast, largely due to early-stage development challenges such as permitting and siting, and interconnection queue timelines.
Over the next five years, 13 GW of distributed storage will be deployed, with the residential segment constituting 79% of distributed power capacity installations. The residential segment will install 10 GW of storage between 2024 and 2028 as storage becomes cheaper, the value of mid-day solar exports decreases, and new value-add opportunities emerge for distributed storage.
The report has forecasted that the C&amp;I segment will install 2.6 GW of storage between 2024 and 2028, a 34% reduction from Wood Mackenzie&#8217;s previous forecast. The C&amp;I segment continues to face the highest barriers to growth in the near term, but its strong value proposition and emerging value streams will make it an exciting growth segment in the later years of our ten-year forecast.
Wood Mackenzie and the American Clean Power Association <a href="https://www.mercomindia.com/us-energy-storage-with-8-7-gw-nearly-doubling-2023" target="_blank" rel="noopener">reported</a> breakneck growth for the U.S. energy market in 2023, shattering previous installation records across multiple segments, adding 8.7 GW of energy storage capacity.
A recent report by the International Energy Agency said energy storage infrastructure must <a href="https://www.mercomindia.com/energy-storage-must-expand-six-fold-enable-renewables" target="_blank" rel="noopener">expand</a> by at least six times the current capacity if the world wants to triple renewables capacity by 2030 while maintaining electricity security.

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