Which states are deploying more energy storage in Q1?

“We’re now seeing significant deployment in emerging markets like Indiana, while states across the Southwest like Nevada and Arizona continue to expand their energy storage portfolio,” said Noah Roberts, VP of Energy Storage at ACP. Residential storage also set a new record, with 458 MW installed in Q1, the most ever in a single quarter.

Why did energy storage surge in Q1 2025?

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.

Is energy storage at a crossroads?

The Q1 2025 results demonstrate the demand for energy storage in the US to serve a grid with both growing renewables and growing load,” said Allison Weis, global head of energy storage at Wood Mackenzie. “However, the industry stands at a crossroads, with potential policy changes threatening to disrupt this momentum.”

Can energy storage meet the needs of an evolving grid?

Overall, there is an immense opportunity for energy storage to meet the needs of an evolving grid, and it is well-positioned to do so with the existing tax credits and its declining cost curve.

Why is energy storage important?

Allison leads our global research into energy storage. The global energy storage market had a record-breaking 2024 and continues to see significant future growth and technological advancement. As countries across the globe seek to meet their energy transition goals, energy storage is critical to ensuring reliable and stable regional power markets.

What is the future of energy storage?

Renewable penetration and state policies supporting energy storage growth Grid-scale storage continues to dominate the US market, with ERCOT and CAISO making up nearly half of all grid-scale installations over the next five years.