U.S. residential and C&I energy storage sectors experience tremendous growth

Residential and C&I energy storage installations in US saw a quadruple increase in the second quarter of the year, according to Reuters. Largely thanks to reduced battery system costs, growing application of energy storage in various end-user industries and incentives in Hawaii and California.

While the number of home and commercial storage installations is growing, there is a reduction in utility-scale deployments which experienced an upsurge after the 2015 gas leak in California. According to Reuters’ Nichola Groom, businesses rely on battery storage to reduce energy costs during peak hours, and for home owners batteries can provide backup power during times of power interruption.

In addition, the rising popularity of renewable energy sources coupled with energy storage systems are also contributing to grid stability, according to Forester Daily News. Many natural disasters lead to a power outage and that also plays a role in the increased interest for backup storage.

California is the leader of both the residential and the commercial energy storage markets, followed by Hawaii for the residential energy storage. Navigant Research predicts that the commercial and industrial energy storage alone, led by California, will grow from $968.4 million in 2016 to $10.8 billion in 2025.

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