The outlook for the growth of the energy storage industry is very strong, much like the outlook for the solar industry. And while the two industries are distinct, the historical growth patterns of the two industries are quite similar. In the past ten years, solar had a compound annual growth rate of more than 60 percent. The energy storage market has also undergone substantial growth; 1,080 cumulative megawatt-hours were deployed between 2013 and 2017, according to GTM Research. This year alone will see more than 1,000 megawatt-hours of energy storage deployed.
In the U.S., the energy storage market grew 27 percent in 2017. That represents a total of 431 megawatt-hours of grid-connected storage installed. While front-of-the-meter deployments made up the majority of installations, behind-the-meter installations grew at an impressive pace. The behind-the-meter market grew 79 percent year-over-year, setting records in both residential and non-residential segments.
This growth is not expected to cool. GTM Research predicts that the U.S. energy storage market will be evaluated at $3.8 billion by 2023. That market valuation represents a more than tenfold increase in less than 10 years.