U.S. Solar storage installation and investment hit record highs

Research shows that the Inflation Cutting Act and the Bipartisan Infrastructure Act mark an epochal shift in the U.S. clean energy policy landscape and herald a new era for the U.S. photovoltaic industry and energy storage industry.

In recent years, the United States has made substantial progress toward a renewable energy revolution, putting it on a path toward a more sustainable future. This shift is driven by a combination of factors, including environmental concerns, economic opportunities and technological advances.

With the introduction of the Inflation Cutting Act and the Bipartisan Infrastructure Act, the United States is accelerating its progress toward clean energy goals.

To illustrate this progress, some key statistics need to be understood: In 2022, renewable energy generation, including hydroelectric facilities, will account for 22% of total electricity generation in the United States. By 2030, the share of renewable energy power generation will increase to approximately 30%.

It is worth noting that in the transportation sector, consumers are also becoming more aware of this and they are increasingly choosing zero-emission fuel transportation (such as electric vehicles). According to estimates from EUPD Research, a research firm, pure electric vehicles (BEV) will account for 5.6% of new car sales in 2022, and by the first half of 2023, this share has soared to 7.1%.

The U.S. government has also set ambitious goals, including achieving 100% carbon-free electricity by 2035 and striving to achieve net-zero greenhouse gas emissions by 2050. These goals are expected to drive the U.S. clean energy industry to further strengthen its commitment to a sustainable and environmentally responsible future.

Markets are booming with the Inflation Cutting Act and the Bipartisan Infrastructure Act

The Inflation Cutting Act and the Bipartisan Infrastructure Act mark an epochal shift in the clean energy policy landscape and herald a new era for the U.S. photovoltaic and energy storage industries. The Inflation Cutting Act would provide significant resources to address the climate crisis, support domestic clean energy production, and solidify America’s leadership in clean energy manufacturing.

The U.S. Department of Energy said that since the two bills were introduced, the U.S. government plans to invest more than $120 billion in battery manufacturing and supply chains. In addition, plans were announced to build more than 200 new or expanded facilities dedicated to mining, materials processing and manufacturing. This is expected to create more than 75,000 potential jobs and strengthen the U.S. workforce.

According to data released by the U.S. Department of Energy, after the introduction of the Inflation Cutting Act and the Bipartisan Infrastructure Act, planned investments in the U.S. photovoltaic module manufacturing industry also increased significantly, reaching nearly $13 billion. In addition, industry players also announced the construction and expansion of 94 photovoltaic module manufacturing plants, which may create more than 25,000 jobs in the United States.

The U.S. photovoltaic industry is booming

In recent years, the U.S. photovoltaic industry has outpaced other energy sources (including wind power and natural gas) in terms of installed capacity growth. According to estimates from EUPD Research, the contribution of photovoltaic power generation to new global power generation shows a significant upward trend. This trend grew from 37% in 2019 to 38% in 2020, further to 44% in 2021 and an impressive 45% in 2022.

The installed capacity of PV systems in the United States has been growing steadily over the past few years, despite temporary setbacks in 2022 due to COVID-19-related delays, enforcement of trade regulations, supply chain disruptions and increased costs. . (U.S. installed photovoltaic system capacity in 2022 will be 21.1 GW, compared with 23.1 GW in 2021)

Figure 1 Renewable energy capacity installed in the United States from 2018 to 2022 

The installed capacity of photovoltaic systems in the United States is expected to achieve historic growth in 2023. According to EUPD Research's forecast for the U.S. photovoltaic market in 2023, if all planned utility-scale photovoltaic systems can be installed, the installed capacity is expected to reach 32 GW to 35 GW. In addition, between 2023 and 2028, new installed photovoltaic system capacity in the United States is expected to increase by approximately 233GW.

In terms of cumulative installed PV system capacity (utility scale + industrial and commercial + residential) across U.S. states, California tops the list, followed by Texas, Florida, North Carolina and Arizona state. Notably, Texas is rapidly expanding its installation of utility-scale photovoltaic systems and is expected to overtake California within the next two years.

The U.S. battery storage market is expanding rapidly

In recent years, battery energy storage systems have dominated the U.S. energy storage market and are expanding rapidly. Battery energy storage systems have seen a sharp rise in the proportion of energy storage systems deployed in the country, from 3% in 2017 to 36% in the first half of 2023.

Figure 2 Installed energy storage system capacity deployed in the United States from 2017 to 2030

In the United States, battery storage capacity growth has been dominated by utility-scale storage. The rise of intermittent renewable energy sources such as photovoltaics and wind power makes the deployment of utility-scale battery energy storage systems increasingly important. The U.S. Department of Energy has stated that most utility-scale battery energy storage systems will be co-located with photovoltaic systems and wind generation facilities in the United States.

According to estimates from EUPD Research, by the end of 2022, the cumulative deployment of utility-scale battery energy storage systems in the United States will be approximately 9GW/23.24GWh. Its forecast shows that by 2023, the United States is expected to deploy 9.6GW/26.4GWh of utility-scale battery energy storage systems, exceeding the scale of storage systems deployed in 2022.

In summary, the United States is on the cusp of an energy revolution, driven by ambitious goals and landmark legislation. The U.S. photovoltaic and energy storage industries are experiencing unprecedented growth, led by massive investment and a surge in installations. As industry leaders drive innovation and sustainability, the U.S. government works to meet its clean energy goals and reaffirms its commitment to a green future.