Solar and Battery Storage to Account for Over 80 Percent of New Electric Generating Capacity This Year: EIA

The U.S. is expected to add 62.8 gigawatts of new utility scale power generating capacity in 2024, up 55 percent compared to 2023, which saw capacity increase by 40.4 GW, according to a Feb. 15 report from the U.S. Energy Information Administration. Solar and battery storage capacity are expected to account for 58 percent and 23 percent, respectively, of total new planned utility scale generation capacity additions, representing the largest share of new capacity in 2024.

U.S. battery storage capacity is expected to nearly double this  year as developers plan to add 14.3 GW to the existing 15.5 GW. Last year, new battery storage capacity rose by 6.4 GW, which represents an annual increase of 70 percent.

The agency projects new solar capacity to increase by 36.4 GW in 2024. If realized, this growth would be almost twice last year’s increase of 18.4 G W, which was a new high for yearly utility scale solar installation in the country. U.S. solar capacity has risen significantly since 2010, with the exemption of 2022 when solar additions fell by 23 percent year on year in 2022 due to supply chain interruptions and other COVID-19 associated challenges, according to the agency. Texas (35 percent), California (10 percent) and Florida (6 percent) are expected to account for more than half of the new utility scale solar capacity.

Texas and California are expected to account for 82 percent of the new U.S. battery storage capacity. Texas is expected to add 6.4 GW, while California is projected at 5.2 GW of new battery storage capacity. The demand for battery storage continues to rise, in line with higher solar and wind capacity across the U.S. The ability to store electricity during lower demand periods and utilized during peak periods, will help reduce price volatility and ensure security of supply. The 2022 Inflation Reduction Act has incentivized the expansion of energy storage by introducing investment tax credits for stand-alone storage.

New wind, natural gas, and nuclear capacity additions are expected to be 8.2 GW, 2.5 GW and 1.1 GW, respectively during 2024. Wind capacity additions are expected to be slower in 2024, compared to 2020 and 2021 which saw increases of more than 14 GW.