US Advanced ESS Market Trends — Includes hybrid storage, recycling, and long-duration storage.

The US AESS market is shaped by a number of powerful and interrelated trends that are accelerating its growth and defining its future.

Declining Costs: The most important trend is the continuous decline in the cost of lithium-ion batteries. This has made energy storage a cost-effective solution for a variety of applications, from grid-scale storage to residential use.

Shift to Long-Duration Storage: While lithium-ion batteries are excellent for short-duration storage, there is a growing trend toward developing and deploying long-duration energy storage (LDES) technologies. LDES can store energy for 10 hours or more, which is crucial for integrating a higher percentage of renewables onto the grid and ensuring a stable power supply during periods of low wind or solar generation.

Supportive Policies and Incentives: A number of states and federal agencies are providing strong policy support and financial incentives for energy storage. These policies, which include investment tax credits and capacity markets, are a key driver of market growth.

Grid Services: Energy storage is no longer just a way to store energy; it is an active participant in the grid. Storage systems can provide a variety of services, such as frequency regulation and voltage support, which help to stabilize the grid and improve its reliability.