Sorry, you need to enable JavaScript to visit this website.
Skip to main content
Home
    • Contact Panasonic
    • Save Page
    • Home
    • Green Living
    • Trends & Technology
    • 3 Predictions for US Renewables and Storage Markets in 2025
    Back to Resource Center

    3 Predictions for US Renewables and Storage Markets in 2025

    • Contact us
      • Twitter
      • Facebook
      • Linkedin
      • Email
    Silhouette of a couple of friends breathing at sunset

    3 Predictions for US Renewables and Storage Markets in 2025

    info@greentechmedia.com

    As clean energy initiatives continue to trend upward, solar and battery storage installations (such as Panasonic's new EverVolt system) are increasing in kind. This article by GreenTech Media offers renewable predictions for the near future while Americans collectively move to reduce carbon emissions.

    With increasing climate change impacts and decades of power infrastructure neglect, we can lose sight of the extraordinary progress we are making with renewables and energy storage to build a clean energy future, healthier planet and more efficient grid.

    The U.S. has deployed more energy storage since the second half of 2018 than the total of all prior years. In 2020 alone, we expect total storage deployed to double again. By 2025, we will be well on our way to the clean energy future that we need.

    Based on our view of the industry, here are three aggressive predictions for where the U.S. energy market will be in 2025 — with some caveats about what it will take to get there. 

    1. A quarter of U.S. electricity generation will come from renewable sources, up from roughly 15 percent today.

    That assumes the U.S. will deploy as much non-hydro renewable generation in the next five years as the country has done in its entire history to date.

    solar power station

    New York recently announced its target of 100 percent carbon-free electricity by 2040, joining California, Colorado, Hawaii, Maine, New Jersey, New Mexico, Oregon and Washington in passing substantive clean energy targets. By 2025, we expect a majority of states to have passed laws setting a renewable energy target between 80 and 100 percent, and we predict some states will have significant renewables penetration, including 50 percent in California and Hawaii and 40 percent in New York. 

    With the cost of renewables coming down, even in states without targets, renewables will compete on price alone, further accelerating adoption.

    2. Battery storage deployments will reach 6,500 megawatts.

    Integrated battery storage is critical to reaching those renewables targets. As the grid reaches higher percentages of solar and wind, there is less and less alignment between the time of greatest net demand (i.e. late afternoon and evenings) and greatest solar energy production (i.e. midday).

    house-edit-storm-shutterstock_94169029_darksky.jpg

    Without energy storage, the excess solar energy produced during the day is wasted, requiring more fossil fuel-based power plants to meet the evening demand.

    This is why a federal, standalone energy storage investment tax credit (ITC) would be a gamechanger. With an ITC in place, energy storage deployments could rise 25 to 30 percent above current estimates, so by 2025, we could reach 6,500 megawatts (up from 647 megawatts today). About 1,500 megawatts of that growth (over 25 percent) would result from the storage ITC.

    By making batteries more affordable, the ITC will also lead to ubiquitous storage integration in new buildings and projects.

    solar panels and agriculture fields

    3. Demand for energy resilience will spread across the country as the effects of climate change become more acute.

    Given the severity of wildfires and the hardship of blackouts, California will be the first of many states to shift from centralized, one-way delivery of electricity to a decentralized, interactive model incorporating grid-tied distributed microgrids with islanding capabilities.

    An interactive, two-way decentralized grid will make businesses and homeowners more resilient while enhancing grid reliability and thus reducing the frequency of outages.

    Further, growth in deployment of renewables plus storage, along with continued digitalization and applications of Internet of Things platforms, will make the grid more efficient.

    "Grid-interactive buildings," based on energy storage and smart thermostats, will increase flexibility and reduce demand, responding to grid and price conditions for greater efficiency and reliability. Building codes will change to require more flexible capabilities. While California is leading this evolution with its Self-Generation Incentive Program (SGIP), Massachusetts is making progress with its Clean Peak Energy Standard and Connected Solutions programs.  

    Grass Growing on a Green Roof

    We believe the pain of climate change will spread across every other state over the next five years, leading to many more such programs. However, an additional incentive is the key to success for all these programs.

    California must lead in coming up with a policy framework that puts a value on resilience, so everyone knows how to invest in it and finance it. 

    3 keys to faster progress 

    We believe progress toward renewables and energy storage capacity will be faster than current estimates, but further accelerating progress requires three critical steps:

    1. Put a price on carbon. Creating policies that put a price on carbon will enable decarbonization of the grid without requiring every state to pass a renewable portfolio standard (RPS). Renewables will win on price alone. 
    2. Create a framework for assessing the value of resilience. This will enable increased investment in and financing for projects, creating a stronger market for the resilience solutions customers want. California is in the best position to create such a framework now, allowing other states to follow when ready.
    3. Pass the energy storage ITC. Legislation introduced into both houses of Congress will hopefully include the ITC in the next federal budget, which is expected to pass by early 2020. Call your representatives and insist they support this legislation. It is key to the clean energy future we want. 

    ***

     

    John Carrington is CEO of Stem Inc.

    This article was written by info@greentechmedia.com from Greentech Media and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

    Related Posts

    Businesswomen discussing by table in office
    Financial & Incentives

    How to accelerate solar adoption for the underserved

    As solar panels have become more affordable, there's no reason home solar has to be exclusive to upper income households.
    Learn more
    Caucasian family sitting in a teepee, reading stories with the flashlight in dark room with toys and pillows. Caucasian models. Home comfort, family, love, Christmas holidays, storytelling time.
    Homeowner Insights

    How Homeowners Can Prepare For Rolling Blackouts

    Common questions and answers about rolling blackouts and solar-powered homes.
    Learn more
    Older female farmer with granddaughter
    Sustainability & Environment

    Mayors unveil $60B plan to support Midwest energy transition

    As fossil fuel use continues to decline, Midwest officials want to build on the green movement foundation.
    Learn more
    Buildings & Roof Tops Of Bisbee, Arizona
    Trends & Technology

    A $100 million investment will fund the largest ‘virtual power plant’ in the U.S.

    Combining innovative thinking and technology, companies are redefining how energy can be saved, re-distributed and consumed more efficiently.
    Learn more
    Brush Fire Threatening Homes
    Trends & Technology

    Why are Home Batteries Becoming so Popular?

    More homeowners are choosing to install battery storage. Here are the reasons behind the growth.
    Learn more
    Happy mother talking to her baby while working at home. unpublished
    Financial & Incentives

    Financing Renewable Energy: It's Easier Than You Think

    As demand for home batteries surges, new financing options provide greater flexibility for homeowners.
    Learn more
    Foreman shows house design plans
    Homeowner Insights

    What to Expect During Your Solar Panel Installation

    Expert installers: Here's how we prepare your home for a successful solar installation.
    Learn more
    electric meter resize
    Homeowner Insights

    The Sun Is Shining and Your Meter Is Running Backwards

    When your solar panels generate more power than you consume, the utility company pays you for the surplus.
    Learn more
    woman at home using computer
    Homeowner Insights

    Home batteries keep you powered-up when the power goes out

    With more people working from home, maintaining an uninterrupted power supply is important for both work and play.
    Learn more
    A father and his children having their breakfast at home
    Financial & Incentives

    Here’s how much it would cost to move every home in the U.S. to zero-carbon energy

    Is it feasible to power every American household with emissions-free renewable energy?
    Learn more
    hand out to the sky
    Homeowner Insights

    Misconceptions About Solar Power

    Breaking down the fact and fiction of investing in a home solar system.
    Learn more
    Group of friends sitting in backyard on sunny summer evening
    Financial & Incentives

    Home Solar Incentives To Take Advantage of in 2020

    Thanks to generous federal and state tax credits, you can reduce your carbon footprint and your utility bill at the same time
    Learn more
    Back to Trends
     

    Thank you for your submission. A Panasonic representative will contact you.

    • About Us
    • News
    • Careers
    • Investor Relations
    • Social Impact
    • Contact Us
    • Do Not Sell My Data

    Get the Latest on Panasonic Trends

    Thanks for signing up!

    Connect with us

    • Twitter
    • Facebook
    • Linkedin
    • Instagram Link
    • Youtube

    Select Country/Language

    • United States - English
    • Canada - English
    • Canada - Français
    © 2020 Panasonic Corporation of North America. All Rights Reserved.
    • Privacy Policy
    • Cookie Policy
    • Terms
    • Panasonic Global
    • Consumer
    • Industrial
    Reviewed by Accessible 360
    Reviewed by Accessible 360