United States energy storage revenue analysis 2023

This report assesses the near-term revenue potential of new-build energy storage systems (ESS) located in the two US regions with the highest installation projections through 2032: California and Texas. We also provide analysis of key revenue streams in other regions for both context and support. ESS revenue opportunities vary widely from project to project, even within the same geographic region. This report sets a short-term baseline for expected storage earnings in 2023/2024. The outlined revenues present a fair market assessment of the CAISO and ERCOT markets, though it is likely that certain storage assets will exceed these values while others may fall short. In addition to the revenue assessment, the report attempts to qualify the changes expected in future storage earnings as policies change, the market matures, and more storage installations come online.