Published on: February 20, 2025 / update from: February 20, 2025 - Author: Konrad Wolfenstein
Market development of battery storage, commercial storage and large storage in the United States under the government of Donald Trump - creative image: Xpert.digital
Energy transition in reverse gear: What the change of government for battery storage means
Challenges and perspectives: The battery storage market in the USA under Donald Trump
The battery storage market in the United States is facing a uncertain future after the change of government under Donald Trump. While the industry under the government of Joe Biden was strongly promoted and received a significant upswing through comprehensive support programs such as the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, a significantly different picture is now emerging. Trump's energy policy agenda indicates that renewable energies and associated technologies such as battery storage could face major challenges.
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Possible negative effects on the battery storage market
1. Stopping funding for renewable energies
Donald Trump has stopped numerous payments from IRA and the Infrastructure Investment and Jobs Act by Executive Order "Unleashing American Energy". This applies to billions of investments in renewable energies and battery storage projects. Companies that rely on these funding could be forced to set or move planned projects. Start-ups and medium-sized companies would be particularly affected, which are often not competitive without government support.
2. Uncertainty about the future of inflation reduction act
Inflation Reduction Act (IRA) was the largest climate protection law in the United States so far and should ensure investments in renewable energies and battery technologies for years. However, Trump's energy policy U -turn creates great uncertainty for investors and companies. Without clear political support, a departure from long -term growth forecasts and a general investment restraint in this sector threatens.
3. focus on fossil fuels
Trump made it clear during his first term that he preferred fossil fuels. His policy aims to expand the promotion of oil, natural gas and coal. Measures such as tax reliefs for the oil and gas industry could deduct capital from renewable energies and battery storage. In addition, regulations that have so far restricted the fossil energy sector could be loosened or completely abolished, which means that renewable energies lose competitiveness.
4. Endangered investments and projects
Some states had rely on large funding for the expansion of renewable energies and storage systems. Projects worth several million or even billions of dollars are now at risk. California, New York and Texas, who have been committed to renewable energies in recent years, are particularly affected states. Local governments and companies now have to find alternative financing channels in order to implement planned projects.
5. Slowing market growth
Before the change of government, strong growth was predicted for the US battery storage market. By 2024, the capacity should increase to 6.4 GW and even 143 GW by 2030. These figures could now be revised because new investments fail and increase uncertainties. The market could develop more slowly than originally expected, which could result in the USA in this technology area behind countries such as China or the EU.
Positive factors that could still support growth
Despite the challenges, there are some factors that could continue to favor the growth of the battery storage market:
1. Projects already approved
Many loans and investments that have been approved under the bidet government cannot be reversed without further ado. Large supply companies and projects that have already started could continue to benefit from these means, even if there are no new funding.
2. federal initiatives
Some states pursue ambitious climate goals regardless of federal politics. California, for example, plans to reach a battery storage capacity of 16,400 MW by the end of 2024. Other countries such as New York and Massachusetts also rely on their own programs to promote the expansion of renewable energies. These initiatives could help compensate for the negative effects of national politics.
3. Economic advantages of battery storage
Regardless of political decisions, the economic advantages of battery stores are becoming increasingly clear. The costs for solar modules and battery stores decrease continuously, and companies and private households recognize the long -term savings potential. Many households are already investing in solar storage solutions to make themselves more independent of rising energy prices.
4. Support by both parties
Although Trump sees renewable energies critically, there has also been cross -party support for some measures in this area under his government. Some Republican politicians continue to support technologies such as battery storage, especially if they create economic advantages and new jobs in the United States.
5. Progress in storage technology
Technological development in the area of battery storage is progressing rapidly. New lithium iron phosphate batteries (LFP) and alternative storage solutions such as redox flow batteries or hydrogen storage could reduce the dependence on political support. More efficient and cheaper storage technologies could ensure that the market is growing without strong subsidies.
A change in the change
The battery storage market in the USA is about to change. While the Trump government is expected to pursue a policy that is rather slowing down renewable energies, there are still positive developments that could at least partially maintain market growth. It will be particularly crucial how states, companies and investors react to the new situation.
In the short term, it is likely to slow down the growth, but in the long term, economic and technological developments could ensure that battery storage continues to play a key role in the energy transition. The coming years will show whether the US battery storage market can assert itself despite political hurdles or whether it loses ground in international comparison.
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