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May 31, 2024

Contributed by Elena Zong, Associate Industry Analyst, Bitech Technologies

Executive Summary

Battery Energy Storage Systems (BESS) have experienced significant growth in the United States, driven by the integration of renewable energy, the need for grid stability, and various economic and policy incentives. BESS installations “surged” with 96% increase in cumulative capacity in 2023. (Energy Storage News, 2024) This report synthesises key findings from recent scholarly articles, highlighting the applications, technological advancements, sustainability benefits, and economic factors supporting BESS adoption.

Key Findings

  • Grid Stability and Renewable Integration: BESS are essential for integrating renewable energy sources and maintaining grid stability through frequency regulation and peak shaving.

  • Economic and Policy Support: Various financial incentives and policies support BESS adoption, reducing initial costs and encouraging investments.

  • Technological Advancements: Innovations in battery chemistry and system integration have enhanced the energy density and efficiency of BESS.

  • Sustainability and Reliability: BESS contribute to sustainable energy goals and provide reliable energy solutions for various applications.

Major Recommendations

  • Increase investment in BESS technologies to further enhance their efficiency and integration capabilities.

  • Promote policies that support the economic viability of BESS, particularly for behind-the-meter applications.

  • Encourage research and development to continue advancing battery technologies and operational strategies.


Battery Energy Storage Systems (BESS) have become increasingly crucial in modern energy systems, facilitating the integration of renewable energy sources and enhancing grid stability. The growing need for reliable and efficient energy storage solutions has spurred significant advancements in BESS technologies. This report aims to provide a comprehensive overview of the growth and applications of BESS in the USA, drawing on recent scholarly research to highlight key developments, economic and policy support, technological advancements, and sustainability benefits. The report focuses on the applications of BESS for grid stability and renewable energy integration, economic and policy factors influencing their adoption, technological advancements, and their role in promoting sustainability and reliability.


Research Design

The research design involves a systematic review of recent scholarly articles on BESS, focusing on applications, developments, economic and policy support, technological advancements, and sustainability aspects.

Data Collection Methods

Data was collected from peer-reviewed journals, industry reports, and government publications, ensuring a comprehensive and up-to-date analysis of the current state and future prospects of BESS.

Analysis Techniques

Qualitative analysis techniques were employed to synthesise findings from various sources, identifying key trends and developments in the BESS sector.


Grid Stability and Renewable Integration

BESS play a critical role in integrating renewable energy sources like solar and wind into the power grid, providing grid stability by balancing supply and demand. (Chatzigeorgiou et al., 2024; Zhao et al., 2023) They are instrumental in frequency regulation and peak shaving, which help maintain grid stability and reduce energy costs. (Li & Wang, 2019; Padmanabhan et al., 2019)

Economic and Policy Support

The adoption of BESS in the USA is bolstered by various financial incentives and policies aimed at promoting renewable energy and energy storage. These policies reduce the initial costs and encourage investments in BESS. (Zhang et al., 2018) Behind-the-meter applications, where BESS manage energy usage and costs at the consumer's end, are becoming increasingly popular due to their economic benefits. (Gandhok & Manthri, 2022)

Technological Advancements

Technological improvements in battery chemistry and system integration have led to enhanced energy density and efficiency of BESS. (Datta et al., 2021) Innovations in control methods and operational strategies are critical for optimizing BESS performance in various scenarios, including grid-connected and off-grid applications. (Hannan et al., 2021)

Sustainability and Reliability

BESS contribute significantly to sustainable energy goals by enabling the use of renewable energy and reducing reliance on fossil fuels. Reliability assessments indicate their effectiveness in various stationary applications, such as backup power and load management, which are vital for critical infrastructure. (Bakeer et al., 2022)


Interpretation of Findings

The findings underscore the multifaceted benefits of BESS, from enhancing grid stability and integrating renewable energy sources to providing economic benefits and supporting sustainability goals. The ongoing technological advancements further enhance their viability for a wide range of applications.

Implications for the Business

Businesses in the energy sector should consider investing in BESS technologies to leverage these benefits. The economic and policy support available can reduce initial investment costs, while the technological advancements promise improved efficiency and reliability.


Summary of Key Findings

  • BESS are essential for integrating renewable energy and maintaining grid stability.

  • Economic and policy support plays a crucial role in promoting BESS adoption.

  • Technological advancements have significantly improved BESS performance.

  • BESS contribute to sustainability by enabling renewable energy use and providing reliable energy solutions.

Final Thoughts

The continued growth and development of BESS are vital for achieving a sustainable and reliable energy future. Stakeholders must collaborate to enhance technological advancements, economic viability, and policy support for BESS


Actionable Suggestions

  • Increase investment in research and development for BESS technologies.

  • Promote policies that support the economic adoption of BESS, particularly for behind-the-meter applications.

  • Encourage collaboration between industry stakeholders to advance technological innovations and operational strategies for BESS.


Bakeer, A., Chub, A., & Shen, Y. (2022). Reliability analysis of battery energy storage system for various stationary applications. Journal of Energy Storage. Elsevier.

Chatzigeorgiou, N. G., Theocharides, S., & Makrides, G. (2024). A review on battery energy storage systems: Applications, developments, and research trends of hybrid installations in the end-user sector. Journal of Energy Storage. Elsevier.

Datta, U., Kalam, A., & Shi, J. (2021). A review of key functionalities of battery energy storage system in renewable energy integrated power systems. Energy Storage. Wiley.

Energy Storage News. (2024). US BESS installations 'surged' in 2023 with 96% increase in cumulative capacity. Retrieved from

Gandhok, T., & Manthri, P. (2022). Economics of stationary energy storage systems: Driving faster adoption for behind-the-meter applications in India. Journal of Cleaner Production. Elsevier.

Hannan, M. A., Al-Shetwi, A. Q., Begum, R. A., & Ker, P. J. (2021). Impact assessment of battery energy storage systems towards achieving sustainable development goals. Journal of Energy Storage. Elsevier.

Li, X., & Wang, S. (2019). Energy management and operational control methods for grid battery energy storage systems. CSEE Journal of Power and Energy Systems. IEEE.

Padmanabhan, N., Ahmed, M., & Kim, H. (2019). Battery energy storage systems in energy and reserve markets. IEEE Transactions on Power Systems. IEEE.

Zhang, J., Cho, H., Luck, R., & Mago, P. J. (2018). Integrated photovoltaic and battery energy storage (PV-BES) systems: An analysis of existing financial incentive policies in the US. Applied Energy. Elsevier.

Zhao, C., Andersen, P. B., Træholt, C., & Hashemi, S. (2023). Grid-connected battery energy storage system: A review on application and integration. Renewable and Sustainable Energy Reviews. Elsevier.


Growth of BESS Installations in the USA (2018-2023)

Battery Energy Storage Systems (BESS) installations in the USA from 2018 to 2023
This chart illustrates the significant increase in Battery Energy Storage Systems (BESS) installations in the USA from 2018 to 2023.