Mercom has published a list of the top five VC-funded energy storage companies in 2023, with a 28% year-on-year decline in corporate funding. The report found that US Inflation Reduction Act (IRA) tax credits for domestic manufacturing of clean energy technologies including batteries provided positive signals to investors. However, corporate funding into energy storage decreased by 55% from 2021’s US$17 billion total. VC funding rose by 59% YoY to US$9.2 billion in 2020, largely due to incentives like manufacturing credits for battery components. Despite this trend, M&A activity lagged due to high asset valuations, elevated interest rates, and investor caution.

Solar Dominates US Energy Capacity Growth
The Federal Energy Regulatory Commission (FERC) has published data showing that solar accounted for over 75% of US electrical generating







