The United States witnessed unprecedented growth in energy storage capacity in 2025, with a record 57 gigawatt-hours of new batteries added to the grid. This expansion represents a notable success story for clean energy, particularly given the anti-renewable policies of the current administration. The boom in battery installations suggests utilities are preparing for increasing electricity demand and evolving grid infrastructure.
Rapid Expansion and Market Trends
According to a new report by the Solar Energy Industries Association (SEIA), battery storage installations grew by nearly 30% compared to the previous year. This translates to enough capacity to power over 5 million homes annually. Forecasts predict another 21% jump by the end of 2026, adding an additional 70 gigawatt-hours. This growth is a stark contrast to the situation less than a decade ago, when total grid storage was only around half a gigawatt.
The resilience of battery storage is remarkable: despite cuts to wind and solar tax credits under the One Big Beautiful Bill, battery tax incentives largely remained intact. This has enabled significant growth even in politically conservative states like Texas.
Texas Leads the Charge
Texas is emerging as a renewable energy leader, with solar meeting over 15% of demand last summer, surpassing coal for the first time. The SEIA report projects that Texas will overtake California this year as the state with the most deployed storage capacity.
The state’s largely deregulated power grid allows market forces to drive adoption, as explained by Jigar Shah, a managing partner at Multiplier. “Texas basically says, ‘I don’t care about your cultural bias,’” he notes. “These are the market signals… If you want to build batteries, great.”
Standalone Storage and Grid Optimization
While many new batteries are co-located with solar projects, the majority of installations in 2025 were standalone units. This is crucial for improving grid efficiency, as current grids typically operate at only 50% capacity. Batteries can absorb excess energy during off-peak times, reducing waste and making better use of existing infrastructure.
Optimizing grid capacity is key: by charging batteries during low-demand periods and discharging them during peak hours, utilities can avoid costly upgrades while ensuring reliable power delivery.
Data Centers and Supply Chain Challenges
Behind-the-meter installations, particularly for data centers facing grid connection delays, also drove growth. However, reliance on foreign supply chains—especially China—remains a concern. Restrictions imposed by the One Big Beautiful Bill on manufacturers from certain countries could hinder future expansion.
Additionally, cuts to solar tax credits may lead to project cancellations, reducing the pipeline of future storage deployments.
Looking Ahead
Despite these challenges, the outlook for battery storage remains positive. The administration’s growing focus on affordability may push policymakers toward recognizing the economic benefits of energy storage.
“Going into 2026, where the president is really under siege around affordability, you’re finding that all of the people who are in charge of solving this problem have become way more sober.”
The continued growth of battery storage is poised to reshape the US energy landscape, offering a viable path toward a more resilient and efficient grid.
