Newly installed energy storage capacity in the United States hit an all-time high in the second quarter and is on pace to reach record levels for the full year. According to a market outlook jointly released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, the country added 20.2 gigawatt-hours of storage capacity in the three months ending in June, with projections pointing to 71 gigawatt-hours of new installations in 2026. To put that in perspective, one gigawatt can power roughly 750,000 American homes.
As of the end of the first half of this year, California and Texas led the nation in total utility-scale battery storage capacity, with installations reaching 62 gigawatt-hours and 33.1 gigawatt-hours, respectively. The SEIA noted in its statement that both states relied on battery power during heat waves, shielding customers from sharp spikes in electricity prices.
More than 74% of the storage capacity installed in the second quarter was deployed in states where former President Donald Trump emerged victorious in the 2024 election, driven primarily by growth in Arizona, Texas, and Utah. Arizona led the country with 6.2 gigawatt-hours of new storage installations, setting a record for the highest single-quarter total ever recorded by any state. While battery storage accounted for a relatively modest share of the U.S. power grid in 2020, it has since become one of the fastest-growing sources of electricity.
The SEIA reported that utility-scale storage nearly doubled from 88 gigawatt-hours to 165 gigawatt-hours during the first 18 months of the Trump administration. This sustained boom in U.S. battery storage demand can be attributed in large part to the rapid expansion of solar power generation and the ever-increasing electricity needs of artificial intelligence. A growing number of data centers are turning to batteries to help manage rapid fluctuations in power demand and provide short-duration backup supply.
The report also highlighted that the domestic battery industry faces headwinds from tariffs and new tax incentive policies that restrict the volume of equipment sourced from China. Despite these challenges, the U.S. is ramping up battery production capacity, with new manufacturing facilities coming online in multiple states, including Ohio, Tennessee, and Texas.
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