NEW REPORT: US adds 58GWh of new energy storage capacity in 2025, largest single year of new battery capacity on record

Inaugural Report Demonstrates Critical Role Energy Storage Plays in Ensuring Grid Reliability and Keeping Energy Prices Down

Feb. 23, 2026

WASHINGTON, D.C. — The US energy storage industry installed a record-shattering 57.6 gigawatt-hours (GWh) of new capacity in 2025, the largest single year of new battery capacity additions on record. Despite actions in Washington targeting clean energy, energy storage installations grew 30% from the previous record set in 2024, and are over four times what the industry installed just three years ago.

According to the US Energy Storage Market Outlook Q1 2026 (ESMO) released today by Benchmark Mineral Intelligence and the Solar Energy Industries Association (SEIA), as of 2025, 137GWh of utility scale storage has been installed in the United States. 19GWh of commercial and industrial (C&I) storage has been installed and 9GWh of residential storage has been installed.

Despite actions in Washington targeting clean energy, over 60 GWh of energy storage is expected to be installed by 2030. This rapid deployment will help lower energy costs, enhance reliability, and boost American energy independence.

“The US energy storage market has entered a new phase of sustained, high volume-deployments," said Iola Hughes, Head of Research at Benchmark Minerals. “As policy, manufacturing and market demand align, storage is playing a pivotal role in meeting peak demand, reducing price volatility and improving overall system resilience. At a time of rising electricity demand, driven in part by the growth of data centers and AI infrastructure, energy storage will be critical to ensuring the grid can scale reliably and efficiently.”

Two-thirds of all utility scale energy storage capacity installed in 2025 was built in states won by President Donald Trump, including 9 of the top 15 states for new installations. Texas is set to overtake California in 2026 as the largest energy storage market in the country.

Standalone storage made up nearly 30GWh of new capacity added in 2025, while storage paired with solar accounted for 20GWh. The residential energy storage sector added 3.1GWh in 2025, marking a 51% year-on-year increase. Expansion of virtual power plant programs in states such as Massachusetts, Texas, Arizona, and Illinois are driving residential storage deployment, which helps states cut costs, manage peak demand, and strengthen grid resilience.

“This record-breaking year for energy storage is just the beginning of its rise as a cornerstone of America’s energy future,” said Darren Van’t Hof, Interim President and CEO of the Solar Energy Industries Association. “Whether it’s paired with solar or standing on its own, energy storage lowers consumer costs, makes the grid more reliable, and keeps the power on in homes during outages. Deployment is rising fast, but without a course correction from federal actions targeting the industry, Americans will face higher electricity prices and a less resilient energy system.”

In 2025, battery cell manufacturers pivoted from EV manufacturing towards dedicated energy storage production, converting existing lines and changing future plans. As of 2025, lithium ion battery cell manufacturing for stationary electricity storage applications has risen to over 21GWh according to SEIA’s Solar and Storage Supply Chain Dashboard, which is enough to power the city of Houston from sunset to sunrise. And American manufacturing facilities now have the capacity to manufacture 69.4GWh of battery energy storage systems.

The Energy Storage Market Outlook has been produced in collaboration with SEIA, combining Benchmark’s proprietary grid and behind the meter data on US energy storage deployment, with SEIA’s industry-leading policy and market expertise. Together, the two organisations will jointly deliver in-depth analysis of current market conditions and forward-looking forecasts designed to support industry leaders, investors, manufacturers, utilities, and policymakers.

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