U.S. Energy Storage Market Hits Record 5.6 GW in Q2 2025, Led by Utility-Scale Deployments

The U.S. energy storage market achieved a record quarterly growth in Q2 2025, with 5.6 gigawatts (GW) of new installations, according to the latest U.S. Energy Storage Monitor report from the American Clean Power Association (ACP) and Wood Mackenzie.

The utility-scale segment drove the growth, reaching 4.9 GW—enough to supply power to 3.7 million American homes during average peak demand. While early-adopter regions continue leading deployments, nationwide activity shows strong demand for utility-scale energy storage to address rising electricity prices and increasing energy demand.

Texas, California, and Arizona each added over 1 GW of capacity. The Southwest Power Pool (SPP) region experienced renewed activity, with three projects coming online in Oklahoma—the first in the area in three years. Florida and Georgia also received major forecast upgrades due to aggressive procurement by vertically integrated utilities.

The report projects U.S. storage capacity will reach 87.8 GW by 2029, driven by both residential and utility-scale segments amid an evolving policy landscape. However, utility-scale installations could decline 10% year-over-year in 2027, primarily due to uncertainties surrounding pending Foreign Entity of Concern (FEOC) regulations on battery cell sourcing.

“Energy storage is being quickly deployed to strengthen our grid as demand for power surges and is helping to drive down energy prices for American families and businesses,” said Noah Roberts, ACP Vice President of Energy Storage. “Despite regulatory uncertainty, the drivers for energy storage are strong and the industry is on track to produce enough grid batteries in American factories to supply 100% of domestic demand. Energy storage will be essential to the expansion of the U.S. power grid and American energy production.”