The U.S. energy storage industry achieved a record-breaking milestone in 2025, installing 57.6 gigawatt-hours of new capacity—the largest single-year addition of battery storage on record. This represents a 30 percent increase over the previous record set in 2024 and is nearly four times the capacity added just three years ago, highlighting the rapid growth of the sector despite regulatory and policy challenges at the federal level. According to the U.S. Energy Storage Market Outlook Q1 2026 (ESMO), released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, utility-scale storage accounted for 137 GWh of the total installed capacity in the United States as of 2025.
Commercial and industrial storage contributed 19 GWh, while residential storage reached 9 GWh. Looking ahead, the industry is on track to install more than 600 GWh of energy storage by 2030, a deployment that is expected to reduce energy costs, improve grid reliability, and strengthen American energy independence. In 2025, two-thirds of all utility-scale energy storage capacity was installed in states carried by President Donald Trump in the 2020 election, including nine of the top fifteen states for new installations. Texas is expected to surpass California in 2026 as the country’s largest energy storage market.
Darren Van’t Hof, Interim President and CEO of SEIA, remarked on the significance of the record year, stating that energy storage is becoming a cornerstone of America’s energy future. He emphasized that storage, whether paired with solar or deployed as standalone systems, helps lower consumer electricity costs, ensures reliable power, and provides backup during outages. Van’t Hof also warned that without adjustments to federal policies affecting the industry, Americans could face higher electricity prices and a less resilient energy system.
Standalone energy storage made up nearly 30 GWh of the new capacity added in 2025, while systems paired with solar accounted for 20 GWh. Residential storage grew substantially, adding 3.1 GWh during the year, a 51 percent increase compared to 2024. Programs such as virtual power plants in states including Massachusetts, Texas, Arizona, and Illinois have helped accelerate residential storage deployment, allowing utilities to manage peak demand, reduce costs, and strengthen grid resilience.
Battery cell manufacturers have also shifted their focus to meet the growing energy storage demand. In 2025, several companies repurposed production lines from electric vehicle batteries to stationary storage applications, significantly expanding manufacturing capacity. According to SEIA’s Solar and Storage Supply Chain Dashboard, lithium-ion battery cell production for stationary storage surpassed 21 GWh in 2025—enough to power the city of Houston from sunset to sunrise. American manufacturing facilities now have the capacity to produce 69.4 GWh of battery energy storage systems, supporting the rapid expansion of the industry.
Iola Hughes, Head of Research at Benchmark Minerals, highlighted that the U.S. energy storage market has entered a new phase of sustained, high-volume deployments. She noted that the alignment of policy, manufacturing, and market demand is allowing storage to play a critical role in meeting peak electricity demand, reducing price volatility, and enhancing overall grid resilience. Hughes emphasized that the growth of data centers and artificial intelligence infrastructure is driving electricity demand, making energy storage a vital component for ensuring the grid can scale reliably and efficiently.
The quarterly ESMO report tracks energy storage developments across multiple battery chemistries, including lithium-ion, sodium-ion, zinc-based, metal-air, and flow batteries. It also provides insights into storage duration and system performance metrics. In January 2026, SEIA hosted an Energy Storage Policy Forum on Capitol Hill, bringing together industry leaders and policymakers to discuss strategies for expanding the sector. Alongside the forum, SEIA released a set of new resources and policy priorities aimed at fostering continued growth and deployment of energy storage technologies throughout the year.
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