As electricity demand continues to increase across the United States and many households express concerns about rising energy bills, battery energy storage is becoming an increasingly important part of the country’s power system. Energy storage technologies help balance electricity supply and demand, support grid stability, and provide more affordable and reliable power for homes and businesses.
A new report titled the Energy Storage Market Outlook has highlighted the growing role of energy storage in the national energy infrastructure. The report was released by Solar Energy Industries Association and Benchmark Mineral Intelligence. It outlines several major trends that demonstrate how battery storage is improving grid reliability while helping reduce energy costs for consumers.
One of the most notable developments is the rapid growth of residential battery systems. In 2025, home battery capacity in the United States increased by 51 percent. These systems allow homeowners to store electricity, often generated from rooftop solar panels, and use it later when electricity prices are higher or when grid power is unavailable.
Residential energy storage is particularly useful during extreme weather events, when power outages can occur. According to the report, the residential battery market is expected to grow by around 120 percent by the year 2030. When residential batteries are combined with distributed solar systems, they can also support the creation of virtual power plants.
These networks connect many individual home batteries and solar systems, allowing grid operators to manage them collectively. By coordinating stored electricity from multiple homes, virtual power plants can help meet periods of high electricity demand and reduce pressure on the grid. This approach can also help lower electricity costs for consumers by making power supply more efficient.
Energy storage is also expanding rapidly in the commercial and industrial sector. In 2025, battery installations for businesses and industrial facilities increased by 42 percent. This growth is partly driven by the rising electricity needs of industries such as artificial intelligence development and large data centers. As technology companies invest heavily in AI systems, the demand for reliable electricity has increased significantly.
Data centers, which require continuous and stable power supplies, are turning to battery storage to manage fluctuations in electricity demand and supply. Energy storage allows these facilities to balance power loads instantly and maintain reliable operations. In addition, delays in the construction of new natural gas power plants—due to supply shortages for gas turbines—have encouraged many data center operators to pair battery storage with solar power systems.
This combination allows them to secure dependable energy while meeting the fast timelines required by the technology industry. Large utility-scale storage projects are also playing an important role in supporting renewable energy generation. In 2025 alone, around 20 gigawatt-hours of new storage capacity in the United States was directly paired with solar energy projects.
Solar power has the advantage of having no fuel costs once a system is installed. However, solar electricity production varies throughout the day because it depends on sunlight. Battery storage helps solve this challenge by storing excess electricity generated during sunny daytime hours.
That stored power can then be released later in the evening when electricity demand is typically higher but solar generation declines. This combination of solar power and energy storage allows grid operators to meet demand more efficiently while reducing reliance on expensive peaker plants, which are power plants used only during periods of peak demand and often contribute to higher electricity prices.
Another interesting trend identified in the report is the geographic distribution of new energy storage installations. In 2025, about two-thirds of all newly installed energy storage capacity was built in states that voted for Donald Trump in the 2024 presidential election. Despite political debates around energy policy, many of these states are rapidly expanding renewable energy and storage projects.
Public opinion surveys conducted by conservative polling organizations show that many voters in these states support the development of solar energy and energy storage. Their reasons include reducing electricity costs, improving national energy security, and increasing domestic manufacturing opportunities in the energy sector. Similar trends have also been seen in the solar industry, where a large portion of new solar projects have been built in these same states.
Overall, 2025 marked a record year for energy storage development in the United States. The country installed approximately 57 gigawatt-hours of new battery storage capacity during the year. This amount of stored electricity is enough to power about 5.1 million homes simultaneously for an entire year. However, industry experts expect even faster growth in the coming years. The report forecasts that the United States could add around 70 gigawatt-hours of new energy storage capacity in 2026 alone.
Looking further ahead, the total installed energy storage capacity in the country could exceed 600 gigawatt-hours by 2030. These projections highlight the increasing importance of battery storage in supporting a modern electricity system. As renewable energy generation expands and electricity demand continues to grow, energy storage will play a key role in maintaining reliable power supplies, managing costs, and helping the United States transition toward a more flexible and resilient energy infrastructure.
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