The U.S. energy storage industry installed a record 20.2 gigawatt-hours (GWh) of new capacity in the second quarter of 2026, taking total installations during the first half of the year to 30.8 GWh, according to the U.S. Energy Storage Market Outlook Q3 2026 released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence.
Utility-scale energy storage capacity has nearly doubled from 88 GWh to 165 GWh during the first 18 months of the Trump administration, as grid operators, utilities and energy buyers increasingly deploy storage to strengthen grid reliability and address rising electricity demand.
The report has raised its energy storage deployment forecast through 2030 by 11.5% to 683 GWh, reflecting stronger-than-expected demand and continued record deployment. More than 10% of the total energy storage capacity currently installed in the U.S. was added during Q2 alone.
“Energy storage is a powerful reliability tool that strengthens our energy security, meets rising demand and puts downward pressure on electricity bills,” said Tim Pawlenty, President and CEO of SEIA.
Arizona Leads Q2 Storage Deployments
More than 74% of the energy storage capacity installed during Q2 was deployed in states won by President Donald Trump in the 2024 election. Arizona, Texas and Utah were among the leading markets.
Arizona recorded 6.2 GWh of new energy storage installations in Q2, marking the strongest quarterly deployment by any U.S. state on record. The state is increasingly pairing its growing solar generation base with battery storage to capture more locally generated electricity, meet rising demand and support electricity affordability.
“Energy storage is no longer just a California and Texas story anymore,” said Shan Tomouk, BESS & Energy Lead at Benchmark Minerals. “We’re seeing strong pipeline growth in Arizona, Nevada, Oregon, Colorado and several other states.”
Texas and California also recorded significant deployment during the quarter, installing 3.8 GWh and 3.6 GWh of storage, respectively.
Battery Storage Supports Grid Reliability
Battery energy storage supplied more electricity to the U.S. grid during the first eight months of 2026 than it did throughout all of 2025. During periods of extreme heat in states such as Texas and California, battery storage has helped supply electricity during peak demand periods, supporting grid reliability and helping mitigate exposure to price spikes.
Utility-scale projects accounted for the majority of Q2 installations, with 17.9 GWh deployed during the quarter. Commercial and industrial energy storage accounted for 1.8 GWh, while residential installations totaled 657 MWh.
U.S. Battery Manufacturing Capacity Reaches Record Levels
The U.S. also recorded growth in domestic battery manufacturing during the quarter. Two new battery cell manufacturing facilities opened in Ohio and Tennessee, while a new 50 GWh battery module manufacturing facility began operations in Texas.
The new facilities have helped push U.S. battery cell and module manufacturing capacity to record levels, supporting the domestic supply of batteries needed for grid-scale energy storage deployment.
With deployment continuing to exceed earlier expectations, the revised 683 GWh forecast through 2030 highlights the accelerating role of battery storage in supporting U.S. grid reliability, electricity demand growth and the expansion of renewable energy.
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