Report: U.S. adds 58 GWh of new energy storage capacity in 2025
The U.S. energy storage industry installed a record-breaking 57.6 GWh of new capacity in 2025. It marked the largest single year of new battery capacity additions on record. Despite actions in Washington, D.C., targeting renewable energy, energy storage installations grew 30% from the previous record set in 2024 and are four times what the industry installed just three years ago.
According to the U.S. Energy Storage Market Outlook Q1 2026 (ESMO) released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, the United States has installed 137 GWh of utility scale storage as of 2025. By category, 19 GWh of commercial and industrial (C&I) storage has been installed and 9 GWh of residential storage has been installed.
Furthermore, more than 600 GWh of energy storage is expected to be installed by 2030. This rapid deployment will help lower energy costs, enhance reliability, and boost U.S. energy independence.
Cornerstone of U.S. energy
Two-thirds of all utility scale energy storage capacity installed in 2025 was built in states won by President Donald Trump, including nine 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.
“This record-breaking year for energy storage is just the beginning of its rise as a cornerstone of America’s energy future,” says Darren Van’t Hof, interim president and CEO of SEIA. “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.”
Standalone storage made up nearly 30 GWh of new capacity added in 2025, while storage paired with solar accounted for 20 GWh. The residential energy storage sector added 3.1 GWh in 2025, marking a 51% year over year increase. Expansion of virtual power plant programs in states like Massachusetts, Texas, Arizona and Illinois are driving residential storage deployment, which helps states cut costs, manage peak demand, and strengthen grid resilience.
U.S. battery manufacturing grows
In 2025, battery cell manufacturers pivoted from EV manufacturing toward 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 more than 21 GWh according to SEIA’s Solar and Storage Supply Chain Dashboard, which is enough to power the city of Houston from sunset to sunrise. And U.S. manufacturing facilities now have the capacity to manufacture 69.4 GWh of battery energy storage systems.
“The U.S. 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.”
The quarterly ESMO report tracks the various battery chemistries such as lithium-ion, sodium-ion, zinc-base, metal air and flow batteries, as well as energy storage duration data.
In January, SEIA experts hosted an Energy Storage Policy Forum on Capitol Hill to bring together policy and industry stakeholders to discuss the importance of energy storage for meeting rising energy demand. SEIA also released a suite of new resources and energy storage policy priorities to grow the sector in 2026.
