The United States installed more grid battery storage in 2025 than in any year before, and 2026 is on track to beat it. Government data shows utility scale battery capacity grew by a record 15 gigawatts last year, and developers plan even more this year, led by Texas. Here is what the numbers mean, why batteries are booming even as federal support for wind and solar shrinks, and what to expect next.
The numbers behind the boom
Battery storage has gone from a niche to one of the biggest sources of new grid capacity in just a few years. The EIA reports that utility scale battery capacity has grown an average of 70% a year over the last three years.
| Period | Utility scale batteries |
|---|---|
| Added in 2025 | About 15 GW, a record |
| Operating at end of 2025 | 43.6 GW |
| Added in first half of 2026 | 8.3 GW |
| Operating by mid 2026 | Nearly 52 GW |
| Planned for second half of 2026 | About 14 GW |
| Planned for 2027 and 2028 | About 26 GW and 14 GW |
At the start of the year, developers told the EIA they planned 24 GW of new battery capacity for 2026, part of a record 86 GW of total new generating capacity. Planned projects often slip, so the final 2026 figure will likely land below that plan, but a new annual record is still within reach if the second half delivers.
Gigawatts vs gigawatt hours
You will see storage measured two ways, and they are easy to mix up.
Power: how much electricity the batteries can push into the grid at once. The EIA reports capacity this way.
Energy: how much the batteries can store in total. Industry groups often report installations this way.
Using the energy measure, the Solar Energy Industries Association and Benchmark Mineral Intelligence counted 57.6 GWh of new storage in 2025, up 30% from the previous record in 2024 and roughly four times the amount installed three years earlier. Standalone projects accounted for nearly 30 GWh, while storage paired with solar added about 20 GWh. Home batteries grew too, with 3.1 GWh installed, a 51% jump. The group projects more than 600 GWh of total installed storage by 2030.
Why batteries are growing so fast
- Solar needs a partner. Solar output peaks at midday, while demand often peaks in the early evening. Batteries store cheap midday power and release it later.
- Price arbitrage. The EIA notes that operators charge batteries when wholesale prices are low and discharge when prices are high, which makes projects profitable on their own.
- Rising demand. Data centers, AI infrastructure and electrification are pushing demand up, and batteries can be built much faster than most power plants.
- Grid reliability. Batteries respond in fractions of a second, which helps grid operators handle sudden swings in supply and demand.
Texas takes the lead
Texas is the center of the boom. Of the 24 GW of battery capacity planned for 2026, the EIA data puts 12.9 GW, or 53%, in Texas, compared with 3.4 GW in California and 3.2 GW in Arizona. Industry forecasts expect Texas to overtake California as the largest energy storage market in 2026. Texas runs its own grid with a competitive wholesale market, where prices swing widely during the day and reward batteries that can respond quickly.
California still hosts some of the largest projects. The Bellefield solar and storage farm, which started operating in December 2025 with 500 MW of solar and 500 MW of storage, plans to double in size, which would make it the largest power storage facility in the country.
What federal policy changed
The 2025 budget law, known as the One Big Beautiful Bill Act, cut the clean electricity tax credits for wind and solar early. Projects that start construction on or after July 4, 2026, must be in service by the end of 2027 to qualify. Battery storage was treated differently: projects that begin construction through 2033 can still claim the full credit, with a phase down after that. New sourcing limits on components from countries such as China apply to projects starting construction from 2026 onward.
FAQ
How much battery storage does the US have?
Nearly 52 GW of utility scale battery capacity was operating by mid 2026, according to the EIA, up from 43.6 GW at the end of 2025.
Which state has the most battery storage?
California has led for years, but Texas is adding far more capacity in 2026 and is expected to take the top spot.
Do batteries still get a federal tax credit?
Grid scale storage projects do. They keep the full investment credit if construction begins by the end of 2033, subject to new sourcing rules. The homeowner credit ended after 2025.
Will 2026 be another record year?
It could be. With 8.3 GW added in the first half and about 14 GW planned for the second half, 2026 would beat 2025 if most planned projects finish on time.
The verdict
The US battery boom is real and still accelerating. Record installs in 2025, a strong first half of 2026 and a protected tax credit point to more growth, with Texas setting the pace. For the grid, that means cheaper solar power stretched into the evening and more flexibility as demand climbs.
Updated October 2026: rewritten with EIA capacity data through mid 2026, the 2025 industry totals, state leaders and the current federal tax credit rules.
Featured photo: Sungrow EMEA on Unsplash.
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