REPORT: 2025 U.S. Energy Storage Installations Set New Record, Surpass 2024 by 52%
Mar 24 2026
- The听U.S.听installed 18.9听GW听of听utility, C&I, and residential听battery听energy听storage听systems听in 2025
- Q4 2025听set听quarterly record with 5.8 GW installed听听
- The听U.S.听is听projected to install听500 GWh of storage from 2026-2031,听a听250% increase听over听2020-2025听听
WASHINGTON, D.C., March 24, 2026 鈥� The U.S. energy storage market hit a record 18.9 gigawatts听of听battery听energy storage system听installations in 2025, a 52% increase听over听2024, according to the latest U.S. Energy Storage Monitor report released today by the 麻豆夜市 Association (ACP) and Wood Mackenzie.听
In a year of听record growth, Q4听of 2025听closed with the strongest quarterly totals听on record听with 5.8 GW installed. Utility scale听installations听accounted for 4.9 GW听of the Q4 total, a 31% increase听over the previous year.听New activity听was spread across 13 different states,听demonstrating听market听diversification outside of California and Texas,听which have historically听dominated听utility-scale battery energy storage deployment.听
The听U.S.听residential storage market听also听hit a quarterly milestone听in Q4听with 1 gigawatt hour (GWh) installed as听tax incentive听expiration听dates听accelerated demand.听The听residential market installed听a total of听more than 800 megawatts (MW)听in 2025, a 75% year-over-year increase. California led听in听growth, installing 700 MW more听in 2025听than it did in 2024, driven by high retail听electricity听rates and听a听net billing tariff听incentivizing听battery discharge during peak energy usage hours. Puerto Rico, Texas, Arizona, and Illinois rounded out the top five markets for storage growth in 2025.听
The Community,听Commercial听and Industrial (CCI) market听also听saw record growth with 77 MW installed in Q4 2025 as state policies听boosted deployments.听
“The record-breaking energy storage growth seen in 2025 highlights how听technology听innovation is transforming America’s grid,” said听John Hensley, Senior Vice President of Markets and Policy Analysis听at听ACP. “This momentum, driven by supportive policy and expanding market opportunities, demonstrates that large-scale storage is now a cornerstone of delivering affordable, reliable, and听American-made energy in听communities nationwide. Continued collaboration across industry and government will be essential to building on this progress and听meeting听soaring energy demand.”听
U.S.听Installations to surpass 28 GW by 2031 across all segments听
Momentum will continue for the battery energy storage market, according to Wood Mackenzie’s five-year outlook. The report projects that the U.S. will install half a TWh of storage between 2026-2031, a 250% increase over the previous five-year period. Annual utility additions will lead the way, doubling between 2025 and 2030 in GWh installed. A previously anticipated near-term market contraction for utility installations is also no longer expected, as a record-breaking number of projects started construction in 2025 to lock in the previous federal Investment Tax Credit (ITC) requirements. Demand for residential storage rose in 2025 as consumers took advantage of the expiring Section 25D ITC, but the residential market is expected to contract by 2% in 2026 with the expiration of the tax credit. Annual CCI storage installations are also expected to grow by 39% between 2025 and 2030 as continued system costs declines and further policy support expand profitable business cases.听
“2025 was a banner year for the energy storage market,” said听Allison Feeney, research analyst at Wood Mackenzie. “Declining system costs, supportive policies and growing revenue opportunities have all contributed to听impressive听growth听over听the last six years. We expect this momentum to continue as听the technology听becomes even more proven and widely adopted.”听
Despite continued growth,听52听GW hangs in balance over听regulatory听uncertainty听and听variable听demand growth scenarios听
Wood Mackenzie听assessed听high-case and low-case听five-year outlook听scenarios听for听battery听energy storage deployment听in the report.听The听high-case听would result听in approximately听36听GW of听new battery energy听storage deployed in 2031,听assuming听higher demand growth, federal permitting relief,听and that听storage听technology听retains听easier听access to tax credits in the One Big Beautiful Bill Act (OBBBA) through workable听Foreign Entity of Concern听(FEOC)听guidance听increasing domestic听system and cell听supply.听However, the low case results in听17% less capacity than the base case. This听scenario听assumes听an increase in听protectionist trade barriers听that raise听system听costs听and听a lower level of听load growth.听
Allison Weis, Global Head of Storage at Wood Mackenzie, said,听“The market trajectory is strongly upward, but听large load buildout and federal policy听will determine whether we reach the high case of听26听GW by 2031 or something more conservative.”听
听
Notable Market Developments:
听
- The residential market hit a record high in 2025 with 2.7 GW installed, a 92% increase from 2024.听
- Over 50 GW/144 GWh of cumulative energy storage has been installed in the US since 2019, with average annual installations growing 107% year-over-year on a MWh basis.听
- Utility-scale battery system price (US/$kW) increased 23% year-over-year.听
听听
For further information, contact:听
听听
Wood Mackenzie鈥檚 media relations team:听
Mark Thomton
+1 630 881 6885听
[email protected]听
Hla Myat Mon
+65 8533 8860鈥��
[email protected]鈥�听
Chris Boba
+44 7408 841129
[email protected]鈥�听
Angelica Juarez
[email protected]听
About Wood Mackenzie听听
Wood Mackenzie is the global insight business for renewables, energy and natural resources. Driven by data. Powered by people. In the middle of an energy revolution, businesses and governments need reliable and actionable insight to lead the transition to a sustainable future. That鈥檚 why we cover the entire supply chain with unparalleled breadth and depth, backed by over 50 years鈥� experience in natural resources. Today, our team of over 2,000 experts operate across 30 global locations, inspiring customers鈥� decisions through real-time analytics, consultancy, events and thought leadership. Together, we deliver the insight they need to separate risk from opportunity and make bold decisions when it matters most. For more information, visit听.听听