Forecast: US Battery Storage Market to See 70GWh Deployments by 2026

wing the state’s ambitious clean energy and storage targets. Texas saw 1,883MWh, and Arizona added 1,077MWh.California’s Self-Generation Incentive Program and other local policies have been instrumental in supporting market growth. Arizona’s clean energy policies have also encouraged the adoption of battery storage systems, while Texas has seen increased activity due to its competitive market.The report projects a compound annual growth rate (CAGR) of 46% from 2025 to 2030 for the US energy storage market. By 2030, installations are forecasted to hit 100GW/270GWh. Utility-scale installations are expected to lead the growth, with the utility-scale pipeline growing to 5GWh.The rapid growth of energy storage installations has been driven by a combination of state policy mandates, federal incentives, and falling technology costs. The Federal Energy Regulatory Commission’s Order 2222 has facilitated the integration of storage resources into wholesale energy markets, driving further deployment.Throughout 2025, lithium-ion batteries remained the dominant technology, with a 95% market share. Other technologies like flow batteries and thermal energy storage also saw growth, accounting for the remaining 5% market share.Moreover, rising demand for electric vehicles (EVs) has also fueled the energy storage market. Increased penetration of EVs has led to growing investment in charging infrastructure and support for grid integration.The Energy Storage Market Outlook highlights the importance of continued policy support to sustain market growth. Incentives for energy storage deployment, robust permitting processes, and grid modernization efforts are essential in ensuring the scalability of energy storage systems.The association emphasizes the need for a stable policy environment to attract investments and ensure the reliability of the grid. By addressing regulatory barriers, enhancing interconnection processes, and streamlining permitting, the energy storage market can continue to thrive and support the transition to a cleaner, more resilient grid.The report’s projections demonstrate the significant potential for energy storage in the US market. As the country continues to embrace renewable energy sources and decarbonization efforts, energy storage will play a crucial role in balancing supply and demand, enhancing grid stability, and driving the transition to a low-carbon future.