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2025 US Energy Storage Installations Set New Record, Surpassing 2024 by 52 Percent

The United States energy storage market has recorded a landmark year in 2025, with total installations reaching 18.9 GW across utility-scale, C&I, and residential segments.

March 25, 2026. By News Bureau

The US energy storage market hit a record of 18.9 gigawatts of battery energy storage system (BESS) installations in 2025, a 52 percent increase over 2024, according to the latest US Energy Storage Monitor report released by the American Clean Power Association (ACP) and Wood Mackenzie.

In a year of record growth, Q4 of 2025 closed with the strongest quarterly totals on record, with 5.8 GW installed. Utility-scale installations accounted for 4.9 GW of the Q4 total, a 31 percent increase over the previous year. New activity was spread across 13 different states, demonstrating market diversification outside of California and Texas, which have historically dominated utility-scale battery energy storage deployment.

The US residential storage market also hit a quarterly milestone in Q4 with 1 GWh installed as tax incentive expiration dates accelerated demand. The residential market installed a total of more than 800 MW in 2025, a 75 percent year-on-year increase. California led in growth, installing 700 MW more in 2025 than it did in 2024, driven by high retail electricity rates and a net billing tariff incentivising battery discharge during peak energy usage hours. Puerto Rico, Texas, Arizona, and Illinois rounded out the top five markets for storage growth in 2025.
The Community, Commercial and Industrial (CCI) market also saw record growth with 77 MW installed in Q4 2025 as state policies boosted deployments.

John Hensley, Senior Vice President of Markets and Policy Analysis at ACP said, "The record-breaking energy storage growth seen in 2025 highlights how technology innovation is transforming America's grid."

"This momentum, driven by supportive policy and expanding market opportunities, demonstrates that large-scale storage is now a cornerstone of delivering affordable, reliable, and American-made energy in communities nationwide. Continued collaboration across industry and government will be essential to building on this progress and meeting soaring energy demand,” Hensley added.

Momentum will continue for the battery energy storage market, according to Wood Mackenzie's five-year outlook. The report projects that the US will install half a TWh of storage between 2026–2031, a 250 percent increase over the previous five-year period. Annual utility additions will lead the way, doubling between 2025 and 2030 in GWh installed.

Annual CCI storage installations are also expected to grow by 39 percent between 2025 and 2030 as continued system cost declines and further policy support expand profitable business cases.

"2025 was a banner year for the energy storage market," said Allison Feeney, research analyst at Wood Mackenzie.

Feeney further added, "Declining system costs, supportive policies, and growing revenue opportunities have all contributed to the impressive growth over the last six years. We expect this momentum to continue as the technology becomes even more proven and widely adopted."
Despite continued growth, 52 GW hangs in the balance over regulatory uncertainty and variable demand growth scenarios.

Wood Mackenzie assessed high-case and low-case five-year outlook scenarios for battery energy storage deployment in the report. The high case would result in approximately 36 GW of new battery energy storage deployed in 2031, assuming higher demand growth, federal permitting relief, and that storage technology retains easier access to tax credits in the One Big Beautiful Bill Act (OBBBA) through workable Foreign Entity of Concern (FEOC) guidance increasing domestic system and cell supply. However, the low case results in 17 percent less capacity than the base case. This scenario assumes an increase in protectionist trade barriers that raise system costs and a lower level of load growth.

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Wood Mckenzie

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