Batteries just broke another record in the US
Battery installations hit a new record in the US in the second quarter of 2026. In total, 20.2 gigawatt-hours of new capacity came online, according to a new report.
In the second quarter of 2026, the United States installed 20.2 gigawatt-hours of new battery capacity, setting a new record. This amount of energy is sufficient to meet the daily electricity needs of approximately 700,000 homes. The total battery capacity installed in 2026 is projected to reach 71 gigawatt-hours, which represents a 20% increase compared to the previous year. This growth is primarily driven by two factors: the decreasing cost of batteries and the increasing demand for energy storage solutions as renewable energy sources like solar and onshore wind power are integrated into the national grid. The expansion is largely led by large-scale, utility-owned battery systems, which accounted for most of the record-breaking installations during the quarter. According to a report by Benchmark Mineral Intelligence and the Solar Energy Industries Association, seven new gigascale battery installations—each with a capacity exceeding one gigawatt-hour—were completed in this period.
Beyond large utility-scale projects, there has also been growth in so-called behind-the-meter batteries, which include both residential and industrial storage systems. These installations are smaller than utility-scale systems and are typically owned and managed by homeowners or businesses rather than power providers. In the commercial sector, data centers were the leading adopters, accounting for about three-quarters of new behind-the-meter batteries. However, residential battery installations experienced a significant slowdown, with a projected 16% decrease in 2026 compared to the previous year. This decline is attributed to the expiration of a tax credit in 2025 that previously subsidized home battery systems. Shan Tomouk, an energy storage expert at Benchmark Mineral Intelligence, notes that residential installations are expected to recover by the end of the decade. In contrast, tax credits for nonresidential batteries have largely remained intact.
The US battery market is currently dominated by technology manufactured in China, with nearly all new systems using Chinese-made cells, even if some are assembled in the US. However, recent tariffs and new regulations are pushing the industry toward domestic production. Starting in 2026, energy storage tax credits now require projects to reduce their reliance on batteries imported from China. While new manufacturing capacity is being developed in the US, it is unlikely to meet demand until at least 2030, which may lead to temporary price increases. Shan Tomouk from Benchmark Mineral Intelligence highlights that this shift is part of a broader trend toward localizing the energy storage supply chain. The move is intended to strengthen the domestic industry but may initially impact costs and availability.
The battery sector is currently one of the strongest in the US energy market, according to Isshu Kikuma, an energy storage analyst at BloombergNEF. The rapid expansion is driven by the urgent need for energy storage to support the integration of renewable energy sources into the grid. Utility-scale systems continue to lead the way, but behind-the-meter installations, particularly in commercial settings like data centers, are also contributing to growth. The expiration of residential battery tax credits has temporarily slowed home installations, but recovery is anticipated by the end of the decade. Meanwhile, the push for domestic production is reshaping the industry, with long-term benefits expected despite short-term challenges such as higher prices and limited supply.
