The US energy storage market has reached record highs, with 57.6 GWh of installations in 2025, a 30% year-over-year increase. This growth is attributed to the expanding demand for utility-scale storage, commercial and industrial systems, and residential storage. The total installed capacity now stands at 137 GWh for utility-scale storage, 19 GWh for commercial and industrial systems, and 9 GWh for residential storage.
The Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence have released a report predicting that energy storage will continue to grow, with over 600 GWh projected to be deployed nationwide by 2030. This growth is expected to be driven by the increasing adoption of virtual power plant programs, which are helping reduce costs and alleviate strain during peak demand periods.
The supply chain is also shifting to support the boom in energy storage. In 2025, some battery cell manufacturers began producing dedicated stationary storage cells, converting existing lines and adjusting future plans. Lithium-ion cell manufacturing for stationary storage reached over 21 GWh last year, enough to power a city like Houston overnight.
The growth of energy storage is no longer just about reducing carbon emissions but also about ensuring the grid can scale reliably and efficiently. With most new capacity landing in red states, storage is becoming an essential tool for utilities to reduce costs and increase reliability.
The report highlights that standalone battery projects accounted for nearly 30 GWh of new capacity in 2025, while solar-plus-storage installations made up about 20 GWh. Residential storage deployments reached 3.1 GWh last year, a 51% increase year-over-year.
As the US energy storage market continues to grow, it's clear that the industry is becoming increasingly important for grid resilience and efficiency. The fact that growth is accelerating even amid policy uncertainty shows how strong underlying demand is.
The report also notes that virtual power plant programs in states like Massachusetts, Texas, Arizona, and Illinois are driving adoption by reducing costs and easing strain during peak demand periods. This trend suggests that energy storage will become an integral part of the electricity system rather than a niche add-on.
If projections hold, reaching 600 GWh by 2030 would put the US firmly in an era where batteries are a core pillar of the electricity system. This shift towards a more resilient and efficient grid is likely to have significant implications for the energy industry as a whole.
The growth of energy storage is also having a broader impact on the political landscape, with most new capacity landing in red states. This shift away from partisan climate solutions and towards reliability and cost tools will be closely watched by policymakers and industry stakeholders alike.
As energy storage continues to grow, it's clear that the US is shifting towards a more resilient and efficient grid.
