U.S. Adds 10 GWh of New Energy Storage Capacity in First Quarter, Marking Largest Q1 on Record

As War in Iran Drives Push for Energy Security, Energy Storage Forecast Revised Upwards over Next Five Years

WASHINGTON, D.C. — The U.S. energy storage industry installed 9.7 gigawatt-hours (GWh) of new capacity in the first quarter of 2026, the strongest first quarter in the sector’s history. According to the U.S. Energy Storage Market Outlook Q2 2026 (ESMO) released today by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, energy storage installations in Q1 were up 32% year-over-year despite actions in Washington targeting clean energy.

Over 610 GWh of energy storage is now expected to be installed by 2030, up from previous projections. As investors, developers, and grid operators respond to energy price volatility tied to disrupted global gas and gas turbine supplies, solar and storage are becoming increasingly attractive because they are insulated from fuel price swings and increasingly made in America.

“Energy storage’s remarkable first quarter only underscores the fundamental values of this technology: it’s insulated from fuel price shocks, keeps electricity costs down, and strengthens grid reliability,” said Darren Van’t Hof, interim president and CEO of the Solar Energy Industries Association. “While long-term forecasts are validating that the demand for this technology is rising as off-takers seek energy security, actions in Washington to stall permitting are threatening to slow that progress. Storage can help America meet rising energy demand and strengthen American energy independence, but only if Washington lets the solar and storage industry build.”

Data centers are driving demand growth, with Google, Meta and other tech companies announcing deals to procure tens-of-thousands of megawatt-hours of energy storage so far this year. The surging deployment of energy storage will help meet demand and keep energy costs down, while enhancing the reliability of the grid and fortifying American energy security.

However, if federal permitting bottlenecks persist, household electric bills will continue to rise and China will surge further ahead in the race for AI leadership. SEIA analysis shows that 467 solar and storage projects have permits pending and are vulnerable to politically-motivated delays or cancellations.

“Energy storage is no longer just for backup, it’s critical energy security infrastructure,” said Shan Tomouk, BESS and Energy Lead at Benchmark Minerals. “A supportive policy landscape for BESS will be crucial to enabling the rollout of AI and data centers, while mitigating adverse cost impacts to regular consumers.”

Texas, Arizona and California led the nation in utility-scale battery storage capacity in Q1, maintaining their positions as the three largest energy storage markets in America. Notably, 71% of all utility scale energy storage capacity installed in Q1 was built in states won by President Donald Trump. Thirteen states now have explicit energy storage targets, helping drive continued investment and deployment. States like Georgia, Iowa, and Mississippi also posted notable gains in installed storage capacity during the quarter.

In Q1, 7.8 GWh of utility-scale storage was installed in the United States. 648 MWh of commercial and industrial (C&I) storage was installed, and 515 MWh of residential storage was installed.

Key Findings

• In Q1 2026, battery energy stationary storage (BESS) installations reached 9.7 GWh, the largest Q1 in history and a 32% year-over-year increase.

• The utility-scale market continued underpin growth, with 7.8 GWh/ 1.5 GW installed, with six states adding more than 500 MWh of new capacity.

• Meanwhile, the behind-the-meter (BTM) market deployment fell to 1.91 GWh, largely due to the decrease of deployments in the residential industry to 515 MWh, a 35% quarter-over-quarter. The C&I space also saw a drop, adding 648 MWh.

• Many EV factories are retooling production lines to serve the energy storage market, and the United States could reach over 120 GWh of battery cell manufacturing if all of these facilities come online as planned.

• By 2030, the market is set to exceed annual installations of 110 GWh and install a cumulative 613 GWh.

https://seia.org/wp-content/uploads/2026/02/StorageCheatSheet_2026_Q2.pdf

Energy Storage Cheat Sheet

• Storage Capacity:
  175 GWh

• Storage Deployed in 2025:
  57.6 GWh

• Total Storage Jobs:
  78,809

• Number of states with an operational or under construction battery factory:
  24

• Enough Storage Installed in the U.S. to Power:
  5.3 million homes for a year