Record-Breaking Growth in U.S. Battery Storage in 2025

In 2025, the United States experienced a significant increase in energy storage capacity, adding a record 57 gigawatt hours (GWh) to the grid, according to a report from the Solar Energy Industries Association (SEIA). This growth, nearly 30 percent from the previous year, is notable given the challenging political climate for renewable energy during the second Trump administration. The SEIA report indicates that this amount of storage could power over 5 million homes annually. Projections suggest that the market could expand by an additional 21 percent by the end of 2026, potentially adding another 70 GWh.

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Despite the administration's opposition to renewable energy, battery storage has shown remarkable resilience. While tax credits for wind and solar were reduced under the One Big Beautiful Bill, battery tax credits remained largely intact. This political support has allowed states like Texas to thrive in the renewable energy sector. In 2025, Texas solar energy met over 15 percent of the state's demand, surpassing coal for the first time. The SEIA predicts that Texas will soon lead the nation in total GWh of storage deployed, overtaking California.

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Jigar Shah, a managing partner at Multiplier and former director of the Department of Energy’s Loan Programs Office, notes that Texas' independent and deregulated power grid has fostered a more market-driven approach to energy. This environment has allowed solar and battery technologies to flourish despite federal resistance. Shah emphasizes that Texas operates on market signals rather than political biases, enabling a diverse energy landscape where both coal and battery projects can coexist.

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The SEIA report highlights that the majority of new battery installations in 2025 were stand-alone systems, not directly linked to solar projects. This trend is significant as it addresses the increasing stress on energy grids due to rising demand. On average, U.S. energy grids utilize only about 50 percent of their available energy, a design choice to accommodate peak demand. The installation of batteries across the grid can help capture and store excess energy generated during off-peak times, reducing waste.

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While the growth of battery storage is largely viewed positively, some critics argue that the focus on battery technology may divert attention from other renewable energy sources. Concerns have been raised about the environmental impact of battery production and disposal, as well as the long-term sustainability of relying heavily on battery storage.

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• “Texas basically says, ‘I don't care about your cultural bias,’” — Jigar Shah, Managing Partner at Multiplier

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• “The growth of stand-alone storage is a good sign for grids that are increasingly stressed by skyrocketing demand.” — SEIA Report

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The developments in battery storage reflect a complex interplay of market forces, political dynamics, and technological advancements, positioning the U.S. for a potentially transformative shift in energy management.

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