Energy Storage Is Strengthening Reliability. These Five States Are Leading the Charge

Americans don’t think about grid reliability. They flip the light switch, open the refrigerator, turn up the AC, and expect the power to be there. But as electricity demand surges from data centers, advanced manufacturing, and extreme summer heat, keeping the lights on requires a grid that can deliver power exactly when it’s needed.

That’s where energy storage comes in. Energy storage allows grid operators to store energy when it is cheap and abundant, then dispatch it when demand increases to help reduce price spikes. The market for this technology is soaring. In 2020, there were 6,000 megawatt-hours (MWh) of energy storage capacity installed in the U.S. Today, the sector has eclipsed 175,000 MWh, enough to power over 5 million homes for a full day on just a single charge.

States across the country are taking notice and adjusting their energy strategies accordingly. From California to Massachusetts, policymakers are making energy storage a central part of their plans to build a more reliable grid. Since 2010, 13 states have enacted policies to build out their energy storage capacity, and some have already outperformed their own benchmarks.

As more states look to build out their storage portfolios, these five stand out as examples for policymakers everywhere to watch:

California

In 2010, California became the first state in the country to adopt an energy storage procurement target, setting a goal of 1,825 megawatts (MW) by 2024. The state quickly met that target and has far surpassed it. The Golden State now boasts over 21,000 MW of energy storage capacity and has set new targets for long-duration storage.

California’s growing battery capacity puts significant downward pressure on the peak generation demands from the grid. On the evening of August 1, 2026, the state’s primary grid operator surpassed 13,000 MW of battery discharge for the first time, supplying one-third of the state’s total power demand.

Nevada

Nevada’s bipartisan storage standard was signed into law by Republican Governor Brian Sandoval in 2017. Since then, the state has built out its storage supply under both Republican and Democratic governors, thanks to a strong alignment between utilities, regulators, and legislators. Following the standard’s approval by Governor Sandoval, the Nevada Public Utilities Commission set incremental goals to get the state to 1,000 MW of capacity by 2030. With 1,700 MW currently, Nevada has already blown past their 2030 goal and ranks 4th in the nation for energy storage capacity installed.

Illinois

Moving eastward, Illinois is positioning energy storage as a key part of its strategy to build a more affordable, reliable grid. Earlier this year, Governor J.B. Pritzker signed the Clean and Reliable Grid Affordability Act into law, which directs the Illinois Power Agency to procure 3,000 MW of energy storage by 2030. The law also incentivizes standalone storage projects and creates a Virtual Power Plant program to put distributed energy resources like home battery storage to work when demand is highest. Taken together, these measures are expected to save Illinois families and businesses an estimated $13.4 billion in electricity bills over the next 20 years.

Virginia

Virginia’s data center boom is driving some of the fastest electricity demand growth in the country, putting new pressure on the Commonwealth to build more reliable, affordable sources of power. That challenge was front and center in the 2025 gubernatorial election, when rising electricity bills emerged as a major issue for voters.

In 2026, Governor Abigail Spanberger and state lawmakers expanded the state’s energy storage target beyond what was initially set in the 2020 Virginia Clean Economy Act. With advocacy from SEIA and its partners, Virginia is now targeting an additional 16,780 MW of short-duration storage by 2040 and 4,520 MW of long-duration storage by 2045.

Massachusetts

In 2018, then-Massachusetts Governor Charlie Baker signed An Act to Advance Clean Energy, setting a target for 1,000 MWh of energy storage capacity by 2025. The state surpassed that goal last year and now has over 1,500 MWh of storage capacity.

Now, Governor Maura Healey is building on the foundation laid by her predecessor, showing how energy storage can bring policymakers together around a shared goal: keeping the grid reliable and electricity affordable. Through legislation signed in 2024 and an executive order this year, Governor Healey is doubling down on Massachusetts’ storage focus and setting sights on building out more long-duration energy storage.

Every State Can Be a Storage State 

California, Nevada, Illinois, Virginia, and Massachusetts are showing what’s possible when state leaders make energy storage a central part of their reliability strategy. But they are not alone.

Across the country, policymakers and grid operators are recognizing that batteries can help meet rising electricity demand, strengthen grid reliability, and deliver power when and where it is most needed.

In 2025, the Georgia Public Service Commission unanimously approved an Integrated Resource Plan that calls for more than 1,500 MW of new energy storage, while Texas has become the second-largest storage market in the country.

The policy approaches vary, but the strategic advantage of robust storage deployment is the same: storage gives states a flexible resource that can help keep the grid reliable while delivering affordable power to ratepayers.

Is your state making energy storage progress?