Energy Storage Market Outlook Q1 2026

Key Findings

• In 2025, battery energy stationary storage (BESS) installations surpassed 57 GWh/28 GW, a y-o-y increase of 29% (GWh). The utility-scale market underpinned growth with just under 50 GWh/16GW installed, with California, Texas and Arizona accounting for 74% of installed capacity.  

• Meanwhile, the behind-the-meter (BTM) market saw its share of demand remain consistent with 2024 at 13% of the total market, representing 8 GWh/12 GW. The BTM market saw strong growth in the residential market as the 25D tax credit came to an end.  

• Throughout 2025 the U.S. BESS policy landscape has seen significant change, with the most substantial being the passage of the One Big Beautiful Bill Act (OBBBA). Several states also announced greater commitments to renewables and energy storage. 

• U.S. BESS deployments are set to increase to 70 GWh/35 GW in2026, with the utility-scale market accounting for 62.4 GWh/20.2GW and BTM markets accounting for 7.3 GWh/14.8 GW. This represents an estimated $25.2B in capital investment.  

• By 2030, the market is set to exceed annual installations of 110 GWh/47 GW. By 2030 cumulative installed utility-scale BESS is set to reach just under 500 GWh. 

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