Battery installations in the United States achieved a remarkable milestone in the second quarter of 2026, with a total of 20.2 gigawatt-hours of new capacity coming online. This significant increase is enough to meet the daily energy requirements of approximately 700,000 households. According to a recent report from Benchmark Mineral Intelligence and the Solar Energy Industries Association, the country is projected to install a total of 71 gigawatt-hours of battery capacity by the end of the year, marking a 20% rise compared to the previous year. The growth is largely attributed to declining battery costs and an increasing demand for energy storage solutions as renewable energy sources, such as solar and wind power, are integrated into the national grid.
The surge in installations has been primarily driven by large-scale utility projects, with seven new gigascale battery systems—those boasting capacities exceeding one gigawatt-hour—being brought online during this quarter alone. Shan Tomouk, energy storage lead at Benchmark Mineral Intelligence, emphasized that the record-setting numbers can be attributed to a few significant projects. Meanwhile, behind-the-meter battery systems, which encompass residential and industrial battery storage, also saw growth, particularly in data centers, which accounted for around 75% of new commercial sector installations. However, residential battery installations are expected to decline by 16% in 2026 compared to last year, primarily due to the expiration of a tax credit that previously subsidized these systems.
Despite the temporary slowdown in home installations, experts remain optimistic about the overall battery market. Isshu Kikuma, an energy storage analyst at BloombergNEF, noted that batteries represent one of the strongest sectors in the U.S. energy landscape. A notable trend emerging in this space is the push for domestically produced technology. Currently, most newly installed systems utilize battery cells manufactured in China, although some are assembled into complete storage solutions within the U.S. Recent energy storage tax credits have begun to incentivize a reduction in reliance on imported batteries, driving a shift toward local manufacturing. While new production capacities are anticipated to come online in the U.S., they may not fully satisfy demand until around 2030, potentially leading to price increases in the interim.
Source: Batteries just broke another record in the US via MIT Technology Review