The U.S. energy storage industry installed a record 20.2 gigawatt-hours of new capacity in Q2, bringing total installations in the first half of 2026 to 30.8 GWh, according to the U.S. Energy Storage Market Outlook Q3 2026 (ESMO) released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence.
Utility-scale energy storage capacity has nearly doubled from 88 GWh to 165 GWh in the first 18 months of the Trump administration, as grid operators, utilities and energy buyers turn to storage to strengthen reliability and meet rising electricity demand.
Demand for energy storage is outpacing expectations, prompting a 11.5% increase in the report’s forecast through 2030 to 683 GWh. The upward revision comes as the industry continues to set deployment records, with more than 10% of all energy storage capacity currently installed in the U.S. coming online in Q2 alone.
More than 74% of the energy storage capacity installed in Q2 was built in states won by President Donald Trump in 2024, led largely by Arizona, Texas, and Utah. Arizona led the country with 6.2 GWh of new storage installations in Q2, the strongest quarter for any one state on record. Arizona, which has the nation’s fourth-largest solar market, is increasingly pairing its abundant solar resources with storage to capture more homegrown power, meet rising demand, and help keep electricity costs down.
“Energy storage is no longer just a California and Texas story anymore,” said Shan Tomouk, BESS & Energy Lead at Benchmark Minerals. “We’re seeing strong pipeline growth in Arizona, Nevada, Oregon, Colorado and several other states.”
Battery energy storage supplied more electricity to the grid in the first eight months of 2026 than in all of 2025. During periods of extreme heat in states like Texas and California, storage has helped provide power when demand is highest, supporting grid reliability and helping protect consumers from price spikes. Texas and California installed 3.8 GWh and 3.6 GWh of storage, respectively, in Q2.
The U.S. also set domestic manufacturing records, with the opening of two new battery cell manufacturing facilities in Ohio and Tennessee, and a new 50 GWh battery module facility in Texas. Together, these facilities bring U.S. battery cell and module manufacturing capacity to record highs, ensuring that more of the batteries being deployed to strengthen the grid are made in the United States.
Utility-scale projects accounted for the vast majority of Q2 installations, with 17.9 GWh deployed, followed by 1.8 GWh of commercial and industrial storage, and 657 MWh of residential storage.
