The U.S. energy storage business added 9.7 GWh of new capacity in the first quarter of 2026, the best first quarter on record for the sector. Energy storage installations jumped 32% year-over-year in Q1, in spite of government efforts targeting sustainable energy, the “U.S. Energy Storage Market Outlook Q2 2026” (ESMO) issued today by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence.
The installed energy storage capacity is estimated to exceed 610 GWh by 2030.
“Energy storage’s exceptional first quarter only reinforces the core values of this technology: it’s immune from fuel price shocks, it helps keep electricity prices down, and it enhances grid reliability,”
said Darren Van’t Hof, SEIA’s interim president and CEO.
“Long-term forecasts are validating that demand for this technology is growing as off-takers look for energy security, but actions in Washington to delay permitting are threatening to slow that progress. Storage can help America meet rising energy demand and bolster American energy independence, but only if Washington allows the solar and storage industry to build.”
Data Center Demand Drives Storage Growth
Storage demand is being driven by data centers, with Google, Meta, and other IT giants announcing plans to acquire tens of thousands of megawatt-hours of energy storage so far this year. SEIA investigation shows 467 solar and storage projects have permits pending and are susceptible to politically-motivated delays or cancellation.
“Energy storage is no longer just backup; it is critical energy security infrastructure,”
said Shan Tomouk, BESS and energy lead at Benchmark Minerals.
“A supportive policy environment for BESS will be crucial to driving the uptake of AI and data centers, while avoiding negative cost impacts on ordinary consumers.
Regional Leaders and Deployment Breakdown
Texas, Arizona, and California ranked as the top three states for utility-scale battery storage capacity in Q1, continuing to be the three biggest energy storage markets in America. Seventy-one percent of all utility-scale energy storage capacity deployed in Q1 was constructed in states won by President Donald Trump. Thirteen states now have specific energy storage objectives, and states such as Georgia, Iowa, and Mississippi added a large quantity of energy storage in Q1.
In Q1, 7.8 GWh of utility-scale storage was placed in the United States, 648 MWh of commercial and industrial storage was built, and 515 MWh of residential storage was deployed.
