The US energy storage sector is showing resilience despite facing heightened regulatory and tariff-related challenges, according to a new report from law firm Troutman Pepper Locke.
Titled Brave New World: What’s Next for US Energy Storage After OBBBA and Amid Continued Tariff Risk?, the report outlines how battery energy storage systems (BESS) developers and investors are adapting to a more complex risk environment in 2025.
“Energy storage’s versatility of use cases has untethered it from the fate of wind and solar to a meaningful degree,” said Vaughn Morrison, partner at Troutman Pepper Locke. The report highlights growing confidence in storage’s role in grid resilience and price stability.
While the One Big Beautiful Bill Act (OBBBA) has had less impact than feared, its push for domestic battery manufacturing and the Foreign Entities of Concern (FEOC) rules present supply chain hurdles. “The most prepared in the sector have acted nimbly to restructure supply chains,” said John Leonti, chair of the company’s Energy Department.
Despite ongoing uncertainty, including tariff hikes and FEOC compliance, demand for energy storage is surging – driven by data centre growth and ageing grid infrastructure. Tom Cornell, CEO of Prevalon, warned the FEOC rules are “handicapping the industry pretty significantly.”
Yet, with strong federal incentives and bipartisan support, energy storage remains central to America’s energy future. Read the full report here.
