The US energy storage sector has surged ahead in 2025, with third-quarter installations totalling 5.3GW, already surpassing the full-year figures recorded in 2024.
According to the latest US Energy Storage Monitor from the American Clean Power Association (ACP) and Wood Mackenzie, this represents a 31% year-on-year increase, despite a 6% dip compared to Q2’s record highs.
Utility-scale projects continue to dominate, delivering 4.6GW in Q3 – a 27% rise year-on-year – with Texas and California accounting for 82% of capacity. Residential storage also maintained momentum, marking its sixth consecutive quarter of growth with 647MW installed, up 70% year-on-year. California, Arizona and Illinois led deployments, while Wood Mackenzie forecasts Q4 will set a new record as customers move quickly before the Section 25D tax credit expires.
The Community, Commercial and Industrial (CCI) segment installed 33MW, down 8% year-on-year, though California and Illinois remain strong growth markets supported by state rebate schemes.
“Strong growth in the US energy storage market reflects a simple reality: meeting rising demand and keeping the grid reliable increasingly requires storage,” said John Hensley, ACP senior vice president of markets and policy analysis.
Looking ahead, Wood Mackenzie projects a temporary plateau in 2026 and 2027, before recovery in 2028–29 as domestic manufacturing capacity expands. Nearly 93GW of storage is forecast over the next five years, with utility-scale projections up 15% compared to earlier outlooks.
Notable developments include Wisconsin’s first large-scale projects, Puerto Rico’s resilience-driven residential growth, and record-setting quarters in North Carolina and Arizona.
