US energy storage market grows at record pace in Q2 2025

The US energy storage market grew at an unprecedented pace during the second quarter of this year, with 5.6 gigawatts (GW) added to national storage capacity.

According to a report by the American Clean Power Association (ACP) and Wood Mackenzie, the utility sector led this growth, adding a record 4.9 GW in Q2 2025, enough capacity to meet the needs of 3.7 million American homes during peak consumption periods.

In the residential sector, storage capacity grew by 608 MW during the same quarter, a 132% increase year-on-year (YoY) and an 8% increase quarter-on-quarter (QoQ). The largest growth occurred in California, Arizona, and Illinois, driven by increased home connection rates.

Commercial and industrial storage saw lower growth but increased by 11% YoY to reach 38 MW, with California and New York contributing more than 70% of the total new capacity.

The report forecasts that the US energy market's storage capacity will reach 87.8 GW by 2029, supported by the utility and residential sectors.

Meanwhile, the pace of major project implementation is expected to decline by 10% in 2027 due to continued uncertainty surrounding the regulation of foreign battery imports.