Overview
- The industry installed 9.7 gigawatt-hours of new battery capacity in the first quarter of 2026, a 32% year-over-year rise and the strongest Q1 on record.
- SEIA and Benchmark Mineral Intelligence raised their 2030 deployment forecast to about 610–613 GWh and identified 467 solar and storage projects with permits pending that are vulnerable to delay.
- Large tech buyers, including Google and Meta, plus utilities seeking protection from volatile gas and turbine markets, are pushing demand for grid-scale storage to support AI and site reliability.
- Near-term deployment faces material risks from federal permitting backlogs, new 'foreign entities of concern' compliance rules for tax credits, and incomplete Treasury guidance that could delay or cancel projects.
- Falling battery costs and rapid U.S. cell and pack manufacturing growth, together with automaker plans to make grid batteries, are strengthening project economics even as markets shift toward Texas, Arizona and California.