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U.S. Energy Storage Sets 2025 Record With 18.9 GW Installed, Industry Report Says

Analysts cite tax credits and lower costs as the main drivers, with new trade rules and grid backlogs likely to decide how much of the outlook holds.

The biggest year-on-year increases were seen in the utility-scale and residential segments. Image: Wood Mackenzie

Overview

  • Wood Mackenzie and the American Clean Power Association report 18.9 GW and 51 GWh of storage added in 2025, a 52% jump over 2024, with a quarterly record of 5.8 GW (14.8 GWh) in Q4 including 4.9 GW at utility scale.
  • Utility-scale projects led the year with about 16 GW, and developers show deep pipelines with 152 GW in project databases and 530 GW in interconnection queues as installations spread beyond California and Texas into more states.
  • The residential market surged as the Section 25D tax credit expired, with pv magazine USA citing 2.7 GW in 2025 and Q4 topping 1 GWh, while Solar Power World reported “more than 800 MW,” a gap that reflects differing data definitions across summaries.
  • Wood Mackenzie projects roughly 500 GWh of new storage from 2026 to 2031, with scenarios ranging from a high case topping 36 GW in 2031 to lower outcomes if Foreign Entity of Concern rules, tariffs, permitting and financing constrain supply and timelines.
  • Near term, analysts no longer expect an overall 2026 dip after a rush of late‑2025 starts to lock in the investment tax credit, though home storage may contract by about 2% after the residential credit expired and as interconnection delays bite.