Texas Set to Surpass California in Battery Storage Capacity
A recent report indicates that Texas is on track to become the leading state in battery storage capacity, surpassing California. This shift comes as the U.S. installs a record 57.6 gigawatt-hours (GWh) of energy storage in 2025, marking a 30% increase compared to the previous year.
Record Growth in U.S. Battery Storage
The report, part of the US Energy Storage Market Outlook Q1 2026 from the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, reveals substantial growth. Currently, the U.S. boasts a total of 137 GWh of utility-scale storage, in addition to 19 GWh for commercial and industrial purposes, and 9 GWh of residential storage.
Future Projections
- Over 600 GWh of energy storage is expected to be deployed across the nation by 2030.
- Two-thirds of the new utility-scale storage installations in 2025 were in red states, with Texas leading the charge.
- Texas is projected to exceed California in battery storage capacity by 2026.
Key Drivers Behind Growth
The rise in installations can be attributed to various factors. Notably, standalone battery projects contributed nearly 30 GWh in new capacity, while solar-plus-storage solutions added around 20 GWh. Additionally, residential storage saw a significant growth of 51%, reaching 3.1 GWh.
Impact of Virtual Power Plant Programs
States like Massachusetts, Texas, Arizona, and Illinois are implementing virtual power plants, which reduce costs and alleviate pressure during peak electricity demand. This trend is fueling wider adoption of energy storage solutions.
Manufacturing Changes and Supply Chain Adaptations
The demand for energy storage is prompting manufacturers to adjust their production. In 2025, numerous battery cell producers shifted from electric vehicle (EV) batteries to stationary storage systems, resulting in lithium-ion cell manufacturing for stationary uses exceeding 21 GWh.
Increased Manufacturing Capacity
- U.S. factories can now produce 69.4 GWh of battery energy storage systems annually.
Industry Perspectives
Darren Van’t Hof, interim president and CEO of SEIA, emphasizes that while deployment rates are increasing, federal policy changes are needed to stabilize the industry and avoid rising electricity prices. Meanwhile, Iola Hughes from Benchmark Minerals highlights the growing demand for energy storage in the context of increased electricity needs, particularly due to data centers and AI technology.
The growth of battery storage installations is critical for transforming the U.S. electrical grid. It is clear that energy storage is no longer just an adjunct technology; it is becoming essential infrastructure. As demand continues to surge, the shift towards sustainable energy solutions will define the future of the electricity landscape.
