The record quarter was driven largely by massive utility-scale systems, including seven new 'gigascale' installations with capacity above one gigawatt-hour. "It really came down to a handful of big projects," said Shan Tomouk, energy storage and energy lead at Benchmark Mineral Intelligence.
Growth in the market is being fueled by cheaper batteries and an urgent need for storage as solar and wind power are added to the grid. The 20.2 GWh added in the quarter is enough to supply the daily electricity needs of about 700,000 homes, the report said.
Data centers led the behind-the-meter category, accounting for about three-quarters of new commercial battery systems. Residential installations, in contrast, are projected to fall 16% in 2026 compared with last year, largely because a tax credit that subsidized home battery systems ended in 2025, Tomouk said. He expects home installations to recover by the end of the decade, noting that tax credits for nonresidential batteries have largely survived.
"This is one of the strong sectors in the US," said Isshu Kikuma, an energy storage analyst at BloombergNEF.
The report also highlights a shift toward US-made technology. Nearly all systems coming online currently use cells made in China, though some are assembled into complete systems domestically. New tariffs and tax credit requirements limiting reliance on Chinese imports are pushing the industry toward local production. Manufacturing capacity is slated to come online in the US, but Tomouk said factories probably won't meet demand until at least 2030, which could push prices up.