US sees record Q1 battery storage installations of 3.3 GW/8.4 GWh

The US installed 3.3 GW/8.4 GWh of battery energy storage systems in the first quarter of 2026, marking a record for an opening quarter, 54% above the previous such high, according to the US Energy Storage Monitor report unveiled today by the American Clean Power Association (ACP) and Wood Mackenzie.

All segments registered record first quarter installations. The utility-scale market added more than 2.3 GW/6.8 GWh, boosted by 2025 project delays as developers’ focus in the second half of 2025 was on meeting tax incentive eligibility deadlines for pipeline projects. The residential installations totalled 1.3 GWh, up 86% from a year ago and 5% from the previous quarter, driven by projects launched at the end of 2025 to capture the expiring Section 25D tax credit. The community, commercial and industrial (CCI) segment deployed 97.7 MW, up 27% quarter-over-quarter.

According to the report, cumulative battery energy storage installations are expected to reach 200 GW/655 GWh by 2031, representing a 275% increase in cumulative capacity over the next six years. Utility-scale is to see the strongest expansion, while residential is seen to decline 5% in 2026.

The analyst firm expects that, after the entry of foreign entity of concern (FEOC) restrictions into force, securing FEOC-compliant equipment and safe harboured capacity to be a bottleneck over the next two to four years.

"Developers with mature pipelines and available capital rushed to safe harbour their pipelines in late 2025 and will now work to secure long-term supply agreements with domestic manufacturers for the rest of their pipeline. Lower tier developers either face acquisition or turn to low-cost Chinese OEMs. Battery energy storage cell manufacturers will work to secure limited FEOC-compliant cell components to qualify for the 45X tax credit, a key factor in maintaining cost competitiveness with China," commented Allison Weis, Global Head of Storage at Wood Mackenzie.