Batteries just broke another record in the US

Summarized from technologyreview.com


According to a recent report, battery installations in the United States reached a new record in the second quarter of 2026, with 20.2 gigawatt-hours of new capacity coming online. This capacity is sufficient to meet the daily electricity needs of approximately 700,000 homes. The report, published by Benchmark Mineral Intelligence and the Solar Energy Industries Association, indicates that this surge positions the country on track to install 71 gigawatt-hours of batteries in 2026, representing a 20% increase over the previous year. The growth is attributed to a combination of declining battery costs and the increasing demand for energy storage capacity as renewable energy sources such as solar and onshore wind are integrated into the grid.

The record-setting quarter was primarily driven by the deployment of massive, utility-scale battery systems, which accounted for the majority of new installations. Seven new gigascale battery installations (each with a capacity exceeding one gigawatt-hour) were commissioned during this period. Additionally, there was growth in behind-the-meter battery installations, which include residential and industrial storage systems typically owned and operated by homeowners or businesses. However, the report notes a projected 16% decline in residential battery installations in 2026 compared to the previous year, largely due to the expiration of a tax credit that subsidized home battery systems in 2025. Despite this slowdown, energy storage remains a robust sector in the United States, with analysts anticipating a recovery in residential installations by the end of the decade and the continued survival of tax credits for nonresidential batteries. Furthermore, a notable trend is the shift toward domestically manufactured battery technology, as tariffs and new tax credit requirements aim to reduce reliance on Chinese imports, although increased domestic production is not expected to meet demand until at least 2030, potentially leading to higher prices in the interim.