The United States installed a record 20.2 GWh of new energy storage capacity in the second quarter of 2026, the largest quarterly deployment on record, according to the US Energy Storage Market Outlook Q3 2026 (ESMO), released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence. The record quarter brought total new storage installations in the first half of the year to 30.8 GWh.

Utility-scale energy storage capacity in the US has nearly doubled during the first 18 months of the Trump administration, rising from 88 GWh to 165 GWh. According to the report, grid operators, utilities and energy buyers are increasingly turning to storage to strengthen grid reliability and respond to rising electricity demand.

The strong deployment has also prompted an upward revision to the market outlook. The report has increased its forecast for cumulative energy storage capacity through 2030 by 11.5%, to 683 GWh. The upward revision comes as the industry continues to set deployment records, with more than 10% of all energy storage capacity currently installed in the US coming online in Q2 alone.

“This record growth highlights that storage is a powerful reliability tool that strengthens our energy security, meets rising demand and puts downward pressure on electricity bills,” said Tim Pawlenty, president and CEO of SEIA.

Arizona leads quarterly deployment

More than 74% of the energy storage capacity installed in Q2 was deployed in states won by President Donald Trump in the 2024 election, led largely by Arizona, Texas and Utah.

Arizona added 6.2 GWh of new storage capacity in Q2, the strongest quarterly deployment recorded by any US state. The state, which has the country's fourth-largest solar market, is increasingly pairing its solar resources with storage to capture more electricity generated locally, meet rising demand and help keep electricity costs down.

“Energy storage is no longer just a California and Texas story anymore,” said Shan Tomouk, BESS & Energy Lead at Benchmark Minerals. The company is seeing strong pipeline growth in Arizona, Nevada, Oregon, Colorado and several other states, he added.

Texas and California installed 3.8 GWh and 3.6 GWh of storage, respectively, during the second quarter.

Storage gains importance during periods of peak demand

Battery energy storage supplied more electricity to the US grid during the first eight months of 2026 than throughout the whole of 2025. During periods of extreme heat in states such as Texas and California, storage has helped provide electricity when demand is highest, supporting grid reliability and helping protect consumers from price spikes.

Utility-scale projects accounted for the vast majority of Q2 installations, with 17.9 GWh deployed. Commercial and industrial storage followed with 1.8 GWh, while residential storage accounted for 657 MWh.

US reaches new battery manufacturing records

The country also reached new records for domestic battery manufacturing capacity during the quarter. Two new battery cell manufacturing facilities opened in Ohio and Tennessee, alongside a new 50 GWh battery module manufacturing facility in Texas.

Together, these facilities bring US battery cell and module manufacturing capacity to record levels, ensuring that a greater share of the batteries being deployed to strengthen the grid are manufactured domestically.