Will energy storage become the backbone of the U.S. power grid?

In just a few years, batteries in the United States have evolved from a technological curiosity into a cornerstone of the national power grid. And this is only the beginning — forecasts suggest their role will continue to grow at a staggering pace.

According to data from BloombergNEF, nearly 67 gigawatts of new utility-scale energy storage capacity will be built in the U.S. over the next five years. This represents the ability to store and later discharge up to 284 gigawatt-hours of electricity back into the grid.

If these projections hold, by 2030 the country’s total energy storage capacity will be three times greater than it is today. The sector’s growth trajectory is remarkable — in 2020, total installed battery capacity stood at just 1.5 GW, compared with 27.3 GW at the end of 2024.

Batteries as the foundation of the energy transition

The growth of renewable energy — especially solar — is inseparable from the development of storage technology. In states where solar power dominates, the grid often receives more electricity than it can immediately use. Batteries make it possible to store this surplus and release it later, stabilizing the system and improving efficiency.

California and Texas, leaders in solar energy production, now account for most of the country’s storage installations. The results are already visible — in spring 2024, California’s battery fleet grew large enough to begin displacing evening gas-fired generation, while in Texas, storage systems helped prevent blackouts during two major summer heatwaves.

Growing resistance and safety concerns

The sector’s rapid expansion hasn’t come without controversy. Recently, the cancellation of what would have been New York City’s largest battery storage project — on Staten Island — drew widespread attention following local community protests.

Residents’ concerns focus on potential fire risks, amplified by a January fire at California’s Moss Landing facility. Although that incident was attributed to outdated equipment, it sparked renewed skepticism toward large-scale battery projects.

Trends still point to further growth

Despite local pushback and isolated incidents, there are no signs of a slowdown.

First, the One Big Beautiful Bill Act introduced under the Donald Trump administration left federal incentives for energy storage largely untouched — even though it scaled back some tax breaks for solar and wind farms.

Second, solar power is expanding nationwide, naturally driving demand for storage projects in an increasing number of states.

Finally, the rising U.S. electricity demand means that batteries remain one of the cheapest and fastest ways to add flexible capacity to the grid.

In short, the energy storage revolution in the United States is not just continuing — it’s accelerating.