Energy Storage Installations Boom in 2025, But 2026 Faces Challenges
Energy storage installations are booming, with 2025 set to be a record year for storage near me. However, global trade uncertainty and new equipment sourcing restrictions may cause a 12% drop in 2026. Meanwhile, innovative financing models and favorable policies are driving growth in residential storage units near me.
In Q2 2025, utility-scale battery energy storage deployments surged to 4.9 GW/15 GWh, a staggering 63% increase from the previous year. California, Texas, and Arizona led the way, accounting for 75% of installed capacity. This quarter also saw GridStor acquire the 100 MW/400 MWh White Tank project in Arizona, aiming for an early 2027 commissioning.
Looking ahead, the residential energy storage market is expected to grow by 96% in capacity and 41% in installations by 2029. Emerging ownership and financing models, such as prepaid lease financing, are set to boost this growth. States with favorable storage policies and high load growth, like Arizona, will be strong markets for public storage in the near term. Despite these positive trends, 2026 may see a decline in utility-scale deployments due to unfavorable federal policy changes.
2025 is shaping up to be a banner year for energy storage, with record-breaking deployments across all segments. However, the future holds both opportunities and challenges. Innovative financing models and strong state policies offer growth prospects, while global trade uncertainty and policy changes pose potential hurdles.
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