Each quarter, Wood Mackenzie Power & Renewables, and the American Clean Power Association (ACP) release the “U.S. Energy Storage Monitor,” which contains new industry data to provide a timely analysis of energy storage in the U.S. The Q1 2026 report also contains the “2025 Year in Review.”

Installations

In terms of installations, according to the report, the U.S. installed a record 18.9 GW / 51 GWh of storage in 2025, a 52 percent increase compared to 2024. Q4 2025 also set a new quarterly record, with 5.8 GW / 14.8 GWh deployed.

The utility-scale segment experienced continued growth with 4.9 GW installed in Q4 2025, driven by expansion into emerging markets. The CCI (community, commercial, and industrial) segment hit 77 MW in Q4 2025, as state policy supported growth. The residential storage market crossed the 1 GWh quarterly mark as the expiring investment tax credit (ITC) accelerated year-end demand.

Forecast

The report forecasts that the U.S. will add roughly one half TWh of storage from 2026 to 2031, a 250 percent increase compared to 2020–2025.

The utility-scale segment is expected to grow an average of 16 percent each year, driven by federal incentives and rising peak demand. Annual CCI installations are expected to increase 39 percent from 2025 to 2030, as state programs, tax credits, and grid needs support growth. After a strong 2025 as customers took advantage of the Section 25D ITC, residential storage is expected to contract two percent in 2026.

Scenarios

According to the report, the Q1 2026 high and low case scenarios result in a 52 GW range of possible installations, given ongoing uncertainty on load growth, FEOC (Foreign Entity of Concern) guidance and other policies.

(FEOC is a designation under U.S. law, often tied to China, Russia, Iran, or North Korea, that disqualifies companies from receiving clean energy tax credits if they have specific ties to these nations. Effective from 2026, these rules target supply chain, manufacturing, and technology ownership to enhance national security.)

The low case results in 17 percent less capacity than the base case as stricter FEOC guidance, lower demand, and development barriers slow growth.

The high case includes 28 GW of upside if final FEOC guidance is workable for developers and manufacturers, if trade barriers ease, and if peak demand strengthens.