The US battery energy storage market grew 60% in 2024 and is on track to accelerate further despite signs of reduced federal support for renewables, according to Rystad Energy.
Installations rose from 6GW in 2023 to 10GW in 2024, with an annual rate of 16GW expected by early 2026, driven by falling battery costs and demand for grid resilience.
Texas overtook California last year as the largest BESS market, with 4GW installed and 7GW in inventory, suggesting further growth.
Arizona is leading expansion in emerging markets, where national BESS inventory has more than doubled in the past year to 7GW.
Batteries now meet 13% of California’s power demand during discharge hours, with peak contributions reaching 30%, according to Rystad.
“Whether it is theoretically possible to have all renewable plus BESS systems in CAISO… remains to be seen,” said Artem Abramov, head of new energies at Rystad Energy.
Renewables now meet more than 40% of CAISO’s annual demand, up from 30% in 2021, with import dependence dropping from 27% to 16% over four years.