U.S. energy storage hit new highs in Q1 2025, but developers are navigating tariffs, price spikes, and OBBB uncertainty heading into the second half.
Lightshift Energy and Wakefield Municipal Gas & Light Commission partnered on an energy storage project to enhance resilience of its schools, while also saving as much as $20 million for customers.
Solar and wind generated 40.2% of the ERCOT grid’s electricity this year through June. When coal plants shut down for unexpected maintenance, solar and wind stepped in, providing about 50% of generation during peak summer demand in the highest electricity consuming state in the union.
Existing battery projects in California and Texas see upside, while hybrid storage bets in the Midcontinent Independent System Operator (MISO) territory and the Southeast face shrinking margins under the revised tax credit rules.
The data company says investments of $1.2 trillion in battery energy storage systems (BESS) will be required to support the installation of over 5.9 TW of new wind and solar capacity globally through 2034.
The electric vehicle company reported flat energy storage growth quarter over quarter but nearly 50% growth year to date compared with 2024. Tesla has deployed 37.9 GWh over the past four quarters and is approaching 100 GWh total deployed.
The second-life project represents the second largest deployment in North America, and the largest battery-powered microgrid.
Not everyone sees ERCOT’s battery glut as a crisis. Some, including a storage-only independent power producer, see it as storage is finally doing what it promised.
The Buckeye, Ariz. project is expected to generate enough electricity to power about 40,000 homes per year.
The rapid expansion is partially due to falling manufacturing costs, a trend that is expected to continue over the next five to seven years, said Rystad Energy.
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