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MIT Technology Review·

US Battery Installations Hit Record 20.2 GWh in Q2 2026

US battery installations surge, but home systems take a hit

TL;DR

Battery installations in the US hit a new record in Q2 2026, with 20.2 GWh of new capacity. This growth is driven by cheaper batteries and the need for energy storage as renewables are added to the grid. However, residential battery installations are projected to drop by 16% in 2026.

Battery installations in the US hit a new record in Q2 2026, with 20.2 gigawatt-hours of new capacity. This surge is putting the country on track to see 71 gigawatt-hours of batteries installed in 2026, a 20% increase over last year. The growth is being driven by cheaper batteries and an urgent need for more energy storage capacity as renewables are added to the grid. However, residential battery installations are projected to drop by 16% in 2026, largely due to the end of a tax credit that helped subsidize home battery systems. Data centers are leading the way in the behind-the-meter category, making up about three-quarters of new batteries in the commercial sector. The battery market is expected to continue growing, with a trend toward US-made technology, though manufacturing capacity won't meet demand until at least 2030.

US Battery Installations Hit Record 20.2 GWh in Q2 2026 — MIT Technology Review

Key Points

1

Battery installations in the US hit a new record in Q2 2026, with 20.2 gigawatt-hours of new capacity.

2

The surge in battery installations is putting the country on track to see 71 gigawatt-hours of batteries installed in 2026, a 20% increase over last year.

3

Data centers are leading the way in behind-the-meter battery installations, making up about three-quarters of new batteries in the commercial sector.

4

Residential battery installations are projected to drop by 16% in 2026, largely due to the end of a tax credit that helped subsidize home battery systems.

5

The battery market is expected to continue growing, with a trend toward US-made technology, though manufacturing capacity won't meet demand until at least 2030.

Why It Matters

If you're running a data center, you're likely seeing a surge in behind-the-meter battery installations, with data centers making up about three-quarters of new batteries in the commercial sector. However, residential battery installations are expected to drop by 16% in 2026, largely due to the end of a tax credit that helped subsidize home battery systems. This trend is expected to continue until at least 2030, as manufacturing capacity for US-made batteries is ramping up.

battery-installationsenergy-storagerenewablesdata-centersresidential-batteries

Frequently Asked Questions

Why does this matter?

If you're running a data center, you're likely seeing a surge in behind-the-meter battery installations, with data centers making up about three-quarters of new batteries in the commercial sector. However, residential battery installations are expected to drop by 16% in 2026, largely due to the end of a tax credit that helped subsidize home battery systems. This trend is expected to continue until at least 2030, as manufacturing capacity for US-made batteries is ramping up.

What happened?

Battery installations in the US hit a new record in Q2 2026, with 20.2 GWh of new capacity. This growth is driven by cheaper batteries and the need for energy storage as renewables are added to the grid. However, residential battery installations are projected to drop by 16% in 2026.

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