US grid battery capacity hits record
The US power sector added a record 20.2 gigawatt-hours of battery storage in Q2 2024, driven by falling costs, large projects, and federal tax incentives.
The US power sector installed more battery storage capacity in the second quarter of 2024 than in any previous quarter. A new report from the Solar Energy Industries Association and Benchmark Mineral Intelligence details the record 20.2 gigawatt-hours of capacity added from April through June.
This quarterly addition represents one-tenth of the nation's entire existing grid storage capacity. Seven of the newly completed projects each provided at least 1 gigawatt-hour of storage, highlighting a trend toward massive battery installations.
Capacity and grid impact
The newly installed capacity can deliver 6.7 gigawatts of instantaneous power to the grid. This output is roughly equivalent to the power from seven large, traditional nuclear reactors. The key difference is speed. These batteries were built far more quickly than nuclear plants, which typically require over a decade for construction.
Batteries offer a flexible solution for grids under strain. They can be built rapidly and located closer to where electricity is consumed, unlike many large fossil-fuel power plants. This makes them particularly attractive in regions with tight power supplies.
Drivers of battery growth
Several factors are fueling the storage boom. Plummeting costs for lithium-ion cells over the past decade have been fundamental. Growing developer familiarity with the technology has also played a role.
The report's outlook is so strong that Benchmark Mineral Intelligence increased its forecast for cumulative US battery installations through 2030 by 11.5%. This revision came just three months after its previous estimate.
Federal policy has provided a stable foundation. The Trump administration revoked subsidies for wind and solar power last year but maintained Biden-era tax incentives for energy storage. The report notes that large-scale storage capacity nearly doubled during the first year and a half of the second Trump term.
| Project Characteristic | Figure from Source |
|---|---|
| New capacity added in Q2 2024 | 20.2 gigawatt-hours |
| Portion of national grid storage capacity this represents | One-tenth |
| Number of new projects with ≥1 GWh capacity | 7 |
| Instantaneous power output from new capacity | 6.7 gigawatts |
| Storage capacity built alongside solar plants | 44% |
| Q2 additions in states that voted for Trump in 2020 | 74% |
Geographic and sectoral demand
Demand for grid batteries is widespread. The report specifically mentions California, Texas, the Southeast, the mid-Atlantic, and the Northeast as active regions. It states that 74% of the second-quarter storage additions were built in states that voted for Donald Trump in the 2020 election, including Texas, Utah, and Arizona.
Different sectors are driving adoption. Developers of artificial intelligence data centers are turning to batteries to guarantee power during peak demand periods. In the power sector, 44% of the new storage capacity was paired with solar plants, allowing solar energy to be dispatched when needed most.
Government and industry support
The current administration has recently taken more active steps to support the industry. The Department of Energy provided a $490 million loan for a battery project in Puerto Rico. It is also funding efforts to reshore the supply chain for critical minerals used in battery manufacturing.
Energy Secretary Chris Wright, a frequent critic of solar power on his official platforms, recently visited the Maine site of a planned novel iron-air battery from Form Energy. That project is receiving DOE grant funding.
Julian Spector of Canary Media, reporting on the findings, cautions that attributing the boom solely to current politics overlooks a longer history. He points to years of technological development, early mandates in California, risky investments by Texas wildcatters, and massive factory construction by companies like LG and Tesla. All that groundwork is now resulting in unprecedented installation scales.
