The U.S. power storage market continued regular progress in Q3 2025, with 5.3 GW put in nationwide, pushing 2025 year-to-date totals forward of mixed 2024’s installations in keeping with the newest “U.S. Energy Storage Monitor” report launched in the present day by the American Clear Energy Affiliation (ACP) and Wooden Mackenzie. This ahead momentum continued regardless of evolving provide chains and ongoing coverage uncertainty.
General Q3 installations elevated 31% year-over-year, although the market declined 6% in comparison with Q2 2025’s file highs. The utility-scale storage section drove progress with 4.6 GW put in in Q3, a 27% improve year-over-year, with 82% of put in capability concentrated in Texas and California.
The residential storage market continued its growth for the sixth consecutive quarter, putting in 647 MW in Q3, a 70% year-over-year improve. California, Arizona and Illinois led deployments as attachment charges reached new highs. Wooden Mackenzie tasks This autumn 2025 will set a file for the residential sector as clients speed up installations forward of the Sec. 25D ITC expiration.
The group, industrial and industrial (CCI) section put in 33 MW in Q3, down 8% year-over-year. California captured 54% of installations with 17.8 MW, whereas Illinois emerged as a key progress market alongside Massachusetts, pushed by state rebate packages and group storage tasks.
“Sturdy progress within the U.S. power storage market displays a easy actuality: Assembly rising demand and holding the grid dependable more and more requires storage,” mentioned John Hensley, ACP Senior Vice President of Markets and Coverage Evaluation. “These installations ship the versatile, dependable grid help America wants in the present day, boosting reliability and holding energy payments in examine.”
Though home battery manufacturing continues to ramp as much as meet new tariffs and non-foreign entities of concern (FEOC) necessities for the ITC, Wooden Mackenzie tasks near-term provide chain changes and constraints will drive an 11% contraction within the U.S. utility-scale storage market in 2026 and an 8% decline in 2027. Nevertheless, the market is positioned for sturdy restoration, with double-digit year-over-year progress projected for 2028 and 2029 as home manufacturing capability comes on-line.
General, Wooden Mackenzie forecasts almost 93 GW of storage might be put in throughout the USA over the subsequent 5 years. Notably, the utility-scale five-year forecast has elevated 15% in comparison with pre-One Large Stunning Invoice Act (OBBBA) projections, whereas the CCI section is projected to develop 23% from 2025 to 2029.
“Regardless of new federal insurance policies and tariffs, the market fundamentals stay exceptionally sturdy,” mentioned Allison Feeney, analysis analyst at Wooden Mackenzie. “Continued entry to the ITC, cost-competitive home cell manufacturing, service provider income potential, state coverage and cargo progress are driving our elevated five-year outlook.”
California’s Internet Billing Tariff (NBT), Massachusetts’ Photo voltaic Massachusetts Renewable Goal (SMART) 3.0 and Illinois’ rebate packages are sustaining regular CCI deployment via 2029. In the meantime, the residential section’s shift towards third-party possession fashions — which accounted for 57% of the market in Q3 2025 — helps to mitigate the impression of the Sec. 25D expiration.
Allison Weis, International Head of Storage at Wooden Mackenzie, mentioned “We’re seeing states step up with modern packages, grids more and more reliant on storage for reliability and prices at file lows. The trade’s capability to navigate these challenges and keep a 15% improve in our five-year utility forecast for the reason that passage of the OBBA demonstrates that storage has advanced from an rising expertise to a vital grid useful resource.”
Information merchandise from Wooden Mackenzie
