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Battery Storage Transforms U.S. Power Grid with Rapid Growth and Cost Efficiency

Storage

Business Honor
24 June, 2025

Declining costs and rising capacity drive battery storage adoption for cleaner, reliable energy.

Battery storage is transforming the management of electricity in the United States at an accelerating rate. With regular price drops and rises in energy density, battery deployments continue to break new records every month. Utilities have started rolling out batteries in their thousands to store day-time solar power generated and feed it back to the grid during peak demand, stabilizing the grid and saving costs.

Previously, battery storage contributed a minimal amount to the U.S. power grid relative to solar and wind energy. Solar capacity was 30 times greater and wind capacity 74 times greater than battery capacity in 2020. As of April 2025, battery capacity has significantly increased and is now merely five times lower than both solar and wind combined. Utilities are investing increasingly in battery systems because they are flexible and help regulate electricity demand and supply.

California leads in battery storage with approximately 42% of the whole U.S. capacity. California Independent System Operator (CAISO) makes extensive use of batteries to assist in solar backup, especially during late evening peak demands when solar generation is low but demand is high. During a recent summer evening, batteries provided approximately 26% of CAISO's power, outpacing natural gas and other sources.

Texas is also quickly growing its battery storage, increasing capacity in 2024 more than any other state. With Arizona, Nevada, and New Mexico, these states are coupling expanding solar farms with batteries to optimize energy efficiency and reliability.

Battery storage is also becoming increasingly affordable, with prices continuing to decline. According to reports, solar-plus-battery power is as cheap as natural gas and coal-fired power plants. Plus, batteries take less time to deploy than conventional power plants, which are a tempting choice for utilities.

As battery storage expands, it will have a crucial role to play in building a cleaner, more resilient, and flexible energy system throughout the U.S.