Battery installations in the United States reached a new record in the second quarter of 2026, with 20.2 gigawatt-hours of new storage capacity added. This amount is enough to power about 700,000 homes for a day. The rapid growth is expected to push total battery installations for the year to 71 gigawatt-hours, marking a 20% increase from 2025. This surge is driven by falling battery costs and the need for more energy storage to support the growing share of renewable energy sources like solar and wind power on the electrical grid. Utility-scale battery systems—those with a capacity of more than one gigawatt-hour—were the main contributors to the record growth. Seven of these large-scale installations were completed in the second quarter, according to a report by Benchmark Mineral Intelligence and the Solar Energy Industries Association. Shan Tomouk, an energy storage expert at Benchmark, noted that a few major projects were key to the growth in this category. In addition to utility-scale systems, smaller battery installations known as "behind-the-meter" systems also saw growth. These systems are used by homes and businesses to store energy for later use, often paired with solar panels or to provide backup power during outages. In the commercial sector, data centers accounted for about three-quarters of new behind-the-meter battery installations. However, residential battery installations slowed sharply in 2026, with a projected 16% decline compared to 2025. This decline is largely due to the expiration of a tax credit that previously supported home battery purchases. While residential installations are expected to recover by the end of the decade, tax incentives for nonresidential systems remain in place. Batteries are currently one of the most promising areas in the U.S. energy sector. According to Isshu Kikuma, an analyst at BloombergNEF, energy storage is a strong and growing industry. As the market expands, a notable trend is the push toward U.S.-made battery technology. While most battery cells used in new installations are still produced in China, some systems are now assembled in the U.S. New tariffs on Chinese imports and updated tax credit rules are encouraging domestic manufacturing. However, experts predict that it will take until 2030 or later for U.S. production to meet demand, which could lead to a slight increase in battery prices.