Guidehouse: Utility-scale energy storage industry ‘blossoming’ in several US states

July 21, 2020
LinkedIn
Twitter
Reddit
Facebook
Email
A CS Energy solar project installed with a 3.8MWh lithium-ion storage solution in Amesbury, Massachusetts. Image: CS Energy.

The US utility-scale energy storage market is projected to maintain its position as the world’s largest and fastest-growing in the coming years, according to a new report from Guidehouse Insights.

Despite the rapid growth, the development of new utility-scale energy storage systems (ESSs) remains highly concentrated in a few states. The market research provider’s report shows California, New York, and Texas lead the top 10 US energy storage markets.

Alex Eller, senior research analyst with Guidehouse Insights, said utility-scale energy storage in the US “has quickly transformed from an expensive and poorly understood niche technology to a major source of new investment”.

“While several states have seen a blossoming storage industry, many others have little to no utility-scale energy storage currently operating,” he said.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“However, this reality is expected to change quickly as the falling costs of batteries and other technologies allow utility-scale energy storage projects to compete directly with conventional fossil fuel systems.”

The report, ‘Leading US States for Utility-Scale Energy Storage’, says the US utility-scale energy storage market is the most diverse in terms of the uses of energy storage and the number of competitors and technologies.

It notes that while the market is highly fragmented, additional states are quickly emerging as strong markets. However, the report warns of varying market structures, regulations and economic applications for projects in different states.

Speaking at the Energy Storage Digital Series online conference hosted by our publisher Solar Media earlier this year, Alex Eller said “one of the most impactful” energy storage policies in the US has been the state-level energy storage deployment targets, which require utilities to procure energy storage.

Currently, the seven states that have these targets in place are: New York, New Jersey, California, Nevada, Massachusetts, Oregon and Virginia.

24 March 2026
Dallas, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2026!

Read Next

January 15, 2026
Developer Apex Clean Energy has announced financing of three utility-scale renewable energy projects across Texas, Ohio, and Illinois, including the Raven Storage project in Wharton County, Texas.
January 15, 2026
San Diego-based home battery storage company NeoVolta has formed NeoVolta Power, a joint venture (JV) to develop a US battery energy storage system (BESS) manufacturing platform in Pendergrass, Georgia.
January 15, 2026
BlackRock-backed developer Akaysha Energy is reportedly considering options to raise additional funds, including selling a minority stake, to support the expansion of its battery energy storage operations.
January 15, 2026
While coal and gas power plants grapple with cost increases, Australia’s battery storage sector delivers a different story, with costs plummeting across all durations.
Premium
January 14, 2026
Energy-Storage.news Premium speaks with Phil Tonkin, field chief technology officer at Dragos, and Dr. Peter Fox-Penner, a Brattle principal, on BESS cybersecurity.