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

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.

15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

September 4, 2026
East Point Energy, owned by Norwegian state-owned energy company Equinor has completed construction and started operations at the 100MW/200MWh Citrus Flatts energy storage project in Harlingen, Texas, US.
September 4, 2026
A roundup of user-posted analysis, views and unofficial news from across the industry this past week, this time looking at this week’s sabotage attack on the German grid, BESS revenues and electricity market activity, CATL’s LFP price cut and various non-lithium news.
September 3, 2026
Bulgaria now has a world-leading amount of battery storage capacity relative to energy system despite a period of political turnover, although those assets are now cannibalising the revenues which attracted investment in the first place.
September 3, 2026
Developer-operator MN8 Energy, zinc hybrid cathode battery and storage system maker Eos Energy Enterprises, and tech giant Google are backing a multi-technology renewables project on the PJM grid in the US.
September 2, 2026
ONE Nuclear Energy has executed a binding letter of intent to develop a 2.88GW natural gas plant and 700MW/2.88GWh energy storage system, co-located with a high-capacity data centre campus.