U.S. developers and power plant owners plan to significantly increase utility-scale battery storage over the next three years, reaching 30 GW by the end of 2025, based on the latest reporting from the U.S. Energy Information Administration (EIA).

As of October 2022, 7.8 GW of utility-scale battery storage was operating in the United States. Developers and power plant operators told EIA they expect to be using 1.4 GW more battery capacity by the end of the year. From 2023 to 2025, they expect to add another 20.8 GW of capacity.

More than 75% of the 20.8 GW of utility-scale battery capacity that owners and operators reported they plan to install from 2022 to 2025 is located in Texas (7.9 GW) and California (7.6 GW).

“The large amount of existing and planned solar and wind capacity in California and Texas present a growing need for battery storage,” said EIA, noting that more utility-scale solar capacity is located in California than in any other state, with more capacity additions on the way between 2023 and 2025.

The Inflation Reduction Act (IRA) signed into law in August is expected to make large battery storage projects in the U.S. significantly more competitive. Standalone storage systems would now be eligible for a 30 percent investment tax credit (ITC) — and up to 70 percent with additional incentives.

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