American energy storage developers achieved a milestone in the opening months of 2026, adding 9.7 gigawatt-hours of new capacity during the first quarter – setting a new record for that time period, according to an industry analysis released Thursday.
The sector experienced a 32% expansion compared to the same quarter last year, even as the industry contends with federal policies that developers claim are hampering clean energy progress, according to findings from the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence.
According to the SEIA, the increased demand stems from data center requirements, fluctuating power costs, and global supply chain disruptions affecting gas and turbine equipment.
Leading tech corporations such as Google and Meta have signed agreements this year to secure tens of thousands of megawatt-hours worth of storage systems to support data centers required for artificial intelligence operations.
OBSTACLES FOR RENEWABLE SECTOR
The solar sector confronts tariff challenges and halted approvals for large-scale developments under the Trump administration, reflecting priorities centered on oil, gas, coal and nuclear power sources.
According to the analysis, 467 solar and storage developments are awaiting permits and may experience postponements or terminations.
“If federal permitting bottlenecks persist, household electric bills will continue to rise and China will surge further ahead in the race for AI leadership,” the report said.
The analysis projects over 610 GWh in storage expansion through 2030.
“Energy storage’s remarkable first quarter only underscores the fundamental values of this technology,” said Darren Van’t Hof, SEIA’s interim president and chief executive.
Sufficient energy storage capabilities can protect customers from fuel cost volatility, contribute to reduced electricity expenses and enhance power grid dependability, he explained.
Texas, Arizona and California topped utility-scale deployments during the quarter. More than 70% of utility-scale storage systems installed during this period were located in states won by U.S. President Donald Trump.
Large-scale utility projects represented 7.8 GWh of first-quarter deployments; commercial and industrial installations contributed 648 megawatt-hours while residential systems added 515 MWh.
