Texas Is About To Overtake California In Battery Storage

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by BeauHD

February 24, 2026

AI-Generated Deep Dive Summary

The U.S. battery storage industry reached a historic milestone in 2025, installing a record-breaking 57.6 GWh of capacity. Texas is on track to surpass California as the nation's leading battery storage market by 2026, driven by significant growth across utility-scale, commercial, and residential sectors. By the end of 2025, the U.S. had deployed 137 GWh of utility-scale storage, along with 19 GWh for commercial systems and 9 GWh for residential use. This represents a quadrupling of installations compared to three years prior, with analysts projecting over 600 GWh of total capacity by 2030. Despite challenges from the Trump administration's targeting of clean energy industries, the sector remains poised for rapid expansion. The shift in battery storage dominance reflects broader trends in energy policy and market dynamics. Texas, a red state, has emerged as a key player, with two-thirds of utility-scale installations in 2025 located in such states. Standalone battery projects accounted for nearly 30 GWh of new capacity, while solar-plus-storage systems added an additional 20 GWh. Residential storage deployments also surged by 51% to reach 3.1 GWh last year. Virtual power plant programs in Texas and other states are accelerating adoption by lowering costs and addressing grid strain during peak demand. The supply chain is adapting to meet the growing demand, with battery cell manufacturers pivoting production lines from electric vehicles to dedicated stationary storage. By 2025, U.S. factories had achieved a manufacturing capacity of 69.4 GWh annually for energy storage systems. Lithium-ion cell production for stationary storage exceeded 21 GWh, enough to power Houston overnight. This shift underscores the industry's rapid evolution and its potential to reshape the national energy landscape. The rise of Texas as a battery storage leader highlights the intersection of technology, policy, and market forces. The state's unique combination of low regulation, abundant renewable resources, and innovative programs is driving adoption. Virtual power plants and other grid

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Originally published on Slashdot on 2/24/2026