Find out what happened in the markets today - and why you should care - with the free Daily Brief newsletter.

The US energy storage market is booming, with Q3 installations hitting an all-time high thanks to major expansions in Texas and California.

What does this mean?

The latest report from Wood Mackenzie and the American Clean Power Association reveals the US energy storage market hit new records in Q3 with 3,806 MW installed and 9,931 MWh deployed. This marks an 80% increase in installations and a 58% rise in deployments from the same time last year. As the need for renewable energy grows, the Energy Department emphasizes expanding transmission capacity by 2050 to support the projected doubling of grid-scale storage to 63.7 GW by 2028. With residential installations also setting records, Texas and California are leading the charge. However, Wood Mackenzie cautions growth might slow to an annual average of 10% from 2025 due to development constraints.

This surge in energy storage is reshaping the landscape for investors, with Texas and California at the forefront of strategic development. Notably, Texas added 1.7 GW and California 6 GWh in recent months. The booming residential market, adding 346 MW last quarter, reflects wider adoption of renewables, which may spark opportunities across the sector. However, potential changes in tax incentives or tariffs could impact future projects, so stakeholders should stay informed.

The bigger picture: Laying the groundwork for a green future.

Looking ahead, grid-scale energy storage is set to more than double by 2028, bolstering the shift toward a sustainable energy economy. This monumental growth supports broader climate goals, but also highlights the importance of enhancing national transmission capacity. The anticipated slowdown in growth underscores the need for strategic policy and infrastructure plans to maintain momentum. As renewable energy becomes more integral, the dynamics can vastly impact economic strategies worldwide.