The data in this article can be found in our recent “Renewables on the Rise 2024” report. Read more here.

America’s ability produce electricity from renewable energy sources such as wind and solar is growing rapidly. In the past decade, the amount of electricity generated by wind has more than doubled, and solar has exploded to more than eight times the generation we saw ten years ago. These sources have virtually unlimited potential and produce little to no pollution. With costs continuing to drop, these renewables hold promise to replace dirty fossil fuels. Yet, renewable sources still only generate roughly one-fifth of America’s total electricity, meaning there’s still work to be done.

One of the drawbacks of harnessing energy from wind and sunlight is that these sources vary by the hour, day, and season. Humans, on the other hand, have a pretty predictable pattern of energy consumption, which often doesn’t line up perfectly with peak generation from solar and wind. Thankfully, energy storage technology such as battery storage offers a solution.

How does battery storage work?

Energy storage can capture renewable energy produced in excess of the grid’s immediate needs for later use. When demand increases, these storage systems can dispatch the energy to consumers. One type of energy storage is battery energy storage systems, also known as battery storage. This storage technology uses batteries to capture and store electricity, either via a large utility-scale system or smaller residential and commercial batteries.

The primary benefit of battery storage is the flexibility it provides. The technology enables utilities to better meet peak demand, reduces strain on grid infrastructure, and can provide backup power in the case of outages. When paired with renewable energy sources, battery storage can provide these benefits while integrating renewable energy into the grid.

What states are leaders when it comes to battery storage?

Texas and California have been the first early adopters of battery storage technology.

In 2014, total battery storage capacity throughout the US was essentially non-existent. At just 0.16 GW, battery storage was in its infancy and we were unable to retain clean energy and disperse it when needed most. Ten years later, we’ve seen a 97-fold increase to 15.51 GW of capacity–with plenty of potential for continued growth.

Over 70 percent of our battery storage capacity is concentrated in Texas and California. These two states have installed 3.42 and 7.94 GW of capacity respectively, and serve as the indisputable leaders in batter storage development. To put this in perspective, the third ranked state, Arizona, has less than 1 GW of storage capacity. 

Now, other states are showing signs that they are beginning to replicate the success stories of Texas and California. Here are three states that are poised to be emerging leaders when it comes to battery storage, based on recent trends and policies put in place that may spur energy storage growth.

Nevada

Nevada energy storage facts

• Battery storage capacity as of 2023: 0.56 GW
• Capacity added in 2023: 0.36 GW
• Average added capacity per year: 0.18 GW [last 3 yrs]

In 2020, Nevada’s Public Utilities Commission established targets to reach 1 GW of capacity by 2030. This got battery storage deployment moving in Nevada, who has since seen significant growth in the past three years. A year later, SB448 expanded renewable energy tax credits to battery storage. Since then, consistent investment has made sure that the state is on target to reach this goal. Nevada also has led in terms of alternative energy storage options. The Crescent Dunes Solar Energy Plant in Tonopah, Nevada is a first-of-its-kind project that uses thermal energy storage capacity to provide solar energy at night. The project has had some hiccups since its launch in 2016, but nonetheless is an innovative project that is currently providing clean energy at every hour of the day.

Hawaii

Hawaii energy storage facts

• Battery storage capacity as of 2023: 0.36 GW
• Capacity added in 2023: 0.25 GW
• Average added capacity per year: 0.10 GW [last 3 yrs]

While Hawaii has not adopted any specific targets for battery storage, the state has pursued significant investment in the growing technology. Earlier this year, the Kapolei Energy Storage facility on Oahu, Hawaii became operational, adding 185 MW of capacity to the grid. The project is unique due to its size and the fact that it is a standalone battery storage system, demonstrating the inherent value of large scale energy storage. Hawaii’s Battery Bonus program also helps advance battery storage for residential solar systems by providing incentives for homeowners. 

Massachusetts

Massachusetts energy storage facts

• Battery storage capacity as of 2023: 0.26 GW
• Capacity added in 2023: 0.02 GW
• Average added capacity per year: 0.06 GW [last 3 yrs]

In 2018, the Massachusetts State Legislature established the goal of 1,000 MWh of energy storage by the end of 2025. Reports from earlier this year identified 569 MWh of installed energy storage. Growth in battery storage has not been as robust as those in Massachusetts may have hoped, but there is reason to believe more projects are coming soon. In August, Massachusetts, in collaboration with other New England states, received a $389 million grant from the U.S. Department of Energy for investment in energy storage and transmission. 

Why does additional state leadership on energy storage matter?

Nevada, Massachusetts and Hawaii have shown steady growth in battery storage over the last 4 years, demonstrating a commitment to increasing battery storage capacity. By setting statewide targets and establishing or expanding incentive programs, these states have taken significant steps to develop energy storage. At the residential level, battery storage is becoming more affordable and attracting more consumer interest. Cost reductions are also occurring for large scale energy storage. There is no reason for battery storage to be dominated by California and Texas.

Battery storage will be crucial to building the electric grid of the future. This will help us maximize the renewable energy we harness, prepare for problems with grid reliability, and respond to fluctuations in consumer demand. If states like Nevada, Hawaii, and Massachusetts can continue to develop battery storage, they can serve as further proof that this technology has the potential to be a key part of America’s energy system.