In Q1 2026, the U.S. energy storage market set a new first-quarter record, with nearly 10 GWh / 6.77 GW of new battery energy storage systems (BESS) deployed-up 32% year-over-year, though down 45% from Q4 due to normal seasonality. SEIA data highlights a widening split across segments: utility-scale storage continued its rapid expansion, while residential installations fell 28% year-over-year amid demand pull-forward tied to anticipated federal incentive changes. Commercial & industrial (C&I) storage stood out with 54% year-over-year growth, supported by rising electricity demand from data centers. The outlook points to policy-driven residential volatility, continued momentum in utility-scale projects, and strong C&I drivers shaping the next phase of growth.
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