Battery storage installations in the U.S. are projected to surge to 204 gigawatts by 2035, a dramatic jump from the 31 gigawatts deployed through 2024. Equal to more than 800 gigawatt-hours of capacity, the forecast marks a sharp break from the challenges facing America’s green energy segment. Projections from BloombergNEF show battery storage will outperform prior expectations even after the “One Big Beautiful Bill” eliminated numerous tax credits in July.
While energy storage forecasts now run 25% over than projections issued immediately after OBBB passage and 6% above pre-OBBB estimates, wind and solar projections have cratered, with wind deployment expectations down 48% since early 2025. According to BloombergNEF analyst Isshu Kikuma, the divergence is mostly due to policy timing. Storage will retain full tax credit value through 2033 before declining to 75% in 2034 and 50% in 2035, compared to solar and wind projects that face compressed tax credit qualification windows.
Faster than anticipated ramping up of domestic manufacturing coupled with the energy storage segment’s quick reaction to the policy changes have also led to higher forecasts. Kikuma notes that production capacity for utility-scale battery systems has more than doubled from 4 gigawatt-hours in 2024 to over 10 gigawatt-hours currently, with projections pointing to 60 gigawatt-hours by 2029.
Battery manufacturers are also repurposing electric vehicle production lines for grid storage, he says, a process that takes three to twelve months and requires both chemistry adjustments and equipment cleaning.
General Motors is partnering with Redwood Materials to develop grid-scale storage using batteries originally destined for vehicles while South Korean SK is set to begin supplying storage batteries to Flatiron Energy Development. Additionally, LG Energy converted portions of its Michigan facility from vehicle batteries to stationary storage in June. Kikuma said the transition materialized much faster than expected.
Developers are now rushing to stockpile components before tariff increases and Foreign Entity of Concern restrictions impact the Chinese imports that dominate supply chains. Non-EV battery tariffs from China have climbed 30 percentage points since President Trump took office. Import costs also face another jump in 2026 when a 25% Biden administration tariff takes effect, adding urgency to current procurement efforts.
The storage sector’s resilience reflects both favorable policy treatment and industry flexibility. Extended tax credit timelines give developers breathing room that solar and wind projects did not receive. Manufacturing adaptability lets producers shift capacity from struggling automotive markets to growing grid applications without building new facilities. The combination allows domestic production to expand at unprecedented speeds.
Underlying energy storage fundamentals remain strong as policy uncertainty affects other renewable sectors. Data center growth, manufacturing electrification, and transportation infrastructure drive load increases that utilities must meet quickly. Storage will likely continue to outpace wind and solar in the absence of disruptive supply policy shifts.
Other renewable energy systems, such as that in which companies like EverGen Infrastructure Corp. (TSX.V: EVGN) (OTCQX: EVGIF) operate, are also scaling up to add impetus to the renewable energy transition despite the regulatory headwinds they face in North America.
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