Overview

• Batteries are on track to supply roughly 25% of new U.S. grid capacity in 2025, with second‑quarter installations up 63% year over year, according to EIA and ACP data.
• The One Big Beautiful Bill kept the storage tax credit through 2033 but added FEOC sourcing thresholds that start at 55% non‑FEOC spend in 2026 and climb to 75% by decade’s end.
• Developers are buying equipment early to safe harbor projects and secure qualifying components, which is temporarily tightening supply chains, especially for domestic parts.
• BloombergNEF estimates FEOC restrictions could reduce U.S. grid‑battery installations by about 15% over the next decade compared with prior outlooks.
• Energy Secretary Chris Wright has questioned storage economics, yet developers report batteries are increasingly displacing planned gas peakers and supporting data center power needs.