2026 Energy Storage Policy & Market Roadmap
In our eight-chapter report, our lawyers analyze the key trade, financing, regulatory, investment, and policy developments shaping the energy storage market in 2026 and beyond and outline practical considerations for managing risk and positioning projects for long-term success.
EXPLORE ALL EIGHT CHAPTERS
Chapter 1: Utility-Scale Energy Storage Procurements in 2026: Contracting and Risk Allocation
Chapter 2: Federal Regulatory Outlook for Electric Storage, QFs, and Inverter-Based Resources
Chapter 3: State Energy Storage Policy Trends for 2026
Chapter 4: Project Financing Trends for Global Energy Storage Projects in 2026 and Beyond
Chapter 5: How ‘FEOC’ Rules Are Reshaping Energy Storage Tax Credit Eligibility
Chapter 6: Tariffs and Trade Risk in Energy Storage Projects: 2026 and Beyond
Chapter 7: EU and UK Energy Storage Regulation in 2026 and Beyond
Chapter 8: The Next Phase of Battery Storage Investment in 2026 and Beyond
EXECUTIVE SUMMARY
The global energy storage market continues to mature in 2026, transitioning from a phase of rapid buildout to one increasingly characterized by large-scale infrastructure investment and integration into grid planning. Development activity remains strong: approximately 92 GW and 247 GWh of storage were installed in 2025, approximately 23% more than in 2024, with over 123 GW and 360 GWh expected in 2026. Of this, approximately 58 GWh of energy storage were installed in the United States in 2025, a 30% increase over 2024. Industry forecasts project that the United States could deploy more than 90 GW of additional storage capacity between 2025 and 2030, driven by rising electricity demand, continued renewable generation growth, and a heightened need for flexible grid resources.
Despite changes in US trade and tax policy, battery storage is being deployed steadily alongside wind, solar, and other renewable generation assets. At the same time, energy storage is playing an expanding role in grid reliability planning and large-load development, including the quickly growing power demand associated with data centers and artificial intelligence computing infrastructure, which demand increasingly reliable sources of energy. In many regions, batteries are being deployed to not only support renewable integration but also address transmission congestion, defer infrastructure upgrades, and provide fast-responding reliability services to system operators.
Concurrently, the sector faces a more complex risk environment. Trade policy developments, supply chain scrutiny, and evolving domestic content requirements are reshaping procurement strategies for battery energy storage system projects. Lenders and investors are tightening underwriting standards as the market matures, while regulators are expanding oversight of storage participation in wholesale markets and resource adequacy frameworks. Policymakers in the United States, European Union, and United Kingdom are also advancing industrial and compliance frameworks that place greater emphasis on supply chain resilience, domestic manufacturing, and strategic sourcing of critical materials.
Against this backdrop, a new project’s success is becoming increasingly contingent on early procurement planning, disciplined contractual risk allocation, careful financing structuring, and proactive regulatory compliance. Developers, sponsors, and capital providers must navigate ever-changing tariff exposure, heightened diligence expectations, expanding reliability standards, and shifting revenue models, all while continuing to capitalize on storage’s central role in renewable integration, grid stability, and large-load growth.
