Lower energy costs, community benefits drive 30% battery growth rate: RMI — SkimNews
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- RMI projects 30% annual U.S. battery storage deployment growth over the next five years, citing Wood Mackenzie's 2024 forecast issued while the Inflation Reduction Act was still fully in effect.
- Wood Mackenzie cut its five-year utility-scale battery deployment forecast to 16% earlier this year, with its latest projection seeing 2026 flatlining and only 8% growth through 2031.
- In California's 2024 grid, energy storage supplied 13–19% of generation during the tightest hours, avoiding more than $29 million in peak energy costs and performing on par with gas-fired peakers, RMI found.
- A December 2025 ERCOT rule change added $3.6 million to wholesale pricing over just 24 hours by dampening batteries' ancillary services participation, underscoring their grid-stabilization value.
- Trump's August executive order restricting deployment of foreign-produced bulk power components layers new challenges atop existing import tariffs and unfavorable tax treatment of systems tied to Chinese parts.
- RMI's review of project agreements in California, Massachusetts, Nevada, and Texas put average annual gross tax contributions at about $6,600/MW, with Medway, Massachusetts set to receive $46 million over 20 years from a 250 MW/500 MWh installation.
- Replacing gas peakers with batteries could save Suffolk County, New York $5.3 million annually (500-MW Port Jefferson) and Harris County, Texas $3.8 million annually (240-MW La Porte) in health costs, per RMI's EPA-tool analysis.
Why it matters: The 22-point gap between RMI's 30% growth forecast and Wood Mackenzie's revised 8% outlook quantifies how exposed battery storage is to Trump's tariff regime and foreign-component restrictions, with grid operators already counting on these assets: California in 2024 saved $29 million in peak costs thanks to storage. Host communities now collecting roughly $6,600/MW annually in tax revenue face an uncertain project pipeline if policy headwinds stall new builds.
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