What happened in this Energy story?

RMI projects 30% annual growth in US battery storage deployment over five years, even as Wood Mackenzie slashed its own deployment forecast to 8% through 2031 amid tariff and policy headwinds.

What is a key fact in this story? (1)

**RMI** forecasts 30% annual growth in US battery storage deployment over the next five years, citing data from Wood Mackenzie's 2024 projection made while the Inflation Reduction Act was still in full effect.

What is a key fact in this story? (2)

**Wood Mackenzie** released a new forecast today cutting five-year utility-scale battery deployment growth to just 8% through 2031, with 2026 expected to flatline—down from its earlier 16% projection—citing Trump's August executive order on foreign-produced bulk power components, import tariffs, and unfavorable tax treatment of China-linked systems.

Lower energy costs, community benefits drive 30% battery growth rate: RMI — SkimNews

By Utility Dive · Summarized & edited by Kapil Samant · 2026-09-22

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RMI forecasts 30% annual growth in US battery storage deployment over the next five years, citing data from Wood Mackenzie's 2024 projection made while the Inflation Reduction Act was still in full effect.
Wood Mackenzie released a new forecast today cutting five-year utility-scale battery deployment growth to just 8% through 2031, with 2026 expected to flatline—down from its earlier 16% projection—citing Trump's August executive order on foreign-produced bulk power components, import tariffs, and unfavorable tax treatment of China-linked systems.
California grid batteries supplied 13% to 19% of generation during the system's tightest 2024 hours, avoiding more than $29 million in peak energy costs, per RMI.
ERCOT's December 2025 rule change added $3.6 million to wholesale pricing over 24 hours by dampening energy storage systems' ancillary services participation, underscoring batteries' role in cost-effective grid stability.
During California's record 2022 heat wave, 3.4 GW of grid batteries met 6% of energy needs and helped maintain reserve margins; two years earlier, with less than 1 GW of storage, the state saw rolling blackouts despite a 10% lower demand peak.
Utility-scale batteries deliver an average of about $6,600 per MW in annual gross tax contributions to host communities, with a 250 MW/500 MWh project in Medway, Massachusetts set to provide roughly $46 million in revenue over 20 years.
Replacing gas peakers with batteries yields measurable health cost savings, including $5.3 million annually in Suffolk County, New York and $3.8 million annually in Harris County, Texas, per RMI's EPA-based analysis.

Why it matters: RMI and Wood Mackenzie now sit 22 percentage points apart on five-year US battery growth (30% vs 8%), with the gap hinging on whether Trump's August executive order restricting foreign-produced components, plus tariffs and unfavorable China-linked tax treatment, compress deployment despite batteries' documented grid and community benefits.