Record-Breaking Battery Deployment in Q1
What’s new:
The U.S. battery market rang in 2025 with its strongest first quarter on record. Developers added more than 2 GW of capacity between January and March, most of it utility-scale. Residential batteries contributed 458 MW of that total.
Why it matters:
Rising electricity demand has grid planners scrambling for fast, flexible capacity to store power for times of need. Batteries, like solar, can be deployed almost anywhere.
Even with the uncertainty around Congress’s new bill, batteries are being deployed at a record-breaking pace, especially in the residential market.
It’s deceptive to attribute the utility-scale projects to Q1, since many of those projects were originated years ago. Residential battery projects, however, are much faster to deploy. Much of that 458 MW of residential storage would have originated in December, January, or even February.
Proposed cuts to the Investment Tax Credit could erase a quarter of expected build-outs over the next five years, hitting residential-scale projects hardest.
Utility-scale developers brought 1.5 GW online, a 57 % jump over Q1 2024.
Residential installers added 458 MW, with California and Puerto Rico driving 74% of those installs.
Wood Mackenzie projects 15 GW/49 GWh of battery storage deployment for 2025, but a potential 29% dip in 2026 if tax credits shrink.
Sen. Kevin Cramer Claims House is Reconsidering Solar Incentives
What’s New:
On Tuesday, Sen. Kevin Cramer (R-ND) said GOP negotiators are reconsidering the rooftop-solar incentives they cut from earlier drafts of the “One Big Beautiful Bill.”
His simple assurance that “There is a little bit of work being done on rooftop solar” was enough to send Sunrun stock up by 21%, and SolarEdge and Enphase stocks up 18% and 10%, respectively.
Why it matters:
Both House and Senate drafts had scrapped those incentives in their drafts of the bill. Many solar stocks dipped as a result. Cramer hinted that the final Senate language “might be a little more generous than the House,” easing the sudden cliff that threatened billions in investment and thousands of jobs.
It remains to be seen whether this is another baseless political statement or if it has merit. As soon as the Senate’s final draft is released, the solar industry will have a much better idea of what language is going back to the House for final approval.
Policy Uncertainty Causes $1.4 Billion in Project Cancellations in May
What’s new:
According to the bipartisan research group E2, companies canceled or shelved roughly $1.4 billion in planned U.S. factories and renewable-power projects in May.
Those withdrawals push 2025’s running total to $15.5 billion in abandoned investment tied to solar modules, batteries, and electric-vehicle components in states all across the country.
Why it matters:
E2’s data show Republican-held districts are feeling the pain, losing more than $9 billion in projects and about 10,000 jobs so far this year.
Companies cite the One Big, Beautiful Bill’s proposed early sunset of the 45X manufacturing credit and strict “foreign entity” sourcing rules as the reasons they’re freezing capital.
While a handful of new announcements (Including Rivian’s supplier park in Illinois) added nearly $450 million in May, analysts warn that domestic clean energy manufacturing investment is on a downward trend.
If Congress fails to provide a predictable path forward for manufacturers, more cancellations are likely to follow.
Sources:
Energy Storage Market Continues Strong Growth in Q1 2025 | Wood Mackenzie.
US installs more energy storage in Q1 2025 than ever before
$1.4 billion in solar, EV, storage developments cancelled in May
US policy uncertainty leads to $1.4 billion in clean energy cancellations
Solar Stocks Soar as GOP Mulls Changes to Tax Credits in Bill - Bloomberg
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