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Share of Solar Generation with Co-located Battery Storage is Growing
Utility-scale solar projects are increasingly integrating battery storage. By September 2026, over 16% of new capacity included co-located storage, up from 2% in 2017. This trend is projected to grow to over 30% by 2027 and 2028. This integration allows operators to maximize the value of generated power.
The integration of battery storage with utility-scale solar energy projects is experiencing substantial growth. This development empowers operators to optimize the value of their generated power, particularly in markets characterized by fluctuating wholesale prices.
According to recent data, by September 2026, over 16% of new utility-scale solar capacity commissioned this year included operational battery storage. This marks a significant increase from just 2% in 2017. Projections indicate that this share could rise further to 19% by the end of 2026. Longer-term plans for 2027 and 2028 suggest a continuation of this trend, with an anticipated increase to more than 30% of projects featuring co-located storage.
Combining solar power with battery storage provides operators with the flexibility to either dispatch generated electricity directly to the grid or store it in batteries. This decision is guided by prevailing wholesale prices. In regions with high solar penetration, prices often decline when solar output is abundant and increase as it diminishes. By managing the combined output, operators can enhance revenue in a dynamic market landscape.
Notably, the southwestern states of the United States, including California, Arizona, New Mexico, and Nevada, are leading this trend. These states possess an above-average share of solar capacity within their total generation mix and also exhibit a significantly higher rate of co-located solar and battery capacity, exceeding double the national average.
This information is based on data reported to the EIA by operators, as published by CleanTechnica.
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