Installation of large-scale energy storage systems is expected to continue increasing in the U.S. throughout 2024, as championed by only a handful of states thus far.
According to data from the Energy Information Administration (EIA) shared on Tuesday, U.S. energy storage system deployment is expected to nearly double in 2024, with battery capacity forecasted to grow by 89 percent. As of November 2023, two U.S. states have installed substantially more energy storage systems than others, making up the vast majority of battery capacity available.
The data shows that California leads energy storage availability by a wide margin, with just over 7.3 GW (7,302 MW) of battery capacity installed. Texas follows in second with nearly 3.2 GW (3,167 MW) installed, while Arizona, Florida, and Massachusetts are next in the lineup.
You can see the full top 10 list for U.S. states with the most battery capacity installed below, courtesy of the EIA.
Credit: Energy Information Administration
The data takes into account planned storage system projects for the next two years, and the agency says developers are aiming to expand U.S. storage capacity by 30 GW by the end of 2024. As the EIA also notes, U.S. battery storage capacity has been increasing since 2021, and if the aforementioned goal is achieved, the country will have more energy storage than petroleum liquids, geothermal, wood and wood waste, or landfill gas by the end of this year.
There are over 300 utility-scale battery storage projects planned to be brought online by 2025, with roughly half of them being in Texas. Currently, the largest operating battery energy storage system (BESS) is a project operated by Vistra in Moss Landing, California, which has 750 MW of capacity and is located not far from Tesla’s 182.5 MW Megapack site in the same city.
Four out of five of the largest BESS installations set to take place in 2024 or 2025 are in Texas, as listed below:
- Lunis Creek BESS SLF (Texas, 621 MW)
- Clear Fork Creek BESS SLF (Texas, 600 MW)
- Hecate Energy Ramsey Storage (Texas, 500 MW)
- Bellefield Solar and Energy Storage Farm (California, 500 MW)
- Dogwood Creek Solar and BESS (Texas, 443 MW)
As for the recent increases in storage capacity, the agency says that quickly increasing wind and solar generation fleets in California and Texas have increased the need for growth in the battery storage sector. With energy storage projects, utility operators are able to store power during times of low electricity demand and then deploy stored energy during times of peak demand.
Credit: Energy Information Administration
The news comes just a few days after Tesla Megapacks went live on the island of Oahu in Hawaii, enabling a 185 MW project that has helped the island move away from the use of coal. The project isn’t represented in the EIA’s dataset, since that data only accounts for installations through last November.
In addition to its grid-scale Megapacks, Tesla also offers smaller, residential-level Powerpacks to create what it calls Virtual Power Plants (VPPs), essentially forming giant, distributed batteries that customers can use to sell energy back to the grid in times of peak demand. Currently, Tesla has pilots for these programs in states including California, Texas and Massachusetts, along with the U.S. territory of Puerto Rico.
Tesla Powerwall owner earns $574 by participating in California’s VPP program
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla dispels reports of ‘sales suspension’ in California
New EV tax credit rule could impact many EV buyers
