Utility-scale solar developers are increasingly pairing new photovoltaic installations with battery storage systems. Data from energy operators shows that as of September 2026, more than 16% of utility-scale solar capacity brought online this year includes co-located battery storage, representing significant growth from the 2% share recorded in 2017.
Projected additions scheduled for the remainder of this year suggest the co-location share could reach 19% by year-end. Looking further ahead, industry plans submitted for 2027 and 2028 indicate this expansion will accelerate, with the portion potentially exceeding 30% during that period. This trend reflects changing strategies in how solar generation is integrated into the broader electricity system.
The primary advantage of co-locating battery storage with solar installations is operational flexibility. When storage systems are paired with solar generation, operators can direct electricity output either to the grid or to batteries based on real-time wholesale market conditions. This capability becomes increasingly valuable in regions where solar generation significantly impacts electricity prices, as wholesale rates typically decline when solar output peaks and increase during lower solar production periods. Plants with integrated solar and battery resources can optimize the combined output to capture greater value across fluctuating wholesale price environments.
Geographic patterns show concentrated adoption of this co-location model. Southwest states maintain higher-than-average solar capacity percentages relative to total generating capacity and also lead in deploying co-located solar and battery systems. As of September, solar photovoltaic represents 13% of total U.S. utility-scale generating capacity nationally, with 18% of that solar capacity co-located with battery storage. States including California, Arizona, New Mexico, and Nevada demonstrate particularly high adoption rates, with co-located solar and battery shares more than double the national average.
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