Utility-scale solar developers are increasingly pairing battery storage systems with new solar installations, marking a significant shift in renewable energy infrastructure deployment. Data reported to the Energy Information Administration indicates that as of September, more than 16% of utility-scale solar capacity commissioned this year incorporates co-located battery storage. This represents substantial growth compared to the 2% share recorded in 2017.
Projected additions scheduled for the remainder of this year suggest the co-location trend will accelerate further, with the share potentially reaching 19% by year-end. Looking ahead, long-term development plans submitted for 2027 and 2028 indicate the proportion could exceed 30%, signaling an industry-wide transition toward integrated solar-battery systems.
The strategy of combining solar generation with on-site battery capacity offers operational flexibility for plant operators. By co-locating these technologies, operators can direct solar-generated electricity either to the grid or into storage depending on real-time wholesale electricity prices. This approach helps mitigate price volatility that occurs in markets with substantial solar penetration, as wholesale prices typically decline when solar output is high and rise as solar generation decreases. Plants with integrated solar and storage capabilities can optimize the combined output of both resources to improve financial performance in fluctuating wholesale price environments.
Geographic analysis reveals concentrated deployment patterns across specific regions. Southwest states, including California, Arizona, New Mexico, and Nevada, demonstrate higher-than-average solar capacity relative to total generating capacity and significantly elevated levels of co-located utility-scale solar and battery installations. As of September, solar photovoltaic systems represent 13% of total U.S. utility-scale generating capacity nationally, with 18% of that solar capacity paired with battery storage. The co-location share in Southwest states more than doubles the national average, reflecting regional advantages in solar resource availability and evolving grid management needs.
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