In what industry leaders are calling a watershed moment for energy storage, California has enacted the most ambitious battery storage mandate in United States history. The Clean Energy Storage Act, signed into law this week, requires the state investor-owned utilities to collectively procure 15 gigawatts of new energy storage capacity by December 2032, more than tripling the state current installed base.
The legislation comes with substantial financial backing. A companion budget measure allocates $2.8 billion in state incentives, including tax credits for storage manufacturers who build facilities in California, rebates for commercial and industrial storage installations, and grants for community-scale projects in disadvantaged communities. The package also streamlines the interconnection process, which has been identified as a major bottleneck for new storage projects.
The mandate is technology-neutral, allowing utilities to meet targets through any combination of lithium-ion batteries, flow batteries, compressed air, pumped hydro, or emerging technologies like iron-air and zinc-bromine systems. However, at least 20% of procured capacity must provide storage duration of eight hours or more, pushing the industry toward long-duration solutions.
Energy storage advocates praised the legislation. Jason Burwen, CEO of the American Clean Power Association energy storage council, called it a signal that reverberates far beyond California borders. Industry analysts at Wood Mackenzie estimate the mandate could drive $18 billion in private investment and create approximately 12,000 permanent jobs in the state.
The law also addresses growing concerns about battery supply chain resilience. It requires that by 2030, at least 40% of battery cells used in state-funded projects must be manufactured in North America, aligning with federal Inflation Reduction Act provisions and supporting the growing domestic battery manufacturing ecosystem.
