U.S. electric power generation is on the verge of a significant transformation, with developers planning to add a substantial 86 gigawatts (GW) of new utility-scale capacity to the power grid in 2026. If realized, this would set a new record, underscoring the growing momentum in renewable energy and battery storage that small business owners should pay close attention to.
The latest report from the U.S. Energy Information Administration (EIA) indicates that solar energy will dominate this influx, accounting for 51% of the planned additions, followed by battery storage (28%) and wind power (14%). This shift highlights the crucial role that renewable sources are beginning to play in modern energy infrastructure.
Solar power alone is poised for exceptional growth, with developers planning to add 43.4 GW of utility-scale solar capacity in 2026. This figure represents a significant 60% increase from the previous year. Notably, more than half of the new solar capacity is targeted for four states: Texas (40%), Arizona (6%), California (6%), and Michigan (5%). Among the exciting projects slated for 2026 is the Tehuacana Creek 1 Solar and Battery Energy Storage System (BESS) in Texas, which will inject 837 megawatts (MW) of solar capacity into the grid, complemented by an additional 418 MW in battery storage capacity.
For small business owners, this expansion in solar power offers not only environmental benefits but also practical applications. The ability to harness solar energy could translate into reduced operational costs and a decrease in reliance on traditional energy sources, thus enhancing overall sustainability. As solar technology continues to advance, businesses may find opportunities for significant savings on energy bills through the adoption of solar energy systems.
The momentum doesn’t stop with solar. Battery storage is poised for remarkable expansion as well. Developers intend to add 24 GW of utility-scale battery storage in 2026, up from a record 15 GW added in 2025. This exponential growth spells promise for small businesses that leverage battery storage systems, which can help manage energy use more efficiently and even provide backup power during outages.
The concentration of new battery storage capacity will largely take place in three states—Texas (53%), California (14%), and Arizona (13%). Projects like the Lunis Creek BESS in Jackson, Texas, and the Clear Fork Creek Solar and BESS SLF in Wilson, Texas, are set to bring thousands of megawatts to the grid. For small businesses, investing in battery storage now could facilitate a smoother transition to a more resilient and reliable energy model.
Turning to wind energy, after a dip in annual additions since peaks in 2020 and 2021, developers plan to add 11.8 GW of wind capacity in 2026—more than doubling last year’s additions. Notable projects include the Vineyard Wind 1 (800 MW) in Massachusetts and Revolution Wind (715 MW) in Rhode Island. Wind energy can further diversify a small business’s energy portfolio, potentially shielding it from price fluctuations in fossil fuels.
Even as renewable energy sectors grow, natural gas will still play a role. Developers intend to add 6.3 GW of natural gas capacity, primarily across Texas, Oklahoma, Ohio, Tennessee, and Florida. Significant projects like the Orange County Advanced Power Station in Texas (1,158 MW) signal that natural gas will continue to be a transitional energy source for the foreseeable future.
However, small business owners should also consider the potential challenges that may accompany this surge in capacity. The integration of new technologies often requires upfront investment and a commitment to ongoing maintenance. Additionally, businesses should be aware of the regulatory landscape surrounding energy production and consumption, which could impact operational decisions.
Overall, the proposed additions to the U.S. power grid in 2026 present significant opportunities for small business owners to explore renewable energy and storage solutions. By leveraging these advancements, businesses can enhance their sustainability, lower energy costs, and position themselves for future growth in an evolving energy landscape.
For further details, you can read the full report from the EIA here.
