Building operators are increasingly turning to on-site battery energy storage systems to address rising energy costs and enhance resilience against grid disruptions. However, safety concerns and regulatory hurdles necessitate comprehensive planning, as discussed by experts at the recent Greenbuild Conference & Expo in New York City.
What Happened
Building owners are rapidly adopting battery energy storage systems to mitigate energy expenses and bolster resilience against power outages. According to a report by the Urban Land Institute and UL Standards & Engagement, 2025 saw the installation of nearly 58 gigawatt-hours of on-site battery storage capacity, marking a record-setting year. Projections indicate that the sector could install 500 GWh of battery storage from 2026 to 2032. Despite this momentum, panelists at the Greenbuild conference highlighted persistent challenges, such as interconnection and permitting issues, unclear approvals, and shifting local requirements. These obstacles can delay projects and increase soft costs, including community engagement and engineering fees.
Jill Maltby-Abbott, a senior environmental and sustainability standards engineer at UL Standards & Engagement, emphasized that location-specific challenges and unfamiliarity with the technology can stymie even economically viable projects. Dean Apostoleris of Kimley-Horn noted that regulatory resistance remains a significant barrier, even in markets with established priorities for storage development. A lack of education about battery energy storage technology contributes to these delays.
What This Means for Your Business
For AECM professionals and government contractors, these insights underscore the importance of proactive community engagement and navigating complex regulatory landscapes. Understanding local permitting processes and risk thresholds is crucial to avoid project delays and additional costs. As state mandates encourage battery adoption, firms that can effectively manage community relations and regulatory compliance stand to gain a competitive edge. Moreover, aligning projects with federal funding opportunities and incentive structures can enhance ROI and reduce financial risks.
What US Operators Should Watch
Operators should closely monitor state-level mandates and deadlines, such as New York's target of 6 GW of battery energy storage by 2030, with only 415 MW currently installed. Understanding local community dynamics and regulations will be vital as these deadlines approach. Staying informed about evolving incentive structures and market conditions will also be crucial for strategic planning and investment decisions.
Source: Facilities Dive
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