As shown to the right, the five-year outlook for the U.S. energy storage market projects sustained growth. According to projections, total installed energy storage capacity is expected to surpass 15 gigawatts (GW) in 2025 with a projected growth to 82 GW installed by 2029. In New York, the Public Service Commission recently authorized the implementation of new NYSERDA programs to support an additional 4.7 GW of energy storage toward the goal of 6 GW by 20301. The Massachusetts 2024 Clean Energy Act significantly expanded the state’s commitment by directing utilities to procure 5 GW of energy storage capacity by July 20302. Connecticut3 and Rhode Island4 have a combined energy storage target of 1.6 GW by 2030 and 2033, respectively.

BESS is playing an increasingly critical role in enabling the integration of intermittent renewable energy sources connecting to the electric transmission grid. By storing power during low-demand periods and discharging it when demand peaks, BESS projects support grid stability, enhance resilience, and provide backup power for critical facilities. Real-world performance in markets like California and Texas (with a combined 17 GW of installed BESS) has demonstrated how energy storage can serve to reduce curtailment of renewable generation, respond quickly to grid disturbances, and prevent potential outages during extreme weather. Recently, California has been setting records for battery storage discharging to the grid and serving as the state’s single largest power source at certain times of day (see batteries in purple in the graph to the right charting the fuel mix). In the Northeast, growing participation in capacity and ancillary service markets further underscores the value of BESS as a flexible, fast-response asset for grid reliability and resilience.

Source: Wood Mackenzie/ACP US energy storage five-year market outlook (March 2025)5
Data source: gridstatus.io

Permitting BESS projects can be complex, often shaped by outdated perceptions around safety, noise, and visual impacts. While early systems raised concerns, today’s BESS technologies are significantly safer and quieter, with improved designs and stricter standards. Addressing these concerns through smart design, careful siting and permitting approaches, and coordination with local officials is essential to securing timely project approvals. The sections below outline practical strategies for navigating these challenges.

Permitting new energy technologies such as BESS presents inherent challenges, in part due to public concerns stemming from early fire incidents in systems that lacked modern safety features. These high-profile events have contributed to local project opposition, even as technology has significantly advanced. A report by the American Clean Power Association reviewed 35 large-scale BESS fire incidents in the U.S. from 2012 to 2024, finding most involved legacy systems that predated current safety standards6.

Modern BESS designs now often incorporate safer chemistry, improved container designs, and better thermal management, significantly reducing the risk of incidents. Environmental reviews of past fires show limited impacts with airborne emissions being brief and localized with no requirements for long-term remediation for soil or water contamination. Furthermore, the same data suggest that failures primarily stemmed from system integration, construction, and assembly issues rather than fundamental battery chemistry. These findings, supported by case studies, demonstrate that today’s BESS projects are far safer than public perception suggests, and design advancements continue to improve operational safety under evolving safety regulations.

Recent safety advancements have made BESS more viable and acceptable at a wider range of sites. One notable safety advancement is the industry-wide shift from nickel manganese cobalt batteries to lithium iron phosphate chemistry, which offers greater thermal stability with a significantly reduced risk of thermal runaway events (when one battery cell overheats and spreads toother cells). Containerized designs and water mist cooling reduce the potential of fire spreading beyond a single container. As part of project development and permitting, early and proactive education and coordination with local fire officials is critical and can prevent costly redesigns later in the process. This strategy, along with guidance from the International Association of Fire Chiefs7 and the America Clean Power “First Responders Guide to Lithium Ion Battery Energy Storage System Incidents”8, can help reassure local officials, regulators and the public and aid in addressing project-related safety concerns.

6 https://cleanpower.org/resources/assessment-of-potential-impacts-of-fires-at-bess-facilities

7 https://www.iafc.org/docs/default-source/1fire-prev/iafcresponseessfires.pdf

 8 https://cleanpower.org/wp-content/uploads/gateway/2023/07/ACP-ES-Product-7-First-Responders-Guide-to-BESS-Incidents-6.28.23.pdf

In Epsilon’s experience with siting and permitting BESS projects, noise and visual impacts are common concerns identified by host communities. Fortunately, system design improvements are going a long way to address these concerns. Quieter inverters and HVAC systems, paired with enclosures featuring integrated acoustic insulation are now common and significantly reduce operational sound. Strategic site layout—leveraging natural topography, setbacks, and vegetative screening—can further reduce acoustic and visual impacts and facilitate successful permitting at both the state and local levels. Epsilon’s 3D sound modeling software combined with our knowledge of BESS mitigation options allows us to predict, quantify and develop customized solutions. At Epsilon, we have advised dozens of BESS clients on effective ways to minimize and mitigate noise and visual impacts in the early stages of the development process, identifying these issues early reduces the risk of extensive re-engineering which can lead to schedule slippage and additional cost.

The following images provide an example of a sound attenuation barrier and landscaping for the currently under construction Medway Grid BESS Project in Medway, MA. Epsilon Associates was the lead environmental consultant for this particular project.   

Successful siting of BESS projects requires a thoughtful balance of technical feasibility, environmental considerations, and community compatibility. Early in the development process, identifying sites with grid access, buffers to sensitive receptors, and sufficient space for mitigation measures, is critical. Leveraging existing infrastructure such as substations, brownfields, or previously disturbed land can support permitting and reduce environmental impacts. Engaging with local officials and stakeholders early—before formal filings—can help identify potential concerns around noise, visuals, or safety and allow for design responses. At Epsilon, we apply screening tools with extensive permitting experience to help clients select sites that minimize risk and maximize the likelihood of success.

Epsilon Supports the BESS Industry