U.S. energy storage installations are projected at a record 16.2 GW in 2025, but new tax regulations under the Trump administration may dampen growth from 2026 onward. The FEOC (foreign entity of concern) rules will tighten sourcing requirements for tax credits, forcing more domestic production. Combined with trade tensions and federal permit risk, the outlook could cut up to 16.5 GW from expected deployment. Firms are racing to adjust supply chains to maintain eligibility and scale momentum.