​U.S. BESS publicly announced transaction volume in total GW increased 38% quarter-over-quarter in Q2 2026, even as deal count fell. Modo Energy tracked 12 transactions totaling 3.8 GW of battery capacity, down from 18 transactions in Q1. Disclosed debt reached $14.3 billion, more than five times the prior quarter, driven by three multi-billion-dollar solar-plus-storage financings. The largest deal was completed for a project planned to operate in CAISO, IPX Power's $4.95 billion Darden complex.

This is the third edition of Modo Energy's quarterly U.S. BESS capital markets report. For a full review of the previous quarter, see the U.S. BESS Capital Markets Report - Q1 2026.

We track representative deals each quarter. Spotted a missing deal or have questions? Reach the author at alejandro@modoenergy.com.

​Key takeaways

• Twelve transactions closed in Q2, down a third from Q1, but disclosed debt jumped from $2.7 billion to $14.3 billion.
• Three mega hybrid projects drove the quarter: IPX Power's Darden ($4.95 billion, CAISO), Cypress Creek's Steel River ($3.5 billion, MISO), and Enlight's CO Bar ($2.6 billion, WECC) together exceeded $11 billion.
• Solar-plus-storage dominated: Seven of nine financings involved colocated assets, attaching 5.7 GW of solar to the quarter's battery capacity. Among deals with disclosed duration, every 2-hour project sat in Texas. Every project elsewhere was sized to four hours.
• Tax-driven capital structures appeared in most financings. Two standalone tax equity deals closed (Chalan, Alamo City), and Darden alone carried $2.13 billion of investment tax credit purchase agreements.
• U.S. banks joined the syndicates after being absent in Q1. Wells Fargo, J.P. Morgan, Truist, KeyBanc, and CoBank all appeared in Q2 debt packages, ending three quarters without a U.S.-headquartered bank among the top five lenders.

​Deal capacity reached 3.8 GW, returning to Q1 2025 levels

Q2 2026 recorded 12 transactions, matching Q4 2025 and down from 18 in Q1. Nevertheless, total battery capacity reached 3.8 GW, the highest since Q1 2025, as the average deal size tripled.

​Three projects drove the shift: Darden, pairing 1.15 GW of solar with 4.6 GWh of BESS in Fresno County, California; Steel River, combining 1.63 GW of solar with 1.9 GWh of storage in Arkansas; and CO Bar, clustering 1.2 GW of solar and 4.0 GWh of BESS in Arizona. Each closed more debt than the entire Q1 market combined.

​Financings dominated the deal mix with tax capital running through most of them

Financing accounted for 9 of 12 deals, representing 3.5 GW of battery capacity. Beyond the three mega hybrids, Sunraycer closed its $901 million Eagle Springs and Lupinus portfolio with a five-bank syndicate led by NordLB. Meanwhile, Spearmint Energy secured $450 million for the 300 MW Red Egret project in Texas City, combining a $225 million construction facility, $96 million of Nuveen preferred equity, and a $126 million ITC transfer commitment.

Tax equity featured across the quarter. Origis closed $118 million with RBC Community Investments for Chalan, a 25 MW battery colocated with 65 MW of solar. OCI Energy raised $130 million from Greenprint Capital for the 120 MW Alamo City system, and Darden's package included $929 million of tax equity from J.P. Morgan and Morgan Stanley plus $2.13 billion of ITC purchase agreements.