Battery Stocks Poised for Growth as Renewable Energy Surges Past Coal

The global energy landscape is undergoing a historic transformation. For the first time ever, renewable energy sources collectively generated more electricity than coal—a milestone driven by a remarkable 31% surge in global solar generation and a 7.7% rise in wind power, according to analysis by energy research firm Ember in October 2025. However, this renewable energy boom presents a critical challenge: managing intermittency. The solution has emerged as a cornerstone of the energy transition: energy storage technology powered by advanced batteries. As solar and wind costs plummet alongside growing government support, battery stocks have become increasingly attractive to investors seeking exposure to this transformative sector.

The Battery Storage Revolution Driving Renewable Energy Adoption

Energy storage now represents the missing piece in the renewable energy puzzle. With wind and solar generation rising sharply, utilities and grid operators face the challenge of balancing supply variability with demand fluctuations. Battery storage systems capture surplus renewable power during peak production and release it when demand surges—a capability becoming essential for grid stability.

The numbers tell a compelling story. Global energy storage battery shipments reached 246.4 gigawatt-hours (GWh) in the first half of 2025 alone, reflecting a staggering year-on-year increase of 115.2%, according to data from the CESA Energy Storage Application Branch. Looking ahead, research firm BloombergNEF projects that global annual energy storage deployment will hit 92 gigawatts (247 GWh) in 2025, representing 23% growth compared to 2024. Meanwhile, the International Energy Agency forecasts that global renewable power capacity will double between 2015 and 2030, adding 4,600 GW of new capacity.

These expanding market opportunities have caught the attention of investors and utility companies alike. Major power providers are racing to build out their battery storage capabilities, recognizing this as both a competitive necessity and a revenue opportunity. This dynamic creates significant investment potential in battery stocks positioned to capitalize on this infrastructure build-out.

Ameren Corp.: Scaling Battery Storage to Power the Grid Transition

Ameren has emerged as a leader in integrating battery storage into its renewable energy strategy. The utility filed a proposal with Missouri’s Public Service Commission in September 2025 to construct the 250-megawatt Reform Renewable Energy Center, a solar facility slated for construction next year with service commencing in 2028.

Beyond this single project, Ameren’s battery storage ambitions are substantial. The company targets adding 1,000 megawatts of battery storage capacity by the end of 2030—including the prominent 400-MW Big Hollow Battery Energy Storage Project—followed by an additional 800 MW by 2042. Complementing this storage expansion, Ameren plans to add 3,200 MW of renewable generation capacity by 2030, including 650 MW of solar projects, with another 1,500 MW by 2035.

The financial outlook supports this aggressive strategy. The Zacks Consensus Estimate projects that Ameren’s 2025 and 2026 sales will grow 16.2% and 7.8% year-over-year, respectively, with a long-term earnings growth rate of 8%. This Zacks Rank #2 (Buy) stock demonstrates how battery storage investments can drive sustainable revenue growth in the utility sector.

American Electric Power’s Commitment to Battery Infrastructure

American Electric Power operates the nation’s largest electricity transmission system, spanning more than 40,000 miles of infrastructure. As a major player in clean energy, AEP has secured regulatory approvals to acquire approximately 1,826 megawatts of owned renewable generation facilities valued at roughly $4.5 billion as of September 2025.

The company’s battery storage vision is equally ambitious. AEP has received approvals for 1,059 megawatts of renewable power purchase agreements and plans to invest $8.6 billion in renewables through 2027. Most significantly, the utility targets growing its renewable generation portfolio to 50% of total capacity by 2030—a transformation that will depend heavily on complementary battery storage infrastructure to manage grid intermittency.

Per Zacks Consensus Estimates, AEP will see 8% and 6.1% year-over-year sales growth in 2025 and 2026, respectively, with a long-term earnings growth rate of 6.7%. As a Zacks Rank #3 (Hold) company, AEP represents another compelling battery stocks opportunity within the utility sector.

Canadian Solar’s Dual Focus on Modules and Battery Storage

Canadian Solar takes a different approach by combining solar module manufacturing with energy storage solutions. The company maintains a globally diversified presence spanning the United States, China, Japan, the U.K., Canada, and emerging markets including Brazil, India, Mexico, and parts of Africa and the Middle East.

As of June 30, 2025, Canadian Solar’s solar project development pipeline totaled 27.3 gigawatts peak (GWp), with 2 GWp under construction, 4.2 GWp in backlog, and 21.1 GWp in advanced and earlier-stage development. More importantly for battery stocks investors, the company’s battery energy storage pipeline reached 80.2 GWh—including 6.4 GWh under construction and in backlog, plus 73.8 GWh in advanced and early-stage pipelines.

This substantial battery storage pipeline underscores Canadian Solar’s strategic positioning in both the module manufacturing and energy storage markets. The Zacks Consensus Estimate for 2026 sales implies 22.2% year-over-year growth for this Zacks Rank #3 stock, signaling strong momentum ahead.

Why Battery Stocks Merit Investor Attention in 2026

Three converging factors are creating unprecedented opportunity for battery stocks. First, electricity demand from transportation electrification and AI-powered data centers continues surging, driving urgent need for reliable grid capacity. Second, falling costs for battery technology continue improving economics for renewable energy projects. Third, government policies worldwide are providing regulatory tailwinds and financial incentives for renewable energy and storage infrastructure development.

These dynamics position battery stocks as key beneficiaries of the global energy transition. Whether through utilities like Ameren and American Electric Power that are integrating storage into their grids, or through manufacturers like Canadian Solar that are expanding battery production and deployment pipelines, companies in this space stand to capture significant long-term value.

Investors seeking exposure to the renewable energy boom should carefully evaluate battery stocks as a core holding. The combination of secular demand growth, favorable policy environments, and improving technology economics suggests that battery storage represents not just a technical necessity for renewable energy adoption, but also a compelling investment opportunity for the years ahead.