In 2025, costs of storing renewables with batteries have fallen to its lowest ever: Report
Decreasing battery, and consequently solar, costs allows countries more choices when planning clean electricity grids. Photo: Pixabay
The cost of storing electricity with utility-scale batteries has fallen to just $65/MWh as of October 2025, except China and the US
According to a new report by the energy think tank Ember, the cost of storing electricity with utility-scale batteries has fallen to just $65/MWh as of October 2025. This figure stands globally, with the exception of China and the US.
In simpler terms, it is now quite cheap to transform solar power captured during the daytime to electricity all day round. Solar power can now be delivered whenever it is needed now in an economically feasible manner.
Batteries, too, have seen dramatic cost reductions in the last two years, found the report. In 2024, especially, there was an exceptionally steep drop in battery prices.
Decreasing battery costs
The drop in battery costs has spillover benefits. Providing clean and reliable electricity whenever needed is now feasible.
According to the report, the cost of a full battery storage system connected to the grid was only $125/KWh as of October 2025. This is for long-duration — four hours or more, and applicable for utility-scale battery projects in global markets, outside China and the US.
“After a 40% fall in 2024 in battery equipment costs, it’s clear we’re on track for another major fall in 2025. The economics for batteries are unrecognisable, and the industry is only just getting to grips with this new paradigm,” said Kostantsa Rangelova, Global Electricity Analyst at Ember.
Core battery equipment delivered from China now costs around 75 $/kWh, while installation and grid connection typically add about 50 $/kWh, according to the report.
As a result, the cost of storing electricity has now decreased. The Levelised Cost of Storage (LCOS) is assessed at just $65/MWh, based on the $125/KWh capital cost and real world project assumptions of financing costs, lifetime, efficiency and degradation.
However, this low LCOS is not just due to cheaper batteries. The report found that longer battery lifetimes, higher efficiencies and lower financing costs contributed to the decreasing cost.
Decreasing battery, and consequently solar, costs allows countries more choices when planning clean electricity grids.
Championing solar throughout the day
Lower battery storage costs means more flexibility for solar usage, according to the report. As most of the solar energy generated is used during the day, only part of it needs to be stored to provide dispatchable supply in the evening.
Now, if half of solar generated during the day is shifted to the evening, then there is an added cost of 33 $/MWh, on top of the 65 $/MWh storage cost, for the dispatchable supply.
In 2024, the global average price of solar was $43/MWh. So, the cost of solar throughout the day, including dispatchable supply, would be approximately $76/MWh, found the report.
“Solar is no longer just cheap daytime electricity, now it’s anytime dispatchable electricity. This is a game-changer for countries with fast-growing demand and strong solar resources,” said Rangelova.