Cost Projections for Utility-Scale Battery Storage: 2025 Update
In this work we describe the development of cost and performance projections for utility-scale lithium-ion battery systems, with a focus on 4-hour duration systems. The projections are
In this work we describe the development of cost and performance projections for utility-scale lithium-ion battery systems, with a focus on 4-hour duration systems. The projections are
The cost of a commercial energy storage cabinet can vary significantly based on several factors, including capacity, technology type,
The 2022 Cost and Performance Assessment provides the levelized cost of storage (LCOS). The two metrics determine the average price that a unit
In 2025, the typical cost of commercial lithium battery energy storage systems, including the battery, battery management system (BMS), inverter (PCS), and installation,
Recent prices have reportedly dropped to as low as $100 per kWh. However, prices can vary based on supplier, geography, supply
Energy storage boosts electric grid reliability and lowers costs, 47 as storage technologies become more efficient and economically viable. One study found that the economic value of
Additional storage technologies will be added as representative cost and performance metrics are verified. The interactive figure below presents
Base year costs for utility-scale battery energy storage systems (BESSs) are based on a bottom-up cost model using the data and methodology for utility-scale BESS in (Ramasamy et al., 2023).
The following resources provide information on a broad range of storage technologies.
The cost of a commercial energy storage cabinet can vary significantly based on several factors, including capacity, technology type, installation requirements, and
Recent prices have reportedly dropped to as low as $100 per kWh. However, prices can vary based on supplier, geography, supply chain intricacies, and demand fluctuations.
Energy storage boosts electric grid reliability and lowers costs, 47 as storage technologies become more efficient and economically viable. One study
Additional storage technologies will be added as representative cost and performance metrics are verified. The interactive figure below presents results on the total installed ESS cost ranges by
The 2022 Cost and Performance Assessment provides the levelized cost of storage (LCOS). The two metrics determine the average price that a unit of energy output would need to be sold at
In 2025, the typical cost of commercial lithium battery energy storage systems, including the battery, battery management system
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In 2025, the typical cost of commercial lithium battery energy storage systems, including the battery, battery management system (BMS), inverter (PCS), and installation, ranges from $280 to $580 per kWh. Larger systems (100 kWh or more) can cost between $180 to $300 per kWh. How does battery chemistry affect the cost of energy storage systems?
Base year costs for utility-scale battery energy storage systems (BESSs) are based on a bottom-up cost model using the data and methodology for utility-scale BESS in (Ramasamy et al., 2023). The bottom-up BESS model accounts for major components, including the LIB pack, the inverter, and the balance of system (BOS) needed for the installation.
In 2025, the typical cost of a commercial lithium battery energy storage system, which includes the battery, battery management system (BMS), inverter (PCS), and installation, is in the following range: $280 - $580 per kWh (installed cost), though of course this will vary from region to region depending on economic levels.
Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.