Residential battery storage costs range from $700 to $1,300 per kWh fully installed, depending on system size and complexity. 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 developed from an analysis of recent publications that include utility-scale storage costs. Cost also hinges on duration, interconnection requirements, and regional labor. In the United States, utility-scale energy storage projects can achieve costs below $150 per kWh, whereas small residential systems typically exceed $300 per kWh. For instance, commercial systems larger than 10 MWh can have a unit cost that is approximately 30% lower than that of small-scale. But what will the real cost of commercial energy storage systems (ESS) be in 2026? Let's analyze the numbers, the factors influencing them, and why now is the best time to invest in energy storage.
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