As of 2025, average battery system costs for home use are: l Low-End Systems (Lead-Acid): $300–$500 per kWh l Mid-Range (Standard Lithium-Ion): $500–$800 per kWh.
This study shows that battery electricity storage systems offer enormous deployment and cost-reduction potential. By 2030, total installed costs could fall between 50% and 60% (and battery cell costs by even more), driven by optimisation of manufacturing facilities, combined with better combinations and reduced use of materials.
These trends point toward future scenarios of cost reductions and the potential of solid-state batteries. Innovations in energy storage technologies, particularly with lithium-ion and sodium-ion batteries, have substantially reduced costs.
Figure ES-2 shows the overall capital cost for a 4-hour battery system based on those projections, with storage costs of $245/kWh, $326/kWh, and $403/kWh in 2030 and $159/kWh, $226/kWh, and $348/kWh in 2050.
The projections are developed from an analysis of recent publications that include utility-scale storage costs. The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time.
Are battery storage costs based on long-term planning models?
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.
Why do we need energy storage costs?
A comprehensive understanding of energy storage costs is essential for effectively navigating the rapidly evolving energy landscape. This landscape is shaped by technologies such as lithium-ion batteries and large-scale energy storage solutions, along with projections for battery pricing and pack prices.