The cost of storing daytime solar generation for use as dispatchable electricity has fallen to around $65 per megawatt-hour in 2025, according to new research published by energy think tank Ember.
The group said utility-scale battery storage costs outside China and the United States have continued a rapid decline this year, extending a sharp drop recorded in 2024. The findings draw on auction results from Italy, Saudi Arabia and India, as well as interviews with developers active across global markets.
Kostantsa Rangelova, global electricity analyst at Ember, said battery manufacturing trends point to further reductions. “After a 40% fall in 2024 in battery equipment costs, it’s clear we’re on track for another major fall in 2025,” she said.
Ember’s analysis places full system costs for long-duration, grid-connected batteries at about $125 per kilowatt-hour. It also notes that core equipment supplied from China is now priced at roughly $75/kWh.
The think tank said lower capital costs, improved lifetimes, higher efficiencies and increasingly predictable revenue frameworks are pushing the levelised cost of storage down. According to Ember, cheaper storage is shifting the role of solar generation, as only a portion of daytime output needs to be shifted to provide firm, dispatchable supply.
Rangelova said the trend is redefining solar’s value proposition. “Solar is no longer just cheap daytime electricity, now it’s anytime dispatchable electricity,” she said.
Ember added that falling battery costs are unlocking more of solar’s potential and giving countries a scalable, cost-effective foundation for long-term clean power planning.
