Global Battery Storage Costs Fell to Record Low in 2025, Report Says

The global cost of battery storage systems declined sharply in 2025, reaching historic lows for four-hour energy storage projects even as costs for many other clean energy technologies increased, according to a new BloombergNEF report. Analysts said the drop reflects cheaper battery packs, stronger competition among manufacturers and better system design, improving the economics of large-scale storage worldwide.

BloombergNEF’s Levelized Cost of Electricity (LCOE) 2026 report shows that the benchmark cost for a four-hour battery storage project fell about 27 % year-on-year to $78 per megawatt-hour (MWh) in 2025 — the lowest level since BNEF began tracking storage costs in 2009. In multiple markets, the LCOE for such systems remained below $100/MWh.

Experts attribute the decline mainly to lower battery pack prices driven by manufacturing overcapacity from the electric vehicle sector and increased competition, along with improvements in storage system efficiency and design. These trends have encouraged developers to pair battery storage with solar generation, with 87 GW of combined solar-plus-storage capacity added in 2025 at an average cost of about $57/MWh.

In contrast, the report noted rising costs for many other clean energy sources in 2025, including solar, onshore wind and offshore wind projects, which saw benchmark LCOE increases due to supply chain constraints and other pressures. Despite this, BNEF forecasts continued declines in storage and renewable costs through the next decade as innovation and competition persist.

Overall, the data suggests that cheaper battery storage is becoming increasingly central to energy systems, supporting broader integration of renewables and helping balance fluctuating power supply — a key factor as nations pursue more sustainable and reliable electricity grids.