Energy storage system prices have fallen to their lowest level on record, dropping to a global average of $117/kWh in 2025.
The new figures come from BloombergNEF’s Energy Storage System Cost Survey 2025, which reports a 31% decrease compared with 2024.
BNEF says the decline is driven by continued reductions in lithium-ion battery prices, rising supplier competition and a shift to higher-energy-density cell and container designs.
These factors are reshaping the economics of utility-scale storage, one of the fastest-growing segments of the clean energy sector.
China remains the lowest-cost market by a wide margin. Average system prices there fell to $73/kWh in 2025, compared with $177/kWh in Europe and $219/kWh in the US. Analysts say China’s dominance in battery manufacturing continues to drive global price trends.
The report highlights that larger battery cells are delivering notable savings. DC-side systems using 300 amp-hour or larger cells were 50% cheaper than systems relying on smaller formats.
At the container level, DC blocks with 4MWh or more capacity were 39% cheaper than 2–4MWh configurations.
BNEF forecasts that by 2035 turnkey 4-hour energy storage system costs could fall to $41/kWh in China. In Europe they are expected to reach $101/kWh, while US systems using Chinese batteries could fall to $108/kWh.
The survey underscores how improvements in manufacturing, supply chain maturity and energy density are accelerating cost reductions.
BNEF says these developments will support wider adoption of grid-scale storage, which is increasingly essential to balance variable renewable energy sources such as wind and solar.
Further analysis from the report’s co-authors is available, with BNEF offering briefings to discuss market implications for developers, utilities and policymakers.
Global energy storage system prices hit record low as costs fall 31% appeared first on Energy Live News.