The cost of storing solar energy with utility-scale batteries has fallen to a level where delivering dispatchable solar ‘when needed’ is economically feasible, found the report, which covered the world outside of China and the US, where ‘competitive procurement of Chinese-manufactured equipment is reshaping global storage economics’. Over the last two years, battery costs have fallen dramatically.

In October 2025, outside of China and the US, the cost of storing electricity with utility-scale batteries was just $65/MWh.

Ember analyst Kostantsa Rangelova drew on evidence from recent auctions in Italy, Saudi Arabia and India, together with interviews with developers across global markets. She remarked: ‘After a 40% fall in 2024 in battery equipment costs, it’s clear we’re on track for another major fall in 2025. The economics for batteries are unrecognisable, and the industry is only just getting to grips with the new paradigm.’

The research calculated that the cost of a full (four-hour or longer) battery energy storage system (BESS) connected to the grid was only $125/kWh as of October 2025, outside China and the US. Core battery equipment delivered from China currently costs about $75/kWh, while installation and grid connection typically add about $60/kWh.

Levellised cost calculations
The levellised cost of storage (LCOS) – which estimates the average cost to deliver one unit of electricity storage – is now just $65/MWh, based on the $125/KWh capital cost and ‘real world’ assumptions on financing costs, lifetime efficiency and degradation, supported by revenue modelling of auctions, which have helped push the LCOS down sharply.

Ember has published a live calculator that allows users to work out the LCOS using their own assumptions.

Up to 50% of solar generation can be stored to provide dispatchable supply at night, which Ember estimates adds about $33/MWh to the total cost of solar.

The global average price of solar in 2024 was $43/MWh. Therefore, turning this cheap daytime electricity into a dispatchable profile that is closer to the demand profile would result in a total electricity cost of $76/MWh. ‘This is a game-changer for countries with fast-growing demand and strong solar resources,’ remarked Rangelova.

What’s driven costs down?
Battery storage costs have been driven down sharply by rapid factory scale-ups in recent years, fierce global competition and over-supply.

Outside of China and the US, the total capex to build a utility scale BESS project is now around $125/kWh, compared to $75/kWh for the core equipment shipped from China and around $50/kWh for installation and grid connection.

Furthermore, the price of lithium iron phosphate (LFP) battery cells for stationery storage applications has dropped to around $40/kWh in Chinese domestic markets, as of November 2025. These cells are integrated into battery enclosures which have 5–6 MWh of cells in 20-ft containers.

As Ember concludes: ‘Cheap batteries don’t just complement solar… they give countries more options for planning reliable, clean electricity. Together, solar and batteries offer a scalable, secure and affordable foundation for much of the world’s future power systems.’

It costs just $33/MWh to transform daytime solar into dispatchable solar (example hourly solar profile, kW*)
Source: Ember