Batteries now cheap enough to make dispatchable solar economically feasible
Energy think tank Ember says utility-scale battery costs have fallen to $65/MWh outside China and the United States, enabling solar power to be delivered when needed.
December 12, 2025 Uma Gupta
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From pv magazine India
Battery costs have fallen sharply over the past two years. A steep drop in 2024 was followed by further declines in 2025, pushing storage within reach for dispatchable solar, according to Ember.
The energy think tank’s analysis, based on October 2025 auctions in Italy, Saudi Arabia, and India and interviews with active developers, shows the cost of a full utility-scale battery system connected to the grid at $125/kWh for long-duration projects of four hours or more outside China and the United States. Core battery equipment delivered from China now costs roughly $75/kWh, with installation and grid connection adding about $50/kWh.
Levelized cost of storage (LCOS) is calculated at $65/MWh, accounting for capital costs, financing, efficiency, lifetime, and degradation. Longer lifetimes, higher efficiencies, and lower financing costs supported by clearer revenue models such as auctions have all contributed to this reduction. Ember provides a live calculator allowing users to assess LCOS using custom assumptions.
“After a 40% fall in 2024 in battery equipment costs, it’s clear we’re on track for another major fall in 2025,” said Kostantsa Rangelova, global electricity analyst at Ember. “The economics for batteries are unrecognizable, and the industry is only just getting to grips with this new paradigm.”
Most solar generation occurs during the day, so only part of it must be stored to provide dispatchable supply. If half of daytime solar is shifted to the night, the $65/MWh storage cost adds about $33/MWh to total solar costs. The global average price of solar in 2024 was $43/MWh, yielding a total electricity cost of $76/MWh when combined with storage.
“Solar is no longer just cheap daytime electricity, now it’s anytime dispatchable electricity,” said Rangelova. “This is a game-changer for countries with fast-growing demand and strong solar resources.”
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