Using solar energy long after the sun has set is now financially feasible as a result of dramatic reductions in the cost of utility-scale battery storage.
A new analysis by energy think tank Ember shows that the cost of storing energy dropped to just $65/MWh in October 2025 outside China and the US.
The research draws upon results from recent equipment supply auctions in Saudi Arabia, Italy, and India.
Using this information, the team estimated the total capital costs of adding long-duration utility-scale battery storage to the grid.
The low levelized cost of storage (LCOS) – the cost of storing one MWh of electricity to be used at another time – of $65/MWh was then derived.
Battery costs have fallen by an average of 20% year-on-year over the last decade and are on course for another sharp fall in 2025.
Greater efficiency, longer expected lifetimes and clearer revenue models resulting in lower financing costs are key factors driving down the cost of battery storage, according to the report.
Supply is also comfortably outstripping current demand, with three times as many battery cells manufactured in China in 2024 as were actually deployed.
“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.
“Solar is no longer just cheap daytime electricity, solar is now anytime dispatchable electricity. This is a game-changer for countries with fast-growing demand and strong solar resources.”
