Commercial Battery Storage Costs: A
In this article, we''ll explore the costs associated with commercial battery storage systems, helping businesses understand the financial and
The projections are developed from an analysis of recent publications that include utility-scale storage costs. The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time.
Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.
Investing in commercial battery storage systems now offers benefits such as shorter payback periods, energy independence, reduced peak power costs, and achieving sustainability or carbon neutrality goals faster. Additionally, government incentives make systems more affordable.
As expected, on a $/kWh basis, longer duration batteries have a lower capital cost, and on a $/kW basis, shorter duration batteries have a lower capital cost. Figure 7 also demonstrates why it is critical to cite the duration whenever providing a capital cost in $/kWh or $/kW. Figure 7.
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