Battery storage costs drop to new low

The cost of battery storage projects fell to a new low in 2025 but other clean energy technologies became more expensive as supply chain issues took their toll, according to a new report.

BloombergNEF’s Levelised Cost of Electricity 2026 report found that the global benchmark cost for a four-hour battery project fell 27% year-on-year to around £57 per megawatt-hour (MWh) thanks to factors including increasing competition among manufacturers and improved system designs.

Falling battery costs are also accelerating the buildout of co-located renewable projects.

However, global costs for solar, onshore wind and offshore wind costs all rose in 2025, with supply chain constraints a major factor.

However, BNEF expects innovation and competition will see the long-term trend of falling costs to resume. By 2035, BNEF forecasts reductions of 30% in solar, 25% in battery storage, 23% in onshore wind and 20% in offshore wind.