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The 2020 Cost and Performance Assessment provided installed costs for six energy storage technologies: lithium-ion (Li-ion) batteries, lead-acid batteries, vanadium redox flow batteries, pumped storage hydro, compressed-air energy storage, and hydrogen energy storage.
To determine the total project costs for the Li-ion battery technology, for example, we take the product of the capital and C&C costs and its energy capacity (4,000*$372). We then add that value to the product of the PCS and BoP costs and the unit's power capacity (1,000*$388).
The assumptions listed in Table 5.1were adapted from a battery storage project located in the Pacific Northwest. It is believed that these are adequately representative of a typical storage system within the United States. Figure 5.1 shows an example input for an energy storage technology using the parameters described in Section 4.0.
Aquino et al. (2017) placed the value in a tighter range at $340–$450/kWh for a 4 MW/16 MWh Li-ion NMC system and a fully installed cost estimate of between $9.1 million and $12.8 million. They also provide price estimates for LFP and LTO systems at $340–$590/kWh and $500–$850/kWh, respectively.
Different places have different energy storage costs. China's average is $101 per kWh. The US average is $236 per kWh. Knowing the price of energy storage systems helps people plan for steady power. It also helps them handle money risks. As prices drop and technology gets better, people need to know what causes these changes.
The cost of a lithium-ion-based storage system is approximately $1,750 a kilowatt-hour, according to Renewable Energy World. Keep in mind that the cost increases if the system needs enlargement. Renewable Energy World also reports that a vanadium system costs $500 a kilowatt-hour or less.
Battery storage prices have gone down a lot since 2010. In 2025, they are about $200–$400 per kWh. This is because of new lithium battery chemistries. Different places have different energy storage costs. China's average is $101 per kWh. The US average is $236 per kWh. Knowing the price of energy storage systems helps people plan for steady power.
For longer-term storage, PSH and CAES give the lowest cost in $/kWh if an E/P ratio of 16 is used at $165/kWh and $104/kWh, respectively, inclusive of BOP and C&C costs, while their cost is $660/kWh and $417/kWh, respectively at an E/P ratio of 4.1 Hence, even at the low E/P ratio of 4, they are competitive with battery storage technologies.
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