Cost Comparison by Technology
- Lithium-Ion Batteries: These are one of the most common battery types used for energy storage. The cost can vary depending on the application, with utility-scale lithium-ion batteries generally priced lower than residential systems. In 2025, residential lithium-ion battery systems in California average about $1,031/kWh. For utility-scale applications, costs range from $304/kWh for a four-hour system.
- Thermal Energy Storage: This technology is becoming more competitive, especially for long-duration energy storage (LDES). The global average capex cost for thermal energy storage is about $232/kWh. In non-China markets, costs are higher due to less commercialization.
- Compressed Air Storage: Another LDES technology, compressed air storage has a global average capex cost of $293/kWh. However, costs are also higher in non-China markets due to early stages of commercialization.
- Flow Batteries: These are known for long-duration storage and have higher costs compared to lithium-ion, but are competitive in certain regions like China. Costs are 66% higher in non-China markets compared to China.
- Gravity Storage and Pumped Hydro: These technologies offer long-duration storage but have higher capital costs. Gravity storage, for example, has a high average capex cost of $643/kWh.
Cost Factors
- Location and Scale: Costs can vary significantly by region due to local policies, economies of scale, and market maturity. China, for instance, has lower costs for many technologies due to large-scale deployments.
- Brand and Quality: While specific brand costs aren’t detailed, higher quality equipment and inverters can increase overall system costs.
- Technology Advancements: Improved manufacturing efficiencies and technological advancements continue to reduce costs across all battery types.
In summary, the choice of energy storage system depends on specific needs, technology type, and location. Lithium-ion batteries remain popular but are facing competition from other technologies for longer-duration applications.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-different-brands-of-energy-storage-systems-compare/
