Costs

Energy Storage Systems: More Battery for the Same Money Costs and prices for Chinese-manufactured utility-scale* BESS continued to fall. Chinaʼs domestic market is showing increasing concentration with Tier 1 manufacturers that can produce at scale and innovate in systems far quicker than lower tier providers – helped along by China's efforts to phase out low-quality capacity. Further incremental cost reductions have been achieved through:

Innovations that push container-level system energy, such as larger cells and stacked systems Manufacturing improvements such as factory automation and higher yields Vertical integration and strong bargaining power for input materials

Price competition has also been intense, sometimes going below production costs.

Residential and C&I storage also continue to get cheaper, although they remain more expensive than utility storage due to smaller scale and more specialised products.

Turnkey defined as the DC battery (rack and balance of system), PCS, EMS, transformer, expenses, system integrator margin, & warranty.

Source: Content & analysis provided by CRU Group Distinguished Partner), BloombergNEF Distinguished Partner), Marek Kubik.

Extracted from the PDF; charts and images may read imperfectly.