How much does an ESS system cost?

Increased competition in the commercial ESS space Government incentives (e.g., tax credits in the U.S. and Europe) make systems more affordable. For example, in 2022, a 100 kWh system could cost $45,000. By 2025, similar systems could sell for less than $30,000, depending on configuration.

How will ESS pricing change over time?

Fixed operation and maintenance costs will remain stable at 2.5% of capital costs, while rapid declines in battery pack costs are anticipated to influence overall ESS pricing, similar to historical trends in photovoltaic systems, enhancing economic viability for consumers seeking freedom in energy independence.

What is the price gap between ESS and batteries?

In March, the price disparity between ESS and batteries has continued to shrink. The average price of a 280Ah/0.5C storage battery hovered around 0.38 yuan/Wh in March 2024. According to our data, the average winning price for a 2-hour ESS is approximately 0.63 yuan/Wh, resulting in a price gap of around 0.25 yuan/Wh.

What happened to ESS bid prices in March 2024?

In March 2024, ESS bid prices varied depending on their storage capacity, with an overall downward trajectory evident, particularly in the case of four-hour ESS bids, which hit yet another all-time low. Raw material prices for storage battery are expected to remain stable. At the outset of 2024, battery prices experienced a decline.

Why are energy storage systems so expensive?

Energy storage systems (ESS) for four-hour durations exceed $300/kWh, marking the first price hike since 2017, largely driven by escalating raw material costs and supply chain disruptions. Geopolitical issues have intensified these trends, especially concerning lithium and nickel.

Why is PCs a stable price system?

Due to its relatively high technical barriers and more robust structure, PCS maintains a stable pricing system. According to ICC's data, the prices of domestic utility-scale storage PCS and centralized PCS have remained steady at 0.215 yuan/W and 0.145 yuan/W respectively since Q4 2023.