NREL: US utility-scale energy storage costs grew 11-13% in Q1 2022

LinkedIn
Twitter
Reddit
Facebook
Email

Energy storage costs in the US grew 13% from Q1 2021 to Q1 2022, said the National Renewable Energy Laboratory (NREL) in a cost benchmarking analysis.

The research laboratory has revealed the results of its ‘U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks, With Minimum Sustainable Price Analysis: Q1 2022‘ report.

For standalone energy storage, NREL said that the costs benchmark grew 2% year-on-year for residential systems to US$1,503/kWh and 13% for utility-scale to US$446/kWh.

Both figures are modelled market price (MMP) which it uses alongside a new, minimum sustainable price (MSP). MMP is simply the sales price that a developer would charge while MSP is a theoretical construct meant to capture the long-term cost impacts of technological evolution while muting the impact of policy and short-term market fluctuations.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

It uses a 5kW/12.5kWh benchmark for residential and a 60MW/240MWh benchmark for utility-scale, clearly modelled along the lines of the California market where four-hour durations have become the norm.

For residential, commercial and utility-scale the MSP is around 10% lower than the MSP. The commercial MMP benchmark in Q1 2022 was US$672/kWh, in between the two other sectors, but a change in methodology between 2021 and 2022 means the years cannot be compared directly, it added.

For solar-plus-storage, the MMP benchmark for residential systems grew 6% year-on-year to US$38,295 while utility-scale costs grew 11% to a benchmark of US$195 million. Commercial was US$1.44 million.

Within solar-plus-storage, the MMP benchmark is 13-15% higher than the MSP for all three segments.

Read Next

Premium
October 7, 2025
Energy-Storage.news Premium hears from a representative from Honeywell and Alejandro Schnakofsky, CTO of Prevalon, on fire safety in the battery energy storage system (BESS) industry.
October 7, 2025
Utility CPS Energy and IPP Eolian have begun operating Padua 1, a 50MW/100MWh battery energy storage system (BESS) located in Bexar County, Texas, US.
October 6, 2025
Nightpeak Energy has announced commercial operations of its 150MW/300MWh Bocanova Power battery energy storage system (BESS) in Brazoria County, Texas, US.
October 6, 2025
Following the recent notification, the Rajasthan government will develop 500MW/2,000MWh of standalone battery energy storage systems (BESS) with a four-hour single-cycle configuration and extended operational life. 
October 3, 2025
EDF Renewables has brought its 300MWh Milagro project online in New Mexico, while Enlight Renewable Energy has secured US$340 million in tax equity financing for its 940MWh Roadrunner project in Arizona.

Most Popular

Email Newsletter