As of June 2023, the US National Renewable Energy Laboratory has published its latest figures for the long-term costs of lithium-ion battery energy storage systems (BESS) until 2050.
The figures have shown that in the next 10 to 25 years, the current prices for battery energy storage systems will have halved which is excellent news for the planet for years to come.
Having these systems for storing electricity at a much lower cost is greatly beneficial to business owners across the world and will allow more people to create their electricity while saving money.
Throughout this blog, we are going to be discussing what energy storage technologies are, the advantages they present and why exactly the costs of these units are forecasted to be falling in the next few years.
What Is a Battery Energy Storage System?
A battery energy storage system is a way for business owners to store their renewable generated electricity from that of a solar panel or wind turbine etc. When these devices have generated the electricity, it will be stored in a BESS until it is needed for use.
These storage systems are vital to the efficiency of any renewable energy production system as it means that energy can still be used when it is not being produced by the energy source.
For example, this will mean that you are able to continue using your renewable energy created by solar panels in the evening when the panels are not receiving power from the sun.
There are various different types of BESS, the most common of which being lithium ion batteries which are used in mobile phones and electric vehicles. These types of batteries are also currently the most popular storage systems for large plants and electricity grids in the UK.
Battery storage systems already play a major role in our lives but many businesses look to employ them into the fabric of their power production for many years to come.
Advantages of a Battery Energy Storage System
As we have briefly mentioned, one of the key advantages of a battery energy storage system is being able to maximise the use of locally generated clean and efficiently stored energy for your home or business. This will allow you to reduce your consumption of energy from the mains supply at peak times. You will be able to use any kind of wind power generator or solar panel to do this.
Another of the major advantages that having a BESS can have for your business is that they are able to reduce the monthly cost of electricity due to the fact that you are using less energy from the grid.
Battery energy storage systems also will reduce your business’ carbon footprint which can mean your business is more appealing to the more environmentally conscious clients that you may come across.
Having a BESS has made owning solar PV systems and wind turbines much more energy efficient in recent years as it has allowed for both larger PV systems to be installed and more of this energy to be generated and consumed by the homeowners themselves, relieving the stress on the national grid.
Cost Projections For Battery Energy Storage Systems
As forecasted by the NREL, the total costs of battery energy storage systems will continue to fall over the next 15 years or so, meaning that renewable energy will become more accessible to people of all ages and backgrounds.
Another piece of analysis conducted by BloombergNEF has found that BESS costs have already fallen in the last 6+ months by 2% despite some sudden spikes throughout 2022. When compared to last year, the NREL states that BESS costs could fall by 47% (low projection), 32% (mid projection) and 16% (high projection).
Why are BESS Costs Falling?
One of the major reasons why the energy storage costs systems are falling is because of the general cost of the components it is made from such as the battery cells and battery packs themselves.
These components are accountable for around half of the cost of the overall storage system meaning that, since these components are due to a decrease in price, so are the systems as a whole.
Recent research statistics do show that the prices of battery energy storage systems have already begun decreasing over the last year, a very encouraging sign of things to come as this will mean that more people will feel like sustainable energy is affordable.
How Can Net Zero Power Help You?
The team at Net Zero Power are dedicated to helping businesses across the UK become net zero in the coming years. With the costs of battery energy storage systems falling, we urge UK businesses to purchase their renewable energy system during this period.
As we have stated, owning these systems will be greatly beneficial for your business’ outgoings and bills. If you are in need of any further advice about battery energy storage systems, you can get in touch with our team at 01744 353220 and we will be happy to help.