Battery Prices Drop 93%, Making Solar‑Storage Cheaper Than New Coal and Gas

*TL;DR: Battery storage costs have fallen 93% since 2010, pushing the price of solar‑plus‑battery power to €50‑75 /MWh—below the €60‑75 /MWh cost of new coal plants and the €88 /MWh cost of new gas plants.

Context The International Renewable Energy Agency (IRENA) released a report on firm renewable systems—solar, wind and batteries combined to deliver round‑the‑clock electricity. The analysis covered global cost data for new fossil‑fuel plants and for renewable setups that can store excess power for use when the sun isn’t shining or the wind isn’t blowing.

Key Facts - Battery storage prices have dropped 93% since 2010, while solar panel costs fell 87% and onshore wind costs fell 55% over the same period. - In high‑resource regions, a solar‑plus‑battery system now costs between €50 and €75 per megawatt‑hour (MWh). - New coal plants in China cost roughly €60‑75 /MWh; new gas plants cost more than €88 /MWh worldwide. - IRENA projects that the best‑performing solar‑battery projects could deliver continuous power for under €45 /MWh by 2035. - Francesco La Camera, IRENA’s director‑general, said the long‑standing claim that renewables lack reliability no longer holds.

What It Means The steep decline in battery prices removes the primary economic barrier to 24/7 renewable electricity. Utilities can now build solar farms with on‑site storage that compete directly with the capital cost of new coal or gas plants, eliminating the need for costly fossil‑fuel backup. This shift also reduces exposure to geopolitical supply shocks, such as disruptions in the Strait of Hormuz that affect oil imports.

Europe is already seeing price benefits; renewable‑heavy grids have cut electricity bills by up to 25% between 2023 and 2025, saving billions of euros in gas‑import costs. As battery costs continue to fall, energy‑intensive sectors like data centres and AI training facilities are likely to favor firm renewables over traditional fossil plants.

Looking Ahead Watch for policy incentives and corporate procurement strategies that target sub‑€50 /MWh renewable contracts, and for the rollout of large‑scale solar‑battery projects that could set new cost benchmarks before 2035.