Key facts
- Battery storage stations are now cheaper to build than gas-fired power plants.
- Battery prices are projected to drop by 40% in 2025.
- Gas-fired power plants face a supply crunch for turbines.
- Solar plus battery storage is becoming more competitive.
- Electric vehicle owners save hundreds of dollars annually on fuel.
- EV owner savings can exceed $1,700 per year.
- Volatile gas prices contribute to EV savings.
- Lower electricity costs benefit EV owners.
- BloombergNEF has lowered its electric vehicle demand forecast for the second consecutive year.
- The EV sector faces potential headwinds.
Battery storage stations are now cheaper to build than gas-fired power plants for the first time, a significant shift driven by a substantial 40% drop in battery prices projected for 2025. This cost reduction is coupled with a supply crunch impacting the availability of turbines for gas-fired power plants. The combined effect makes solar power paired with battery storage increasingly competitive in the energy market.
In parallel, drivers of electric vehicles (EVs) are experiencing considerable annual savings on fuel costs. These savings are estimated to be in the hundreds of dollars each year when compared to owners of gasoline-powered vehicles, with some projections indicating potential savings exceeding $1,700 annually. The primary drivers for these EV savings are the persistent volatility in gasoline prices and the comparatively lower cost of electricity used for charging.