**Why Plummeting Battery Prices Are Big News for Solar Enthusiasts**
The solar industry is at an exciting crossroads, and one of the biggest factors driving innovation and opportunity is the rapid decline in battery prices. For anyone exploring solar panels for their home or looking into a solar array for their property, this trend is reason to take a closer look at how solar energy is becoming more accessible and cost-effective.
### Battery Prices Hit Record Low
According to recent reports, lithium-ion battery pack prices have fallen by an impressive 20% from 2023 to $115 per kWh—the lowest ever recorded. This is the steepest annual decline seen since 2017. But what does this mean for homeowners interested in solar? Batteries play a crucial role in solar system performance, especially for those aiming to store excess energy for use during the night or in case of grid outages. Lower battery costs make it more affordable to pair batteries with your solar array for home use, enhancing energy independence and long-term savings.
### What’s Driving the Price Decline?
A mix of factors is fueling this drop, including overcapacity in battery manufacturing, economies of scale, and the use of lower-cost components like lithium-iron-phosphate (LFP)
Original Article: https://pv-magazine-usa.com/2024/12/11/bnef-lithium-ion-battery-pack-prices-drop-to-record-low-of-115-kwh/
