Renewable energy is a key component to reducing carbon emissions and preserving the environment. Since 2011, energy generated from solar and wind quadrupled in America. More than 12% of America’s electricity comes from renewable sources today, up from 0.5% in 2001.
Source: Environment America
Battery improvements are a driving force in the adoption of renewable energy from solar and wind energy to electric vehicles (EVs). These improvements are lowering manufacturing costs, increasing storage capabilities and catalyzing innovation within the renewable energy sector.
Battery innovations generate value for all renewable energy stakeholders. From consumers looking for affordable electric vehicles to utilities looking for more cost-effective energy generation and school districts looking for incentives to offset the upfront costs of purchasing an electric bus, batteries enable these solutions.
Lithium-ion batteries are a staple in most electric vehicles and energy storage systems. For many years the high cost to produce these batteries created a large barrier to adoption. It was simply more economical to buy a gas or diesel-powered car or use fossil fuels such as coal and gas to generate energy.
With consistent research and development, lithium-ion batteries are powering commercial viability for EVs and energy storage systems. Production costs have declined more than 85% since 2010. Battery packs that once cost $1100 per kilowatt-hour (kWh) now cost around $156 per kWh. By 2024, the cost is expected to decline even further to $100 per kWh.
Along with cost reductions, battery storage has increased almost 18x since 2010. This new capacity in enabling utility companies to explore new battery storage capabilities. These innovations are driving companies and consumers to adopt renewable energy solutions as they reach cost parity with non-renewable alternatives.