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An energy storage developer buying DC battery units has three tiers to choose from. There are the cheap units from China, which start at $70 to $80 per kilowatt-hour, and land at around $120 once tariffs, shipping, and service costs are added. There are more expensive battery units from other countries that face lower tariffs, meaning their cost comes to roughly $130 to $140; those generally still aren’t compliant with new foreign entity of concern rules, given that their supply chains are typically tangled with China’s.
And there are the American-made units, which cost between $160 and $180. Those higher prices, however, can be offset if the project where they’re installed qualifies for the lucrative investment tax credit.
Tony Song, SVP of engineering, procurement, and construction at energy storage developer GridStor, monitors these prices closely to decide whether it’s worth paying the premium for domestic units to qualify for the ITC. For now, he said, buying the pricier batteries claiming the 30% ITC is still GridStor’s best option.
“But if the DC blocks start to drop down to the 60s or high-50s as they continue to innovate, even with tariffs, you’re looking at sub-$100 for a DC block delivered into the U.S [from China],” Song said, noting that there have been many price decreases in the past two years. In that case, going through all the steps required for a company to qualify for the full 30% ITC might not be worth it after all.
