Switched On How Co-Located Batteries Are Reshaping Solar’s Future
Jan 29, 2026
Cosmo van Steenis, a BNEF storage analyst modeling solar-plus-storage economics, and Lara Hayem, BNEF head of solar research, discuss the slowing of global solar growth and why 2026 may see the first dip. They explore rapid rise of co-located solar+storage, falling battery costs, shared-connection savings, curtailment hedging, operational coupling challenges, and how far storage can extend solar’s expansion.
AI Snips
Chapters
Transcript
Episode notes
Saturation Appears Across Mature Markets
- Mature markets beyond China (Europe, Brazil, parts of the US) also show saturation signs and falling additions.
- Curtailment and low daytime prices are reducing investor appetite across regions.
Co-Location Is Rapidly Rising
- Co-located solar-plus-storage installations have surged since 2020, with ~240 GW solar paired to ~50 GW storage worldwide.
- Falling battery costs are a major enabler of this co-location trend.
Battery Costs Have Collapsed
- Utility-scale battery costs plunged from ~$360/kWh in 2022 to ~$117/kWh in 2025, accelerating project economics.
- Cheaper storage makes pairing with solar increasingly attractive across markets.