# Lead-acid batteries: Economics

Cheap to buy, expensive to cycle: the real cost per MWh

Source page: https://www.materialinsights.org/energy/e_lead_acid/sg-econ/

What this tab covers Economics and financial structure: capital versus operating cost, levelised cost of storage, and how the asset earns money.

Lead-acid is cheap to buy in small sizes but expensive per unit of energy delivered, because it wears out quickly; for daily cycling LFP now wins clearly.

#### Capex versus opex
Unfavourable

In the 2022 US DOE assessment, a 100 MW, 4-hour lead-acid plant cost USD 447/kWh installed in 2021, against USD 385/kWh for LFP. Since then lithium-ion prices have fallen sharply: stationary lithium-ion packs averaged USD 70/kWh in 2025. Fixed operating cost is low at about USD 8 per kW a year, but the battery must be replaced every 3 to 4 years if cycled daily, which dominates lifetime cost.^[2](https://www.pnnl.gov/sites/default/files/media/file/LeadAcid_Methodology.pdf)^[3](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf)^[7](https://about.bnef.com/insights/clean-energy/lithium-ion-battery-pack-prices-fall-to-108-per-kilowatt-hour-despite-rising-metal-prices-bloombergnef/)
 Installed cost, 100 MW 4 h (2021) USD 447/kWh^[3](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf) LFP on the same basis (2021) USD 385/kWh^[3](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf) Fixed O&M about USD 8/kW-year^[2](https://www.pnnl.gov/sites/default/files/media/file/LeadAcid_Methodology.pdf) Stationary lithium-ion pack (2025) USD 70/kWh^[7](https://about.bnef.com/insights/clean-energy/lithium-ion-battery-pack-prices-fall-to-108-per-kilowatt-hour-despite-rising-metal-prices-bloombergnef/)

#### Levelised cost of storage
Unfavourable

No recent lead-acid LCOS benchmark was found. A rough capital-only estimate, dividing the 2021 installed cost of USD 447/kWh by 675 lifetime cycles, gives about USD 660 per MWh delivered (calculated; before financing, O&M and charging cost, and generous because it assumes each cycle delivers the full rated energy). The same method for LFP at USD 385/kWh and 2,000 cycles gives about USD 190/MWh (calculated), and modern LFP cells last several times longer than that. Lead-acid only makes economic sense where cycling is rare.^[2](https://www.pnnl.gov/sites/default/files/media/file/LeadAcid_Methodology.pdf)^[3](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf)^[8](https://www.pnnl.gov/sites/default/files/media/file/Lithium-ion_Methodology.pdf)
 Capital-only cost per MWh delivered, lead-acid about USD 660/MWh (calculated)^[2](https://www.pnnl.gov/sites/default/files/media/file/LeadAcid_Methodology.pdf)^[3](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf) Same method, LFP at 2,000 cycles about USD 190/MWh (calculated)^[3](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf)^[8](https://www.pnnl.gov/sites/default/files/media/file/Lithium-ion_Methodology.pdf)

#### Revenue stack and market participation
Unfavourable

PNNL notes lead-acid is used mainly for resource adequacy and capacity roles, where it sits charged and discharges rarely. Its real market is backup power: uninterruptible power supplies, telecom towers, home inverters and car starter batteries. The global lead-acid market is about 400 to 450 GWh. It is poorly suited to daily arbitrage or frequent frequency regulation.^[1](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2025/Nov/IRENA_TEC_Sodium-ion_batteries_2025.pdf)^[2](https://www.pnnl.gov/sites/default/files/media/file/LeadAcid_Methodology.pdf)
 Global lead-acid market size about 400-450 GWh^[1](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2025/Nov/IRENA_TEC_Sodium-ion_batteries_2025.pdf)

#### Sources

1. [Sodium-ion batteries: Technology brief (includes lead-acid and lithium-ion comparison data)](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2025/Nov/IRENA_TEC_Sodium-ion_batteries_2025.pdf) IRENA, 2025
2. [Lead-Acid Battery methodology, 2020 Grid Energy Storage Technology Cost and Performance Assessment](https://www.pnnl.gov/sites/default/files/media/file/LeadAcid_Methodology.pdf) PNNL / US DOE, 2020
3. [2022 Grid Energy Storage Technology Cost and Performance Assessment](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf) US DOE / PNNL, 2022
4. [Lithium-Ion Battery Pack Prices Fall to $108 per Kilowatt-Hour, Despite Rising Metal Prices](https://about.bnef.com/insights/clean-energy/lithium-ion-battery-pack-prices-fall-to-108-per-kilowatt-hour-despite-rising-metal-prices-bloombergnef/) BloombergNEF, 2025
5. [Lithium-ion Battery methodology, 2020 Grid Energy Storage Technology Cost and Performance Assessment](https://www.pnnl.gov/sites/default/files/media/file/Lithium-ion_Methodology.pdf) PNNL / US DOE, 2020

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_lead_acid/index.md)
- [Overview](https://www.materialinsights.org/energy/e_lead_acid/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_lead_acid/correlation/index.md)
- [Science and technology](https://www.materialinsights.org/energy/e_lead_acid/sg-sci/index.md)
- [Engineering and performance](https://www.materialinsights.org/energy/e_lead_acid/sg-eng/index.md)
- [Impact and additionality](https://www.materialinsights.org/energy/e_lead_acid/sg-impact/index.md)
- [What to track](https://www.materialinsights.org/energy/e_lead_acid/tracking/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_lead_acid/links/index.md)