Electricity system costs could be up to 40% lower in the 2030s if solar power and battery storage are deployed alongside growing electricity demand, according to a Schneider Electric Research Institute analysis. The figure is a modeled outcome, not a measured reduction in household bills, and the research does not establish a Europe-specific 40% saving.
The institute tested 40,500 scenarios combining different costs for solar, batteries and the grid. Its findings point to coordination as a key factor: adding renewable generation without enough demand or storage to use it can leave electricity unused and put pressure on the wider system.
The report’s largest projected reduction depends on costs for solar and batteries falling to levels expected in the 2030s. Under scenarios using current global average costs, the modeled reduction was about 10%, the institute said. Schneider Electric published the research on November 10, 2026.
Storage and demand must grow together
Batteries can store excess solar generation and release it when demand rises, reducing strain during peak periods. But the report warns that a poor match between battery storage durations could push total system costs as much as 35% above its current benchmark.
Laurent Bataille, Schneider Electric’s executive vice president of Europe Operations, described solar as “the fuel” and batteries as “the power plant.” He said the system becomes cheaper only when the technologies work together and electricity demand grows enough to use the supply.
The analysis therefore points to electrification and flexible consumption as part of the cost equation, rather than treating new solar capacity as a standalone solution. Its headline 40% figure refers to modeled electricity system costs under specific future assumptions; it should not be read as a forecast that European consumers will see their bills fall by that amount.