Battery energy storage failures are down 98% since 2018 and continue to decline

Battery storage systems, the large units that store solar or grid power for later use, are failing far less often than they used to. The Electric Power Research Institute reports that failures of lithium-ion battery storage systems have dropped 98% worldwide since 2018, measured per gigawatt-hour of batteries installed. In 2025, the failure rate fell another 50% from the year before.

A failure, as defined in the report, means a serious event like a fire, explosion, or electrical arc flash caused by a problem inside the battery system itself. There have been no U.S. injuries or deaths from these failures since 2019, the year a battery explosion in Surprise, Arizona, sent eight first responders to the hospital. Researchers credit better battery design, updated safety codes, and lessons learned since that incident. The industry has also shifted toward a battery chemistry called LFP (lithium iron phosphate), though researchers say they cannot yet prove this chemistry alone is responsible for the improved safety record.

None of this involves a specific program or rebate for homeowners, but it is relevant if you are considering a home battery, such as one paired with rooftop solar. The report found indoor battery installations are more often involved in failures, which is why some safety measures focus on walls or barriers that stop a problem from spreading between units in larger installations. Researchers also note that older battery systems may benefit from safety reviews to check whether they meet current design and safety standards.