The Cost Of Solar Batteries: Are They Worth It In 2024?

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Key takeaways

• The cost of popular solar batteries ranges from $6,000–$23,000.
• Solar batteries store excess generated energy for later use during a power outage, at night and on cloudy days.
• The total cost varies based on the manufacturer, battery type, power capacity, installation fees and other factors.
• Financial incentives are available to reduce the total price.

Battery storage systems are one of the latest technologies revolutionizing the clean energy transition. Solar batteries can reduce your reliance on the electricity grid by storing surplus energy generated from solar panels to use when the sun is less available. If you have considered solar or own a home with solar panels, you likely have also considered installing a solar battery. The cost can total about half the price of the average solar system, depending on several factors, such as the number of solar batteries your home needs. Read on to learn if solar batteries are worth it to you, what makes up the cost, benefits and more. 

Can solar panels and batteries save you money?

Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.

 

What is the cost of solar batteries?

Solar batteries are expensive and are not a one-size-fits-all product. The battery size you need for your home is determined by your energy usage. If you use more energy, you may need two solar batteries to power your home, which increases the cost. Data from the National Renewable Energy Laboratory (NREL) estimates the total cost of a solar battery, including installation, is $18,791. Installation and permitting fees vary by location and installer, but the NREL cost estimate for the standalone battery is $16,007.

Solar incentives and rebates are available to reduce the cost of a solar system, including solar storage. For example, the federal tax credit, known as the Residential Clean Energy Credit, offers a 30 percent credit on the total cost of solar, including batteries. Before incorporating additional fees, the federal tax credit can save you nearly $5,000 on the NREL estimated solar panel battery price. Some battery manufacturers also provide financial incentives.

Battery type also influences the cost. Lithium-ion batteries are the most common type paired with a residential solar system. They are usually more expensive than lead-acid batteries, but lithium-ion batteries are larger in size and store more energy to power your home. 

How much does a solar battery cost in 2024?

It depends. As we’ve covered, the total cost varies based on storage size, market value, installation fees and other factors. If you install a solar battery at the same time as panels, your total installation cost will be less than if you install it separately. 

Compare the pre-incentive cost of popular solar batteries in the following table. The prices included are for one battery, though you may need to install more depending on your energy usage and storage goals. Getting quotes from solar companies provides the most accurate solar battery prices because it includes additional fees specific to your location, such as taxes and installation labor.

Are solar batteries worth the price and do you need one?

You can benefit from battery storage, regardless if you have rooftop solar. Solar batteries store excess energy for later use when the sun is less available, such as at night, on cloudy days and in winter. Depending on the time of year, solar panels can generate more energy than your home needs. Batteries can reduce your reliance on the electricity grid and potentially help lower your utility bill by using stored energy when time-of-use (TOU) rates are more expensive. Solar batteries are especially worth the investment if:

• You frequently experience power outages.

• You want to go completely

  off the grid

  with solar

  .

• You’re on a time-of-use energy plan.

Solar owners without solar storage may use their state’s net metering benefits in place of a battery. Solar batteries are especially beneficial in states like California, where the most recent net metering policy reduces the value of energy credits. Net metering is an agreement between solar owners and the utility company where excess energy generated from your system is sent to the utility company in exchange for energy bill credits. If the credit is low, having a battery storage system will maximize your solar panel system investment and save more money in the long run. 

Solar batteries are not a required part of a solar system but can be worth it during power outages and for those with TOU energy plans. You can save money by using stored energy during peak hours when electricity rates are the most expensive. 

If you’re not home for most of the day, you likely will not use all the solar energy your system produces. The excess generation will be sent to the grid or you can save it in a solar battery for use when you are home. This is helpful for combatting peak energy demand and high electricity rates. Alternatively, if you do not have rooftop solar but are on a TOU plan, you can store electricity from the grid during off-peak hours for use when rates are higher. Strategic energy consumption is key to lower energy bills for TOU plans. 

Factors that impact solar battery price

• Number of batteries installed:

  The more battery units you install, the higher the total price. The number of batteries depends on the storage capacity and the amount of stored energy needed for your home. If you start with one, you can easily add another at a different time, but the total cost may be higher due to installation fees. 

• Battery chemistry:

  Most solar batteries use lithium-ion for solar energy storage. Lead-acid batteries are available and are typically cheaper, but they store less energy and do not last as long as lithium-ion.  

• Manufacturer:

  The brand’s services and manufacturing process impact the price. If the brand’s costs for manufacturing are higher, the price of the battery will likely be higher. Some installers offer a discount on the solar battery if you add it to a new solar system at the time of initial purchase. 

• Power capacity:

  The amount of usable energy a battery can store. Typically, the higher the power capacity, the higher the price. The Generac PWRcell is an exception, costing $10,000 with only a 3 kWh capacity. If you want to power more essential appliances during an outage, you will want a battery with higher capacity. 

• Critical load panels:

  If your home doesn’t already have a critical load panel, the electrical work to install one will increase the total cost. Critical load panels are a secondary circuit board to power essentials during an outage. You can configure your battery and critical load panel to support necessary appliances during outages.

• Inverters:

  Solar batteries, like the Tesla Powerwall, are equipped with an inverter, while others, like the LG Chem Resu, are not. Adding standalone inverters to your system increases the total price

• Incentives and rebates:

  Solar batteries are eligible for the

  30 percent federal solar tax credit

  . You can apply through the IRS to receive a credit on your next federal income taxes. This credit can be applied to batteries purchased from 2022 through 2032. Check with your local utility for additional incentives.

Powering your home with green energy doesn’t have to be a financial burden. Solar financing options allow you to increase your energy independence on any budget. There are many ways to pay for eco-friendly home upgrades, including personal loans and HELOCs.

Frequently asked questions

• At least 10 years based on the industry standard warranty. The lifespan of your solar battery will depend on the battery type and how much you use it. A solar battery’s lifespan is based on cycles of charging and discharging before the capacity degrades. Just like a cell phone battery, a solar battery loses its ability to hold a charge over time. For those seeking peace of mind and flexibility, choosing a battery with an unlimited cycle clause in its warranty offers the freedom to utilize the battery as much as you want without concerns about its lifespan.

• The benefits of solar batteries include the ability to store excess energy from the grid or your solar system to use during a power outage or times when electricity is most expensive. Installing a solar battery increases your self-consumption to reduce your reliance on the grid and contributes to a more sustainable energy future. The main drawback is the initial cost of solar batteries. Fortunately, the 30% Residential Clean Energy Credit applies to batteries, so you can pay less.

• Yes. You can charge your solar battery by pulling energy from the electrical grid, if permitted by your local utility policy. TOU energy plan consumers can potentially save money if you charge and store energy during off-peak hours and then discharge when rates are more expensive.

• Capacity, efficiency and cycle life are among the most important factors to assess. Capacity determines how much energy a battery can store, efficiency impacts its ability to effectively store and release energy and cycle life indicates how long the battery can last. Factor in the warranty, safety features and compatibility with existing systems to make an informed decision about the right solar battery for your home.

Solar panels are a great way to capture free, clean energy from the sun for yourself or to feed it into the grid for more savings on your utility bill, but it's attaching a battery bank that gives you real energy independence. 

Without solar batteries, even a house covered in photovoltaic panels will leave homeowners literally powerless when the grid goes down.

"Something that people don't consider is that if they're on natural gas and the power goes out in the winter they think their heater is going to work, but most have an electric fan, so if the power goes out you still need something," said Mike Murphy, owner of Utah-based PrepSOS, which sells solar batteries, generators and other emergency preparedness equipment.

Can solar panels save you money?

Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.

Batteries are the key component that ensures your home can always stay lit and warm and that vital pieces of electronics such as medical equipment continue functioning. Depending where you live, they might be able to save you some extra money by returning energy to the grid at times when it's more valuable. 

However, all of these benefits come at a cost, and wading through specifications to find the right match for your needs can be a bewildering task. Here's a concise primer on what you need to know before you go shopping for independence in a box. 

How solar batteries work

The simplest way to think of batteries is to imagine that the electricity in your house flows through wires in much the same way as water through plumbing. Batteries fill the role of a storage tank, making electricity readily available when it's needed, just as indoor pressure tanks and water heaters do with water. When batteries are tapped for energy, their reserve of stored electricity is depleted, but in a properly wired system they can be automatically replenished by "catching" any excess electricity flowing through the system from sources like solar panels or the grid. 

Depending on your goals for installing batteries, your system might look a bit different.

1. Connect just to solar panels: Batteries connected only to solar panels will fill when the sun shines and discharge when you use electricity and the sun is down or behind clouds. It's one option if you are off-grid and away from electrical utilities.
2. Connect to solar panels and to the grid: If you have a solar inverter that can temporarily disconnect you from the grid, you have what's known as a hybrid solar system. In such a system, you can charge your battery with your solar panels or the grid and use the energy stored there in your home or send it back to the grid and save some money via rate arbitrage (if you have time of use rates). A hybrid system can also keep your house powered during a power outage.
3. Connect just to the grid: While we wouldn't call them solar batteries, you can install batteries without solar panels at all. They would charge from the grid and would be useful for back up power or for enrolling in a virtual power plant.

Pros and cons of solar batteries

The pros and cons of buying a battery largely boil down to savings (and backup power) versus cost.

The extra solar electricity you store in your solar batteries can be used in place of electricity you'd normally have to buy from your utility or sold back to the grid when it's most valuable. This can save you some money and relieve some pressure on the grid when there's peak demand. (Whether this is a viable money-saving option for you depends on your utility's net metering rules.)

Some companies are starting to allow people to enroll their batteries in virtual power plants, a fleet of batteries, smart thermostats and other household appliances that work together to decrease demand on the grid. Where available, virtual power plants might come with additional perks for the battery owner.

In addition, you'll be able to use your battery bank in the event that the grid goes down due to a failure, natural disaster or even a solar flare.  A backup generator can also help keep the power on in an emergency (and charge your batteries), but it requires burning fossil fuels, usually either gas or propane. 

Batteries do add considerable expense to your home energy system, but federal tax credits and other incentive programs usually can be applied to the cost of storage. 

Battery Pros Battery ConsCan reduce energy bills Savings vary depending on local utility and net metering rulesGetting cheaper, and eligible for tax credits and incentives ExpensiveStored power for when the grid goes down Large battery banks require significant storage spaceStoring and releasing energy during peak usage hours can reduce stress on the grid Not all utilities encourage or reward this practiceCleaner source of back-up power than a generator A generator may be more useful in a major emergencyLatest battery chemistries (like Li-PO4) are exceedingly safe and simple to maintain Some batteries pose health and fire risks and require management and maintenanceIncreased energy independence

Different types of solar batteries 

There are several kinds of batteries used in battery backup systems, including lithium-ion and lead-acid batteries. Here's a quick overview.

Lithium-ion batteries

There are multiple lithium chemistries on the market, including nickel-manganese-cobalt, lithium polymer and lithium iron phosphate. The latest lithium technology comes with less danger of fire than older headlines might lead you to believe. They're capable of a deeper discharge than lead acid batteries (you can use up to 90% of a charge per cycle without inflicting much damage) and are much easier to maintain with a longer lifespan. They're also significantly more expensive and sensitive to temperature. Increasingly, though, they are becoming standard in residential solar applications.

Lead-acid batteries 

The basics of this technology are essentially unchanged for over a century. They remain inexpensive and widely available. For solar systems, it's popular to use somewhat more expensive sealed batteries that require less maintenance and eliminate the risk of dealing with a potential acid spill and hydrogen off-gassing. For a while, sealed lead acid seemed to be the future of solar batteries.

However, all lead acid batteries require more careful monitoring of charge levels compared with lithium-ion and can't compete in terms of efficiency, energy and lifespan but are a good and plentiful budget alternative. 

Flow batteries

Flow batteries (or redox flow batteries) are less common in home systems since they're mainly designed for commercial use. However, the technology appears promising, and it could become more widely used in residential battery backup systems in the near future.

Nickel-cadmium batteries

Nickel-cadmium batteries have a high energy density with double the energy of a lead-acid battery. Nickel-cadmium batteries are very durable, expensive and work well in extreme temperatures making them a good choice for large-scale commercial and industrial projects. Cadmium is toxic, however, and generally not appropriate for residential use.

Buying a backup battery system

In general, a solar battery bank can cost between $10,000 to $25,000 for 10 to 25 kilowatt hours of power. (The US Department of Energy says solar batteries can cost anywhere from $12,000 to $22,000.) 

That said, it ultimately comes down to your budget and energy needs. A small off-grid solar system with enough battery capacity for the basics (no air conditioning or electric heaters allowed) using a pair of high-capacity flooded lead acid batteries can be had for $500 total. Upgrading to lithium ion cost $1,300 for a system with comparable capacity. 

Adding batteries is a significant expense for any system, but the good news is that nearly a third will come back to you in the form of the 30% federal renewable energy tax credit. Other incentives may also be available from state and local governments, utilities, and even credit unions. 

How to set up a battery backup system

It's best to use a certified solar installer or electrician to install your solar batteries and connect them to your solar array, your home, the grid and an EV charger, if you desire. You should expect to spend a few thousand dollars for the labor involved, and there may be additional components like inverters, charge controllers and EV charge stations that can also add hundreds or thousands of dollars in expense. 

If you have confidence in your DIY skills and experience with electricity, it is possible to install batteries yourself. Just be sure to check with local regulations, building codes and equipment warranties. 

If you go the DIY route, make sure all batteries are the same age (ideally new). Don't mix new batteries with older ones to help make sure they take a charge evenly.

Maintaining a battery backup system

For all batteries, follow any manufacturers' instructions regarding monitoring the depth of discharge. Generally for lead acid batteries, this means trying to keep them over half charged as much as possible. Many lithium ion batteries can safely be taken down to only 10% charge. Flooded lead acid batteries also need to be topped off with distilled water a few times a year.  

Lifespan and warranties

A few years after installation, you may notice that your battery backup system doesn't hold a charge as well as it used to. That's because, like other types of batteries, battery backups lose storage capacity over time. 

To account for this, battery backups include a warranty that expresses how efficient the battery should be by the end of the warranty period. Many of the top solar batteries offer 10 years and 70%, meaning that by the end of the 10-year warranty, the battery should still operate at 70% of its original performance. Lead acid battery warranties typically last for two to five years.

Inverters and batteries 

Inverters play an important role in how the battery stores and converts solar energy. While solar panels generate electricity in direct current, the electric grid and homes generally use alternating current. An inverter can convert AC to DC or vice versa, and most solar batteries include an inverter to store the energy in DC form, as well as an inverter to convert it back into AC to be used in the grid or the home.

Because inversion of current isn't perfectly efficient, battery producers are always experimenting with how to invert less often and increase the efficiency of the battery. As a result, some batteries will not have inverters for both input and output included in the system. Talk to your solar installer about the battery system you're considering so that you can make sure you have all the external inverters you need.

Beware cheap inverters, which are everywhere. To power modern household appliances, a pure sine wave inverter is essential, otherwise you may end up frying some of the more delicate electronic circuits in your home. 

FAQs

Why do I need a battery with solar panels?

Solar power is available for only part of the day. Adding a solar power storage battery system ensures you always have power when the sun isn't out or during a power outage.

Can I install my own solar battery?

A professional solar electricity system installer can help you select a battery that works well with your goals, whether you want to be entirely off-grid, have an emergency store for outages or minimize your costs from the electric company during peak hours.

DIY battery installation instructions abound online, but beware. Working with electrical equipment is dangerous and doing so without the proper training may also void your warranties and put you out of compliance with codes and other regulations.

Do solar batteries qualify for the federal tax credit?

Yes. The 30% federal solar tax credit can be applied to the total cost of your solar battery system if your battery can hold at least three kilowatt-hours of energy and is installed in 2023 or later.

How many solar batteries do I need to power my house?

It depends on how you intend to use them. Likely, fewer batteries are required if you simply hope to maximize net metering savings. To keep your home powered during an extended blackout, you will need to calculate your total power needs