Solar Battery Cost: Why They're Not Always Worth It | EnergySage

How much battery storage you need

If you just want to back up a few critical loads, your solar battery cost will be on the lower end. If you're looking to back up your whole home or go off-grid, expect to pay a lot for battery storage. We're talking $80,000 to over 100,000 in some cases.  

Compared to solar panel systems, batteries are a bit less customizable in terms of size. It's usually pretty easy to add or subtract a single solar panel to get the ideal system size. It's more challenging to fine-tune the size of the battery, though this is improving. Some companies today offer very modular options for more flexible configurations. 

Your battery's inverter

Batteries store direct current (DC) electricity, but your appliances use alternating current (AC) electricity. You need an inverter to convert the DC electricity stored in your battery to usable AC electricity. Some batteries come with a hybrid inverter that also works with solar or a storage-specific inverter. If yours doesn't, you'll need to purchase one separately. The inverter could add a couple thousand dollars to your system cost. 

If you already have solar or not

Energy storage installations require significant electrical work. If you install storage at the same time as your solar system, you save money by getting the electrical work completed simultaneously. If you retrofit a battery to an existing solar system, you'll pay extra for labor, wiring, and in some cases, equipment.

If you need to upgrade or add a new electrical panel

As we said, big storage projects cost a lot of money. Most home battery systems today aren't large enough to cover all your electricity usage. This means you need to put specific circuits onto a critical load panel. A critical load panel functions like a secondary electrical panel. On the panel, you include the essential circuits that you want to remain energized in the event of an outage. 

While the critical load panel itself isn't costly, the electrical work required to install one can add up. Some battery companies today offer load management devices that make critical load panels unnecessary. If you have or choose to install a smart electrical panel, you also won't need a separate critical load panel for your battery.

Solar batteries store excess solar energy generated by solar panels to be used when the solar system isn’t producing energy or during a power outage to keep key appliances running.

While solar batteries have key benefits, like providing backup power, reducing reliance on the utility, and potentially saving more money on electricity bills, they come with a hefty price tag. You can expect to pay at least $12,000 to potentially upwards of $20,000 to install a single home battery.

Batteries are a good investment for homeowners whose utility company doesn’t buy solar power at the full retail price for electricity, want access to backup power, or want to maximize their renewable energy usage. If your utility has full retail net metering or you don’t need backup power, a battery probably isn’t worth it for you.

Find out how much solar + battery would cost based on recent installations in your area

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How solar batteries work

Solar batteries store the extra solar energy your panels produce that you don't immediately use so that you can draw from it later.

Solar panels generate the most electricity during the middle of the day when homes generally use the least amount of energy. When installed with a battery, the panels can send extra energy made in the afternoon to the battery. Then, after the sun sets and the panels no longer generate electricity, the house draws power from the battery.

Perhaps the biggest benefit of solar batteries is that they can power appliances when the power goes out. If the grid is down, the battery fires up and sends electricity to appliances it’s designed to run.

How much do solar batteries cost in 2023?

Most home battery installations will cost somewhere between $12,000 and $20,000, but the total cost will vary depending on the battery you choose and the difficulty of the installation.

*Estimated cost before incentives,  including equipment and labor

How much do solar batteries cost in your area?

Are there solar battery incentives?

There are a number of solar battery rebates and incentive programs available throughout the country.

The biggest incentive is the 30% federal tax credit available in all 50 states. The tax credit equals 30% of installation costs and reduces what you owe in federal income taxes. Most solar battery installations will earn a federal tax credit of about $4,500!

Aside from the tax credit, utilities and states are opening more battery programs. Some are rebates that reduce the upfront cost of a battery, like California’s SGIP program. Others are virtual power plant programs, where the utility company pays you for access to the energy stored in your battery when grid demand is high. 

Learn more: Complete guide to solar battery rebates and incentive programs

Beware additional costs. There may be additional upgrades you need to get a solar battery installed. The most common is installing a sub-loads panel, which can add $1,000 to $2,000 to your costs. Sometimes called critical loads or backup panel, the sub-loads panel is basically a smaller version of your main breaker panel that holds the circuits that your battery backs up.

What impacts the cost of a solar battery installation?

There are a number of things that impact what your battery will cost, like the number of batteries you install, the battery itself, the installer’s labor costs, and where you live. 

1. How many batteries you install

This seems like a no-brainer, but the more batteries installed, the higher the solar energy storage system costs. The number of solar batteries you’ll need depends on: 

• How many kilowatt-hours of energy you use
• The storage capacity of the battery
• How many appliances you want to power
• How long you want to power your appliances

In most cases, in the event of a power outage, one to two solar batteries will hold enough stored energy to cover your energy needs and provide backup power to a few key circuits. 

2. Battery characteristics and features

Just like everything else you buy, the brand that you choose will impact the pricing of the battery. This is because different brands offer different services and have different manufacturing processes. You can get a cheap battery from an unknown brand, but we always suggest using a reliable, trusted brand.

Learn more: SolarReviews’ 7 best solar battery brands

The type of battery will also affect how much it costs. Most of the time, when people talk about solar batteries, they talk about lithium-ion batteries, which are expensive but have the best performance features. There are also lead-acid batteries, which are cheaper but not as powerful, and are mostly used in off-grid set ups. 

Batteries with advanced features or integrated inverters will likely cost more than basic models. The performance specifications will also make a difference. A battery with a high storage capacity or power output may come at a higher price point. 

3. Labor costs and local market

The amount of labor required to install your battery system will also impact the price of a home solar battery installation. 

If the battery is installed at the same time as the solar panels, the labor costs could be a bit lower because all of the electrical work and permitting associated with the solar system and battery system will be completed at once. 

However, if the battery is being added to the solar panel system after the fact, labor could cost more, as new permits will need to be filed, more incentive forms may be required, and some additional electrical work may need to be done to connect the battery to the existing solar panels. 

Your battery system cost will also depend on the installer you choose and the local market. If batteries are in high demand, installers may charge more for the units in stock.

What are the pros and cons of solar batteries?

Pros of solar batteries

• Backup power source: Solar batteries can run key appliances when the power goes out, making them popular in areas that experience frequent blackouts. 
• Increase energy independence: When you have a battery, you rely less on the utility company. Take your power into your own hands!
• Decrease carbon footprint: Using solar energy stored in your battery maximizes the amount of renewable energy your home uses! 
• Potential electricity bill savings: If your utility requires time of use billing or doesn’t offer full retail net metering, you could save more on your electricity bill when you get a battery installed. 

Cons of solar batteries

• High upfront cost: Solar batteries are expensive to install. While standalone solar panels cost about $18,000, a solar plus storage system will cost closer to $30,000 (or more!).
• Longer payback period:  Solar panels typically pay themselves back in 12 years or less. With a battery, that can reach up to 20 or even 30 years. However, as utilities change how they bill solar customers, batteries become a more attractive investment. In California, installing a solar system with a battery now has the same payback period as a system without one because of Net Billing.
• Not practical for whole-home backup: Solar batteries are a source of backup power, but it’s usually not worth it to get enough batteries to run every single appliance in your home because of the price. Batteries are better for running your most important appliances during intermittent power outages. 
• Take up space: Solar batteries are bigger than you think. Batteries typically weigh over 200 pounds, and many are between three and four feet tall. You’ll need somewhere to put all that storage - somewhere you don’t mind seeing it! Luckily, many home batteries are housed in sleek cabinets, so it’s not so bad.

Are solar batteries worth it?

Although pairing solar panels with energy storage is becoming more common, it doesn’t mean it’s the right choice for everyone. Whether a battery is worth it depends on what you want it for. 

If you want a source of backup power, a battery is definitely worth considering, especially if you live somewhere that experiences frequent power outages. Unlike a gas generator, you don’t need fuel to fill up a battery, and they’re incredibly quiet.

If you want to increase electricity bill savings, you’ll need to look at your state and utility solar billing policies. Batteries won’t save you any additional money if your utility has a full-retail net metering program. You can see some savings if your utility requires time of use billing, but the additional savings could be minimal, depending on the rates.

Overall, batteries are worth it for homeowners who want a backup power source, who don’t have full-retail net metering, or who live somewhere with substantial battery rebates and incentives.

The best way to see if solar storage is right for you is by getting quotes from local solar installers. Not only can you compare installation prices, but they’ll help you figure out if battery storage meets your needs.

See what local installers are charging for solar + battery storage installations

Solar battery FAQs

Q: How long do solar batteries last?

A: Solar batteries typically come with a 10-year warranty. However, the battery will likely continue to operate for another 5 years after the warranty expires. 

Q: How long can a solar battery run my appliances?

A: An average-sized home battery can run key appliances like your refrigerator, WiFi router, lights, and outlets for about 8 hours without recharging.

How long a battery will power your home depends on the capacity of the battery and what appliances you’re backing up. Battery capacity is measured in kilowatt-hours (kWh), with the average battery holding around 10 kWh of electricity. If you run power-hungry appliances, like an air conditioner, your battery will run out of charge quickly. 

Q: What appliances can a solar a solar battery power?

A: The battery’s power output rating determines what and how many appliances a battery can run. The power output is measured in kilowatts (kW). Most solar batteries have an output of at least 5 kW and can power a refrigerator, WiFi router, lights, outlets and device chargers, and even an electric stove. 

If you want to run something like a sump pump or an air conditioner, you may need to install more than one battery to reach the required power output. 

Q: Can I install a battery without solar panels?

A: Yes! Batteries can be installed with or without solar panels, but they provide the most benefits when charged with solar. The best part is standalone batteries still qualify for the federal tax credit!

Q: What features should I look for in a solar battery?

A: The two most important things to look at are a battery's storage capacity and power output. These tell you what appliances a battery can run and for how long. At a minimum, you’ll probably need 10 kWh of storage capacity and 5 kW of continuous output.

See what local installers are charging for solar + battery storage installations