Cost of Solar Batteries

Interested in solar batteries?

SaveOnEnergy partners with Haven Energy to bring you options for solar batteries. Adding storage to your solar system can protect you from power outages or periods of lower production. We’ll work with you to determine how many batteries are best for your home.

How much do solar batteries cost?

The total solar battery price will depend on the battery size and type. A standard home solar panel backup system cost can range between $7,400 and $30,000, depending on the brand and battery type. Installation costs for labor and equipment can add another $3,000 to $4,000 to the solar panel battery cost. Your average daily electricity consumption and the battery type can determine the solar battery capacity your home will need. You can use a solar or energy usage calculator to estimate the total kilowatt-hours (kWh) your home uses.

Each household’s electricity usage changes throughout the day. Power consumption in a typical home is heaviest in the mornings and nights. Electricity demand tends to be lower during the day because people are usually away from their homes. However, daytime is the most valuable time for solar power generation. If you want a solar battery, ensure your solar installer includes it in your solar quote and warranty.

Cost of popular solar batteries

In 2024, most grid-connected residential solar panels work well with lithium-ion batteries, regardless of whether you have monocrystalline or polycrystalline solar panels or solar roof shingles. Most people pay for solar batteries through solar financing, such as solar loans. If you are in a solar lease or a power purchase agreement (PPA), you may not get to choose if a solar panel battery is included in your system.

The solar panel battery cost is less for lead-acid batteries, which typically have smaller capacities than lithium-ion options. The cost of lead-acid batteries is around $300. However, they are more suitable with solar panels for RVs and will not have enough capacity to power your home.

Solar battery cost 2024

You can get some of the best solar batteries for $7,400 plus installation, while other lithium-ion batteries cost $30,000 or more, as shown in the following table.

What factors determine the cost of solar batteries?

The cost of a solar battery will be unique to your needs and can vary based on the pricing structure of your solar panel company. Solar battery cost depends on the following factors. 

• Battery chemistry. A lithium-ion solar battery can be more expensive than lead-acid batteries because the former is more efficient, powerful, and lighter. Lithium-ion batteries also have the highest energy densities of any battery type. High energy density is the amount of energy a battery has relative to its weight or size. 
• Capacity. The capacity of your solar battery is a critical part of the cost. Larger capacity and higher power output batteries generally cost more than a battery that stores less power. The size of the battery is typically measured in kWh and determines how much electricity it can store.
• Critical load panel. A critical load panel is an essential part of a solar storage system. It ensures the efficient use of your battery power. Installing the critical load panel costs $1,000–$2,000 on top of the total cost of a solar battery.
• Adding a battery to an existing solar system. It will cost you more to install a solar battery to an existing solar system than if you did it simultaneously. When you install a solar battery and panels at the same time, the cost of labor could be lower because the permitting and wiring work are completed together. Adding a battery to an existing solar system will require obtaining new permits, additional electrical work to tie the battery to solar panels, and a new inspection of your electrical wires before turning on the battery.
• Battery brand. Some solar batteries cost more than others. It is worth noting that the solar battery prices of certain brands include installation costs, so consider that when comparing them.
• Installation costs. Installing solar batteries includes labor, equipment, permits, and overhead expenses. These costs can vary depending on the complexity of the installation and the geographic region in the U.S.
• Balance of System (BOS) components. BOS refers to all the components and equipment necessary to install and operate a solar energy system, excluding solar panels. Important components like wiring, safety equipment, monitoring systems, and integration with existing solar PV systems contribute to the overall cost.
• Market demand and competition. Market dynamics play a role in determining the cost of solar batteries. Increased demand, technological advancements, and competition among manufacturers can affect battery prices.
• Additional technological features. The best solar inverters, smart technology, and other new features may add to the cost of a solar battery.

How do solar batteries work?

Here is how a solar battery works with solar panels:

• Your photovoltaic solar panels absorb the energy from the sunlight and convert it to direct current – or DC – electricity.
• The power flows into the battery, typically located out of direct sunlight in the basement or garage. 
• The stored DC electricity moves from the battery to an inverter, which converts to alternating current (AC) electricity to power your home and appliances.

How solar batteries work during a power outage

During a power outage, a solar battery switches on. The battery automatically disconnects from the nearby electrical panel for safety reasons. Your utility company automatically turns off your solar panels to eliminate the risk of the solar system causing electric shock to the power grid. Your solar battery then starts to discharge electricity to power your home.

When the power goes out, your solar battery does not directly supply electricity to your existing electrical panel. Instead, it connects to a critical load panel, which acts as a separate electrical panel. The energy stored in the solar battery goes to the critical load panel to ensure that specific rooms and essential appliances receive power. This allows your battery to prioritize and supply electricity to the most important circuits and appliances instead of feeding directly into the main electrical panel or circuit breaker.

If you use the stored electricity to power all your appliances, you will use the energy in less than 24 hours. Bear in mind that some appliances use more electricity than others, and many need more energy to operate than the battery’s total capacity output. Because a typical solar battery does not have enough capacity to power the entire home for an extended period, the critical load panel helps you use electricity efficiently. 

Is a solar battery right for you?

Acquiring a solar battery in 2024 may make economic sense if:

• There are solar battery incentives in your area. 
• You experience frequent blackouts.
• You want to live off the grid.
• Your utility relies on time-of-use power rates.
• You want to reduce reliance on grid electricity and lower your utility bills.

Under time-of-use rates, the cost of electricity will be more expensive during peak hours (mornings and evenings) and cheaper the rest of the day and night. With a solar battery, you can maximize your savings by using stored energy when electricity is expensive.

But batteries may not be the best option for all solar owners. While solar battery prices have decreased in recent years, they are still expensive for most homeowners. It is an additional major investment on top of the cost of solar panels. If your utility offers 1:1 net metering credits, a solar battery may not make economic sense. You can use the grid as your “battery” and earn bill credits for the extra electricity your system generates.

Solar battery incentives

You can apply the 30% federal tax credit, also called the Residential Clean Energy Credit, toward solar batteries to cut the net solar battery cost. Some states have battery and solar incentives. For example, California offers a solar battery incentive, the Self-Generation Incentive Program (SGIP), which can cover nearly a quarter of a battery installation cost. Oregon also has a solar battery rebate program to help lower costs for homeowners. Homeowners can receive a rebate for as much as $2,500 for installing a battery storage system in Oregon.

How many solar batteries are needed to power a house?

To determine the number of solar batteries required, you would typically consider the following factors:

• Energy consumption. Find out your daily energy use in kWh from your utility bills or using energy monitoring devices. This helps determine the energy storage capacity you need to offset your energy usage during periods when solar panels aren’t producing electricity, such as at night or during cloudy days.
• Battery capacity. Assess the capacity of the solar batteries you are considering. Battery capacity is measured in kWh and represents the energy that can be stored. Divide your daily energy use by the battery capacity to estimate the number of batteries required to meet your energy needs.
• Depth of discharge. Consider the batteries’ depth of discharge (DoD). DoD refers to the percentage of a battery’s capacity that can be used before recharging is required. If you want to achieve greater energy autonomy or have backup power during outages, you may opt for a higher DoD, which could impact the number of batteries you need.
• System design. Consult with a solar installer or professional to design a system that meets your energy requirements. They can help determine the optimal number of batteries based on your specific needs and the capacity of the solar panel system.

What if I already have a solar system?

You can add a solar battery to your solar panel system, even if you have already installed panels. Adding a solar battery to an existing system is a great idea if your solar panels produce more energy than you can consume during the day. Unless you feed this excess generation into the power grid and get credit from your utility through net metering, adding a solar battery to your system may make sense. A solar battery stores surplus energy, which you can use whenever needed, either at night when production is low or when the power goes out.

Most solar batteries are backward compatible with solar panels. Some batteries only work with certain panels. In addition, not all solar companies install batteries separately from solar panels. Check with your solar company to find suitable solar panels and battery systems. Fill out the battery form on this page to explore solar battery options today.

How long will a 10 kW solar battery last?

The duration of a 10-kilowatt (kW) solar battery depends on several factors, including the battery type, how it’s used and maintained, and your energy consumption. Typically, solar batteries are designed to last anywhere between five to 15 years. The lifespan of a solar battery is measured in cycles, which helps users understand how many charge and discharge cycles the battery can undergo before its capacity degrades. A cycle typically represents one complete charge and discharge of the battery’s capacity.

It’s important to check the manufacturer’s warranty information or consult with a solar energy professional to get a more accurate estimation of the lifespan of a 10 kW solar battery. They can provide you with more detailed information based on the specific battery model and usage conditions.