How Much Do Solar Batteries Cost in 2024?

Understanding the Cost of Solar Batteries

Installing solar battery storage can help you maximize the electricity your home’s solar panels generate by storing and saving excess energy for future use. Solar energy storage allows your solar panels to continue powering your home at night or during power outages and cloudy days. In this guide, we break down the types of residential solar batteries, their costs, and potential cost savings. We also cover factors impacting solar batteries cost, such as battery type, capacity, and professional installation fees, as well as national and local incentives that could save you money.

How Much Do Solar Batteries Cost?

The average cost to install a residential solar battery system ranges from $9,000 to $19,000. This includes the cost for the unit, which varies from $6,000 to $12,000 on average depending on the type and size of the battery. It also includes professional labor costs from $1,000 to $2,000 or more for larger or complex systems.

All costs listed are before tax credits and incentives are applied, which can save you 30% or more on solar battery installation. We outline specific solar incentive programs and cost savings below.

Adding a solar battery to an existing solar panel system does not typically cost much more than including one with a new installation. However, there may be retrofitting costs associated with integrating a battery, like resolving any compatibility issues with the solar panel system or replacing an existing inverter with a battery-ready unit.

If you plan to install solar panels and are undecided about adding storage, discuss with your solar installer so your system is battery-compatible should you decide to add it in the future.

Upfront Costs vs. Long-Term Savings

An easy way to evaluate solar battery costs and overall value is by comparing its cost per kWh to other models. Cost per kWh for a solar battery represents how much it costs to store and release 1 kWh of energy over its lifespan. A lower cost per kWh rating typically means a battery is higher performing, efficient, and durable.

A solar battery installation’s high upfront costs increase a home’s solar investment and payback period. The financial return on investment could take an additional five to 10 years longer to realize. For many homeowners who purchase a solar battery, having backup energy in place and grid independence are often a higher priority than a faster return on investment.

Solar battery installation may also appeal to homeowners who live in areas with no net metering or utility companies that charge time-of-use rates. Excess energy generated can be stored in the battery for future use and to save costs during peak usage periods.

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Factors That Affect Solar Battery Costs

Household energy usage will influence the battery storage solution that’s right for you. Here are the things that most influence the cost of residential solar battery installation:

Solar Battery Type & Lifespan

There are three primary types of solar batteries used in residential solar panel systems.

• Lithium-Ion Batteries: This type of battery is the most prevalent in home solar systems because of its higher energy density or storage capacity. It is also what makes this battery the most expensive to install, on average. Its small size makes it unobtrusive, and its longer lifespan of 10 to 15 years makes it an attractive choice for many homeowners.
• Lead-Acid Batteries: Better-suited for off-grid solar panel systems, lead-acid batteries have a lower energy storage capacity and lifespan compared to lithium-ion batteries. They offer a lower-cost battery alternative, however they usually require multiple units depending on a household’s energy needs. More maintenance and frequent replacement are also common with lead-acid batteries.
• Flow Batteries: Flow batteries work by storing solar energy in electrolyte tanks. This newer technology offers a longer 20-year lifespan on average and comes with a higher cost.

Battery Capacity

The amount of energy a solar battery can store ranges from 3 kW to 20 kW and varies by manufacturer and model. The more energy a battery can store, the more expensive the battery.

Power Output

Solar battery output is the amount of energy a battery can release to power your home’s needs. It is rated in peak power, the amount of energy to quickly power up household appliances and continuous output, or how much energy is consistently released over a longer time period for ongoing use. Solar batteries with higher power output ratings are more expensive than others with lower ratings.

Installation and Labor Costs

Average labor costs for professional installation are $1,000 to $2,000. Labor in urban centers or higher cost-of-living areas will cost more than average. Larger or more complex battery storage systems will also be more expensive to install.

Brand and Manufacturer

Industry-leading solar battery manufacturers often charge more for brand reputation, higher-performance products, stronger warranties, and reliable customer service.

The cost of solar batteries varies significantly across different brands, influenced by factors such as capacity, technology, and additional features. For instance, the Tesla Powerwall 2 offers 13.5 kWh of storage and is priced around $8,400, equating to approximately $622 per kWh. Similarly, the LG Chem RESU10H, with a 9.6 kWh capacity, is available for about $8,750, or $886 per kWh. Generac’s PWRcell, offering 9 kWh of storage, is priced at approximately $12,435, translating to $1,343 per kWh.

Warranty

Solar battery warranties average between 10 and 15 years. Products with stronger warranties include higher lifecycle clauses or total energy outputs and often come with a higher price tag.

Average Solar Battery Costs by Type

While the average cost to install a solar battery is between $9,000 and $19,000, the battery type or technology tends to influence cost the most. Here is the average installation cost for the most commonly used solar batteries.

Solar Battery Costs for Off-Grid Systems

Off-grid systems are not connected to electrical grid systems and must rely on solar panels and battery storage for all of their power. For these reasons, homes with off-grid systems should have significant battery storage capacity to power a home for several days without sun.

The average cost for these higher-capacity batteries is $10,000 to $20,000. There are additional requirements when installing an off-grid battery that increase costs, including larger inverters, backup generators, and other equipment to ensure a reliable solar generation and storage system.

Incentives and Rebates for Solar Batteries

To make the costs of solar battery installation more affordable, the federal Investment Tax Credit (also known as the Residential Clean Energy Credit) offers a 30% tax incentive through 2032. The credit applies to both solar panel systems and standalone solar battery systems at least 3 kW in size.

Many states, cities, and towns also offer local solar rebates that can be combined with the federal incentive for additional cost savings. The Database of State Incentives for Renewables & Efficiency (DSIRE) publishes an updated list of solar battery incentives in each state, county, and municipality.

Finally, some local utility companies offer annual rebates to customers who authorize them to draw on stored battery power during peak usage periods.

Is a Solar Battery Worth the Investment?

Whether or not to include a solar battery in your home solar investment is a big financial decision. Home location, energy usage, and energy security priorities are all important factors for consideration. While it will take longer to realize a solar battery’s financial return on investment, solar energy storage offers a reliable backup solution and energy independence.

A reputable solar installation professional is the best resource for determining the right solar battery storage for your home. Use Modernize’s service provider tool to connect with local installers for specific pricing in your area.

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