Founded in 2005 as an Ohio-based environmental newspaper, EcoWatch is a digital platform dedicated to publishing quality, science-based content on environmental issues, causes, and solutions. Contact online >>
Founded in 2005 as an Ohio-based environmental newspaper, EcoWatch is a digital platform dedicated to publishing quality, science-based content on environmental issues, causes, and solutions.
Note:In July 2024, SunPower notified dealers it would be halting all new shipments and project installations. The company also noted it would "no longer be supporting new Leases and PPA sales nor new project installations of these financing options."
Solar panels can only provide electricity when the sun is shining, but you can offset this limitation by adding an energy storage system. Considering equipment and installation costs, a solar battery can cost upwards of $12,000 before incentives. In a large home with a high electricity consumption, the installed cost of a battery bank can exceed $20,000.
The potential savings and payback period of a battery can vary widely depending on local electric tariffs and regulations. Here we will discuss the typical costs of solar batteries in the U.S. and the cases where the equipment offers an attractive return on investment. We will also review the main incentive programs and financing options available for solar batteries and offer buying tips when comparing solar battery providers.
The cost of solar batteries can vary widely depending on the manufacturer, battery chemistry and energy storage capacity. The National Renewable Energy Laboratory (NREL) analyzed the typical market price of an 8 kilowatt (kW) home solar system with and without batteries:
In the NREL cost analysis, the 12.5 kWh solar battery added $16,160 to the project budget. This means you can expect to pay around $1,293 per kilowatt-hour of a battery''s total energy storage capacity.
The NREL also analyzed how the market price of a typical home solar system is divided among solar photovoltaic (PV) panels, the battery bank, structural components, wiring, labor and other costs.
Solar batteries have simple maintenance requirements since they do not have any moving parts exposed to mechanical wear. However, residential solar batteries have a typical lifespan of 10 to 15 years, while high-quality solar panels can last for 25 to 30 years. So if you install solar and want continuous battery power, you will have to purchase a replacement battery after 10 years.
Most home batteries in the market have a lithium-ion chemistry, which is ideal for frequent charging and discharging. You can also find lead-acid batteries, which are better suited for off-grid applications and backup power systems. Lead-acid batteries are more affordable, but only last for 500 to 100 recharging cycles. On the other hand, the best lithium-ion batteries can exceed 4,000 cycles.
The exact savings achieved by a solar battery will vary widely depending on local electric tariffs and incentives. For this reason, we cannot provide a "typical" savings value and payback period. However, we can discuss how a battery saves money in the two scenarios above. Once you contact a solar battery provider, the company can calculate more accurate savings based on your home energy needs and local tariffs.
Many electric companies charge time-of-use (TOU) tariffs or increased prices at times of high demand, which is normally during the evening. For example, an electric company may charge a peak tariff of 40 cents per kWh between 5 p.m. and 9 p.m., but a lower tariff of 15 cents per kWh during the work day when people are less likely to be home. Here is a breakdown of how you can save money in this scenario:
In a few words, you can use a battery to store solar electricity and use it exactly when your electric company is charging the highest tariffs. However, this is only possible if your company charges a TOU tariff.
Many U.S. states offer some form of net metering —when your solar panels generate more electricity than what your home needs, you can sell the difference to your electric company for billing credits. However, some states do not have a net metering policy, meaning unused solar energy is wasted unless you store it in a battery.
You may also find net metering programs with unfavorable terms. For example, an electric company may charge 20 cents per kWh for consumption, while only paying 5 cents per kWh for excess solar energy. A solar battery is also recommended in this case since you can use it to save the full value of each kilowatt-hour of energy your panels produce. This recently happened in California when the state passed Net Energy Metering 3.0 (NEM 3.0), which drastically reduced solar export tariffs for homeowners.
Installing a solar battery is recommended if it can increase the power bill savings achieved by solar panels. This normally happens under the scenarios described above —when you have a TOU tariff or no net metering. You can also consider a battery bank if you have access to net metering with low solar export tariffs, like in California.
A solar battery is also helpful if you live in an area with frequent power outages. Solar panels alone cannot provide backup power since they have a variable electricity output while your home appliances need a stable supply. On the other hand, you can use a charged solar battery when the grid is down. For instance, you can use a home battery to keep your power on if you live in southern Florida, where power outages due to hurricanes are fairly common.
In general, a solar battery is not recommended if you have access to a favorable net metering program or live in an area with a stable grid and very few blackouts. In this case, a battery system offers minimal benefits compared to the cost.
You can install home batteries alone or with solar panels. However, you can only charge stand-alone batteries with grid electricity, which counts towards your monthly power bill. Combining solar panels and batteries makes more sense financially since you can generate your own electricity for recharging. By installing both systems together, you may also lower some upfront installation costs such as wiring and permitting.
In October 2023, the MarketWatch Guides team conducted a nationwide solar cost survey of 1,000 homeowners with installed solar panels. Based on the results, 49% of respondents had installed a battery along with their solar panels, which suggests energy storage is growing in popularity.
Solar panels and battery systems are both eligible for the 30% federal tax credit, officially called the Investment Tax Credit (ITC). This national program lets you claim 30% of your total solar system cost, including the battery, as a federal tax credit. You can use the credit to lower your federal income tax burden.
As a quick example, assume you buy a 6 kW solar panel system for $17,100 and a 10 kWh home battery for $13,000. In this case, you could claim $5,130 for the solar panel system and $3,900 for the solar battery. The combined cost of this solar and battery system is $30,100 but would get a total tax credit of $9,030. In other words, the net cost of the project drops to $21,070.
About Cost to install solar battery
As the photovoltaic (PV) industry continues to evolve, advancements in Cost to install solar battery have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Cost to install solar battery for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Cost to install solar battery featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
