Are solar batteries worth it?

Key takeaways

• Solar batteries are expensive to buy but can also increase your energy savings enough to offset the additional cost.

• Installing a solar battery can give you more independence from the grid and provide an emergency backup power source.

• Many federal and state incentives that can cover much or all of the cost of a solar battery.

We’ve seen monumental advances in battery technology over the last two decades, with batteries now used to power lightning-quick EVs around the country. These same advances have crossed over to solar technology, producing solar batteries that allow you to store excess energy from your solar power system, making it more useful and allowing for more energy savings.

In this article, we discuss whether solar batteries are worth the money you spend to buy them and what you actually get from them.

Are solar batteries a good investment?

There is no denying that solar batteries come with a hefty price tag, averaging around $10,000 and starting at around $6,000 on the low end. But despite the high cost, they can still be a good investment for many homeowners—and not just in the financial sense.

Solar batteries are a smart investment because they let you store extra solar power for use when the sun isn’t shining, lowering your energy bills and increasing your energy independence.

Solar batteries store electricity from your solar panels, so you can use it at night or during outages. This means you’ll rely less on the grid and can save money by using stored power during peak pricing hours. Over time, you’ll see lower utility bills, a smaller carbon footprint, and more control over your home’s energy use.

Consider how much solar batteries cost in your payback period

You need to factor in solar battery costs when calculating the payback period for a solar system. When you add a battery, you'll increase the initial system cost, which means a higher upfront investment. This cost should be amortized or spread over the system's expected lifespan. 

You'll also need to account for battery degradation, which affects how much usable energy storage you get over time. If you're using the battery for self-consumption, estimate how much grid electricity you're offsetting based on battery round-trip efficiency. Battery round-trip efficiency measures how much input energy is returned as output.

Finally, don't forget maintenance or replacement costs within the payback period. Including all these factors gives you a more accurate picture of how long it'll take for your solar and battery system to pay for itself.

Battery technology and solar storage types

Solar batteries are similar in function to the rechargeable batteries used in everyday consumer products like the one in your mobile phone. However, they are much larger and have a much higher capacity. 

There are four main types of solar batteries used in residential applications:

• Lithium-ion 

• Lead-acid

• Nickel cadmium

• Flow batteries

Of these four types, lithium-ion solar batteries are the most popular. Although they tend to be more expensive than other types of batteries, they typically have high energy storage capacities and superior longevity by comparison. Lithium-ion batteries used in solar energy systems are most similar to the batteries used in modern electric vehicles. Lead-acid batteries are also somewhat popular because they’re cheaper. Here’s a comparison between the two:

Can you use solar batteries with any type of solar panels?

Batteries can be charged with energy from any type of solar panel, such as monocrystalline panels or thin-film solar panels. What your solar panels are made of won’t prevent them from generating power and delivering it to the battery. However, there may be compatibility issues between different types of systems. 

Some incentives make batteries a no-brainer

The list price of solar batteries can be discouraging. However, you won’t likely have to pay the full cost of a solar battery yourself. Thanks to updates to the Residential Clean Energy Credit (RCEC), solar batteries now qualify for the same tax credits from the IRS as solar panels and other equipment like solar racking. That means you can claim up to 30% of the cost of a solar battery as a credit on your income taxes.

Many states offer incentives for solar batteries as well, both in the form of tax credits similar to the RCEC and on rebate models. Some of these are very generous and can offset much or even all of the cost of a solar battery. One notable example is the Self-Generation Incentive Program (SGIP) in California, which provides rebates ranging from $150 to $1,500 per kWh for installing energy storage systems. In this case, it may actually be cheaper to buy a solar battery than not to buy one.

Pros and cons of solar battery storage

Solar batteries have a lot of benefits for homeowners that can make them appealing. However, there are also some notable downsides to consider as well. We’ve listed some of the key advantages and disadvantages of solar batteries in the table below.

How long do solar batteries last under typical conditions?

Solar batteries have a limited lifespan, and how long yours lasts depends on usage, maintenance, and the type of battery.

• Most solar batteries last between 5 and 15 years under typical conditions.

• Lithium-ion batteries usually last 10 to 15 years.

• Lead-acid batteries generally last 5 to 10 years.

• Battery lifespan shortens if you frequently discharge them deeply or expose them to extreme temperatures.

• Proper maintenance, like keeping batteries cool and avoiding overcharging, can extend their life.

• You’ll probably need to replace your solar battery at least once during your solar panel system’s 25- to 30-year lifespan.

Bottom line: Are solar batteries worth it?

For many homeowners, solar batteries are a worthwhile addition to a solar energy system—even considering their considerable cost. Even at full price, a solar battery can increase energy savings enough to eventually pay for itself. There are also federal and state incentives that can significantly reduce the cost to you and make getting one an even better deal.

That said, a battery with solar panels might not be worth it if your roof doesn’t get enough sunlight, installation costs are high, incentives are low, or your energy bills aren’t expensive enough to justify the investment.

FAQ: Are solar batteries worth it?

Below are a few frequently asked questions about the value of solar batteries:

Is it worth getting a battery for your solar system?

Solar batteries can be a smart investment if your home uses a lot of electricity when the sun isn’t shining or if you want backup power during outages. They aren’t worth it if your utility rates are low or incentives are lacking.

What are the disadvantages of solar panel batteries?

The biggest disadvantage of solar panel batteries is the cost, which can be prohibitively expensive for many people. Other notable disadvantages include limited storage and potential compatibility issues.

What is the lifespan of a solar battery?

The average lifespan of a solar battery ranges from five to 15 years, depending on the type of battery. Lead-acid batteries have a working life of around three to five years. Lithium-ion batteries tend to last between 10 and 15 years.

What is the average cost of a solar battery?

The average cost of a solar battery for residential use is around $10,000. Batteries for solar energy systems typically range from $6,000 to $20,000, depending on the type of battery and capacity.