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Installing solar batteries typically costs around $9,000. Whether you’ll recoup that investment depends largely on your location. A typical home requires about 10 kilowatt-hours (kWh) of battery storage to back up essential electrical components. In 2024, a battery of this capacity costs approximately $8,900 after federal tax credits, according to SolarWiki data.
You might consider solar batteries if you frequently experience power outages, if your utility company doesn’t compensate you for excess solar electricity, or if you have access to significant incentives. In these situations, solar batteries can be worth the investment, potentially saving you thousands of dollars over a decade.
However, if you’re thinking about getting a battery just because you have solar panels, you might want to reconsider. Batteries can significantly increase the cost of your solar system, sometimes even doubling it. In many cases, solar batteries aren’t yet cost-effective. Here’s how to determine if investing in a battery will pay off.
Understanding the Cost of Solar Batteries
Battery costs vary significantly across brands, primarily due to differences in battery sizes. The most straightforward way to compare costs is by price per kilowatt-hour (kWh), which measures the battery’s storage capacity.
Battery Cost by Brand
| Battery Company | Estimated equipment cost, $ |
|---|---|
| Tesla Powerwall | 9,300 |
| Enphase IQ 10 | 10,000 |
| FranklinWH | 10,500 |
| SolarEdge Home Battery | 9,000 |
| Growatt | 8,200 |
Solar Battery Costs
Battery prices vary significantly across states. According to SolarWiki quotes, Oregon has the highest battery installation costs, while California boasts the lowest. Differences in labor charges arise because some installers may be less experienced with batteries in certain states. Additionally, the preference for more expensive battery brands in specific areas can further increase costs. The ideal battery size also differs by state, influenced by factors such as weather, policies, and electricity consumption.
What Impacts the Cost of Solar Batteries?
Battery Quality
The quality of the battery affects its cost. Most home batteries use lithium-ion chemistry, with nickel manganese cobalt (NMC) and lithium-iron phosphate (LFP) being the most common. NMC batteries are more power-dense, while LFP batteries are more efficient and safer, though often 30-50% more expensive.
Battery Size
The cost of your battery system will depend on how much storage you need. Backing up a few critical loads is cheaper, but whole-home or off-grid solutions can be significantly more expensive.
Inverter Needs
Batteries require an inverter to convert stored direct current (DC) electricity to usable alternating current (AC) electricity. Some batteries come with built-in inverters; otherwise, you’ll need to buy one separately, adding to the overall cost.
Existing Solar System
Installing a battery simultaneously with a new solar system can save on labor costs. Retrofitting a battery to an existing system usually incurs additional costs for labor and equipment.
Electrical Panel Upgrades
Large storage projects may require a critical load panel or smart electrical panel, adding to the installation cost.
