However, as with all choices, it comes with pros and cons. Here, we look at the pros and cons of battery storage and how you can use it in your home. Households with solar panels don’t just use battery storage but can also use it as a standalone energy-saving solution. A storage battery can store the energy produced by your solar panels during the day for you to use in the evening after the sun has dipped below the horizon. Equally, it can be used to store energy purchased from the National Grid at off-peak prices, usually overnight, before being used during peak hours, such as the evening. Both applications bring many benefits to a household.
Home battery storage can be used to store energy generated through solar panels; however, this is not its only use; it can also be used to power from the grid and save until needed. There are benefits to both of these systems. Many households start by investing in solar panels or a home battery storage system. While investing in the home battery first may seem counter-intuitive, you will see the benefits it brings even without the solar panels.
This enables you to maximise the use of your solar panels. Storing the energy generated during daylight until evening makes solar panels a practical and economically sensible decision for most households. Storing your energy reduces your reliance on the grid, which can be especially useful in power cuts. You can substantially reduce your carbon footprint by successfully storing your solar energy. It will save you money on your energy bills by massively reducing the energy you need to pull from the grid.
For those without solar panels, battery storage is still a sensible option. On a variable energy tariff, you can buy your energy at off-peak prices, usually overnight, and then store it until you want to use it. The peak rate for energy prices is in the evening when the demand rises. With battery storage, you can save energy until needed, saving you money on your electricity. Notably, off-peak energy is often greener than peak energy, as the grid is under more pressure during peak times. This system also protects you during a power cut, giving you greater energy independence.
Considering buying a battery storage system, weighing up the pros and cons of any investment is always sensible. Calculate your household energy consumption and determine how much you could save by investing in a battery storage system.
The price can be a barrier to some people, especially if it is combined with the cost of installing solar panels. Compared to solar panels, which have a lifespan of 25 to 30 years, batteries only last anywhere from 5 to 15 years, which means that your battery will need to be replaced during the lifespan of your solar panels. If you already have solar panels and have been selling your surplus energy back to the grid, you will stop getting this payment. However, you should more than gain with the money saved by not having to buy energy off the grid during peak hours. Lastly, a battery storage system may not be as beneficial if you are at home all day and use most of your energy directly from your solar panels.
This system only works on a variable energy tariff. You must be extremely careful to buy your energy at the right time. Again, it is a significant investment and may only be the right choice for some, depending upon your circumstances. It can be hard to calculate the return on investment time on a home battery, so make sure you choose one from a reliable company with a good warranty on the battery. You may find that your battery degrades over time, so the storage capacity will reduce, making it a less effective solution for your energy system.
Solar batteries store excess solar energy generated by solar panels to be used when the solar system isn’t producing energy or during a power outage to keep key appliances running.
While solar batteries have key benefits, like providing backup power, reducing reliance on the utility, and potentially saving more money on electricity bills, they come with a hefty price tag. You can expect to pay at least $12,000 to potentially upwards of $20,000 to install a single home battery.
Batteries are a good investment for homeowners whose utility company doesn’t buy solar power at the full retail price for electricity, want access to backup power, or want to maximize their renewable energy usage. If your utility has full retail net metering or you don’t need backup power, a battery probably isn’t worth it for you.
Find out how much solar + battery would cost based on recent installations in your areaMany of the best home solar backup batteries will cost somewhere between $12,000 and $20,000, but the total cost will vary depending on the battery you choose and the difficulty of the installation.
Battery
Estimated equipment cost
Enphase IQ 10
$10,000
Tesla Powerwall
$9,200
SolarEdge Home Battery
$9,000
Generac PWRcell 9 kWh
$8,000
LG Chem Prime
$9,500
The price of a Tesla Powerwall is usually much lower than other battery brands, but it will depend on the installer you choose.
How much do solar batteries cost in your area?There are a number of solar battery rebates and incentive programs available throughout the country.
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The biggest incentive is the federal solar tax credit available in all 50 states. The tax credit equals 30% of installation costs and reduces what you owe in federal income taxes. Most solar battery installations will earn a federal tax credit of about $4,500!
Aside from the tax credit, utilities and states are opening more battery programs. Some are rebates that reduce the upfront cost of a battery, like California’s SGIP program. Others are virtual power plant programs, where the utility company pays you for access to the energy stored in your battery when grid demand is high.
Learn more: Complete guide to solar battery rebates and incentive programs
There are a number of things that impact what your battery will cost, like the number of batteries you install, the battery itself, the installer’s labor costs, and where you live.
This seems like a no-brainer, but the more batteries installed, the higher the solar energy storage system costs. The number of solar batteries you’ll need depends on:
How many kilowatt-hours of energy you use
The storage capacity of the battery
How many appliances you want to power
How long you want to power your appliances
In most cases, in the event of a power outage, one to two solar batteries will hold enough stored energy to cover your energy needs and provide backup power to a few key circuits.
Just like everything else you buy, the brand that you choose will impact the pricing of the battery. This is because different brands offer different services and have different manufacturing processes. You can get a cheap battery from an unknown brand, but we always suggest using a reliable, trusted brand.
The type of battery will also affect how much it costs. Most of the time, when people talk about solar batteries, they talk about lithium-ion batteries, which are expensive but have the best performance features. There are also lead-acid batteries, which are cheaper but not as powerful, and are mostly used in off-grid set ups.
Batteries with advanced features or integrated inverters will likely cost more than basic models. The performance specifications will also make a difference. A battery with a high storage capacity or power output may come at a higher price point.
The amount of labor required to install your battery system will also impact the price of a home solar battery installation.
If the battery is installed at the same time as the solar panels, the labor costs could be a bit lower because all of the electrical work and permitting associated with the solar system and battery system will be completed at once.
However, if the battery is being added to the solar panel system after the fact, labor could cost more, as new permits will need to be filed, more incentive forms may be required, and some additional electrical work may need to be done to connect the battery to the existing solar panels.
Your battery system cost will also depend on the installer you choose and the local market. If batteries are in high demand, installers may charge more for the units in stock.
Solar batteries store the extra solar energy your panels produce that you don't immediately use so that you can draw from it later.
Solar panels generate the most electricity during the middle of the day when homes generally use the least amount of energy. When installed with a battery, the panels can send extra energy made in the afternoon to the battery. Then, after the sun sets and the panels no longer generate electricity, the house draws power from the battery.
Perhaps the biggest benefit of solar batteries is that they can power appliances when the power goes out. If the grid is down, the battery fires up and sends electricity to appliances it’s designed to run. Here are some of the pros and cons of solar batteries:
By themselves, solar panels are often worth the cost because they can directly reduce your electricity bills. Solar batteries, on the other hand, can make economic sense, but they usually just add peace of mind. Whether a battery is worth it depends on how much you value what you the benefits it can provide.
If you want a source of backup power, a battery is definitely worth considering, especially if you live somewhere that experiences frequent power outages. Unlike a gas generator, you don’t need fuel to fill up a battery, and they’re incredibly quiet.
If you want to increase electricity bill savings, you’ll need to look at your state and utility solar billing policies. Batteries won’t save you any additional money if your utility has a full-retail net metering program. You can see some savings if your utility requires time of use billing, but the additional savings could be minimal, depending on the rates.
Overall, batteries are worth it for homeowners who want a backup power source, who don’t have full-retail net metering, or who live somewhere with substantial battery rebates and incentives.
The best way to see if solar storage is right for you is by getting quotes from local solar installers. Not only can you compare installation prices, but they’ll help you figure out if battery storage meets your needs.
Want more information on Residential Solar Battery Storage Systems? Feel free to contact us.
See what local installers are charging for solar + battery storage installations