How Much Does a Solar Battery Storage System Cost?

Average Cost for a Solar Battery Storage System

Solar Battery Storage System Prices

Uninstalled, battery systems can cost anywhere from $800 to $10,000. Generally speaking, solar systems that can power an entire home cost between $5,000 to $7,000.

The price of your system will largely depend on the kilowatt-hours (kWh) to power your home or appliance. Expect to pay between $400/kWh to $750/kWh. For example, you might pay between $5,600 and $10,500 for a battery with 14 kWh of storage and around $2,000 to $3,800 for a five-kWh battery.

Solar Battery Storage System Installation Cost

Most solar panel battery costs range between $2,000 and $3,500 to install, though some smaller batteries can cost only $200. This depends on the amount of work the solar installation professional will need to do to complete the project. From connecting the solar battery to the solar panel to combining multiple solar batteries, this can vary drastically from one homeowner to another.

Including the battery, the cost of a solar storage system can range from $300 to $15,000. High-quality home solar batteries tend to cost between $5,000 and $7,000 for an average cost of $6,000, not including installation fees or other equipment. Keep in mind that some systems can cost upwards of $30,000, though this is the exception.

Solar Battery Storage System Cost by Type

There are three main types of batteries for solar battery storage systems. The most common types include lead-acid, lithium-ion, and lithium-iron-phosphate batteries. While lead-acid batteries have been around for longer and are “tried and true,” lithium-ion and lithium-iron-phosphate batteries are gaining popularity due to their lower maintenance requirements.

Lead-Acid Batteries

Expect to pay approximately $5,000 to $15,000 for a lead-acid battery storage system, including installation fees. Lead-acid batteries are the oldest form of solar battery technology on the market. These batteries have been around for over 150 years. Since they’ve been around longer, lead-acid batteries are the most affordable solar battery option. However, they also require more routine maintenance.

Lithium-Ion Batteries

Lithium-Ion batteries cost more than traditional lead-acid batteries, with total costs ranging from $7,000 to $30,000, depending on the brand. Lithium-ion batteries are commonly used in Tesla’s solar batteries. They are long-lasting, durable, and require little maintenance.

Lithium-Iron-Phosphate Batteries

Lithium-iron-phosphate batteries cost around $9,000 to $30,000 with installation. As one of the newest battery chemistries on the market, lithium-iron-phosphate batteries can withstand higher temperatures than lithium-ion batteries and also have a longer shelf life.

Solar Battery Storage System Installation Cost by Unit

Most solar battery systems are modular, meaning you can combine multiple batteries to generate more power. Your household’s energy usage will determine how many or what size batteries are best suited for you.

According to the U.S. Energy Information Association, the average home uses 28kWh a day or 877kWh a month. Look closely at the solar units you want to buy to make sure that they will generate enough energy to power your home.

Here’s a breakdown of how the installation cost might look by unit:

Small Solar Battery Storage System Units

Smaller solar batteries cost somewhere between $200 and $900.

Keep in mind that you can also stack your solar batteries, creating a circuit that connects and makes one larger unit. As such, you can customize the size and energy produced more specifically, helping to ensure that you stay within budget. This makes it more ideal for those who want larger unit systems without the costs.

In other words, depending on the number of kilowatts per hour (kWh) that your home consumes, you might be able to get by with fewer battery packs to generate for your household. On the other hand, if you want a partial backup for essential appliances, stacking smaller batteries that store fewer watts may also suffice.

Large Solar Battery Storage System Units

These units range from $4,000 to $11,000 on average, not including installation; however, some larger units can cost $30,000 or more. If you’re hoping to power an entire house, you probably don’t want to install a big stack of smaller units. Popular brands like Tesla, Sonnen, Sungrow, BYD, and Powerplus all offer larger units. You can still stack these batteries, but you might find that one larger system is enough to keep your home powered.

Solar Battery Storage System Installation Cost by Brand

There are several different brands offering solar batteries, from the popular Tesla Powerwall to the premium Electriq PowerPod 2. The Tesla and the General PWRcell are two of the most popular options based on quality, efficiency, customer service, and price.

Generac PWRcell Cost

The Generac PWRcell starts at around $11,500, all-in, assuming you already have a compatible solar panel system in place. If not, expect to pay an additional $10,000 to $15,000 for the solar panel costs.

Tesla Solar Battery Cost

Tesla Powerwalls cost around $12,000 each, including installation. Remember, though, that Tesla Powerwalls are only available as part of a solar system and storage package, not as standalone units. 

Solar Battery Storage System Cost Factors

Many factors impact how much you'll pay for your solar storage batteries. The key factor is whether you have the batteries installed as part of a new or existing solar system. While a complete solar system will cost you more, a new one will be more energy efficient if your existing system is old and outdated. Additionally, purchasing batteries at the same time as you install a new system can prove less expensive per battery.

AC vs. DC Batteries

You’ll also need to decide whether you want a direct current (DC) or an alternating current (AC) solar battery. Batteries naturally store DC electricity, but for your house to use that energy, it needs to be converted into AC electricity.

While some batteries have built-in inverters, others will require an additional purchase of an inverter. This additional purchase can cost anywhere from $1,000 to $1,500, but costs can be higher for larger homes that use more energy.

Backup Load Panel

Backup load panels cost an additional $1,000 to $2,000 per panel. A backup load panel, also known as a critical load panel, ensures that your most important electronics—like lights and refrigerator—will stay on, even during a power outage when your solar batteries don't contain enough stored energy to power everything.

Incentives and Tax Rebates

While not available everywhere, some kinds of incentives or tax rebates are available in many states for installing a solar system and solar battery storage. For example, California's Self Generation Incentive Program entitles you to a discount of up to $2,700 per Powerwall.

Other Solar Battery Cost Factors

Here are the other most significant cost factors for installing solar storage batteries:

• Energy capacity: A major cost factor is how much energy your battery can store. Units that store more kWh cost more than units that store less.

• Power: Your battery’s potential output is shown in kilowatts (kW) and determines how much electricity the battery can generate at a specific moment. Storage systems that are more efficient at storing energy are likely to cost more.

• Battery chemistry: Lithium-ion phosphate (LFP) batteries cost more than lead-acid batteries, with LFP batteries costing approximately 30% to 50% more than some of the cheapest batteries on the market.

• Quality: High-quality materials will run higher than low-quality materials.

• Upgraded features: Inbuilt inverters, smart technology, and other upgrades may add to the cost of your battery unit.

• Installation company: Some battery brands do not come with installation, as they’re solely for solar equipment. You may have to purchase the battery through the manufacturer and then find a separate installation company.

• Retrofitting an existing system: You’ll pay more to have a battery added to an existing solar panel than if you installed them at the same time.

• Electrical work: New battery systems often require electrical work, so you may need to add the cost of rerouting electrical wires. If this is the case, you might also need to have an inspection before starting the installation.

DIY vs. Hire a Solar Battery Storage System Installation Pro

For small solar battery storage systems, you might be able to DIY the installation process, but for larger, more complex battery systems that power an entire home, we recommend hiring a solar installation pro near you to do the job right.

A pro will be able to:

• Inspect the installation site

• Route any electrical wires

• Adhere to the manufacturer's warranty

• Answer any questions you have during the installation process

• Install the solar system in just a few days (in most cases)

• Recommend products for your home’s needs