How Much Do Solar Battery Storage Systems Cost?

By Shelley Frost

September 23, 2024

Cloudy, rainy days are perfect for watching a movie marathon or cuddling up with a good book, but they're not so great for a solar energy system.

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In a traditional solar power system, you only receive power from your panels when the sun is shining. A battery backup system resolves that issue.

What Are Solar Battery Systems?

Solar panels collect sunlight, turning it into power, which the system directs into your home. If you have panels without a battery backup, you receive energy from your solar panels as long as the sun is shining. When it's not, you need an alternative energy source. For homes connected to the grid, that typically means using power from the grid.

When you add solar batteries to home systems, you have a way to store the excess power while the sun is out. Then, you can use it at night or during the day when the sun isn't shining. It helps you spread out the power usage and rely less on alternative energy sources. Depending on how much energy you store in the household battery system, you might have enough electricity to power your home with solar energy only.

How Much Does It Cost to Add Battery Storage to a Solar System?

Whether you already have solar panels or are thinking about adding them, you can choose to include a battery storage system. Understanding the costs involved can help you decide if it's a good investment for you.

According to data from HomeGuide, you can expect the average solar battery storage system cost to range from $8,000 to $16,000 (CAD 10,888 to CAD 21,777). This pricing is without any tax credits you might receive. If you qualify for tax credits, those savings could make the battery system cost between $5,600 and $11,200 (CAD 7,622 and CAD 15,244). Keep in mind that tax credits can change at any time, and you might not qualify for them.

Breaking down the costs a little more can help you prepare for this addition:

The battery itself typically costs between $6,000 and $13,000 (CAD 8,166 and CAD 17,694).
The installation labor averages between $2,000 and $3,000 (CAD 2,722 and CAD 4,083).

The capacity is a major factor in the average solar battery storage system cost. You can expect to pay between $600 and $1,000 (CAD 817 and CAD 1,361) per kWh of capacity.

Solar Battery Storage: Price Factors

While the capacity is one of the largest factors in the solar battery price, other characteristics that affect it include:

Battery type. Batteries for solar panels use different power sources. Lithium-iron phosphate batteries typically cost the most, but they last longer, are more efficient and contain fewer toxic chemicals. Nickel, magnesium, cobalt and lead acid batteries cost less but don't last as long and aren't as efficient.
AC or DC. You can also choose between AC and DC batteries, which operate slightly differently. You'll save money on the unit cost of a DC battery, but you'll spend more on installation because they're more complicated. Meanwhile, AC systems are more expensive and less efficient, but they're easier to install.
Number of batteries. If you want a system that powers everything in your home, you may need multiple batteries. The more batteries you install, the higher your costs.
Installation timing. Having a solar battery bank installed with your panels could save you money on installation costs. It can be more complex to retrofit an existing system with a good solar battery that's compatible with the equipment you already have. You could pay 30% to 50% more for the installation costs if you're having a battery system installed later.

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Is the Solar Battery Storage System Cost Worth It?

Solar power batteries for homes with solar panels are convenient and could save you money over time. You don't have to rely on backup power from the grid or other sources when the sun's not shining. It's also beneficial to check on local, state and federal incentives for adding the battery system. Receiving those financial incentives could offset the cost of the system enough to make it worth it to you. It comes down to your budget and personal preferences on how you want your system to work.

All CAD conversions are based on the exchange rate on the date of publication.

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