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Solar Battery Prices: Is It Worth Buying a Battery in 2025?
As power outages increase nationwide, the idea of clean, quiet, and instantaneous battery backup power is growing in popularity among American homeowners.
But how much does home battery storage cost?
In this article, we’ll explore solar battery prices and six factors that influence the cost of installing a battery.
Did you know? Congress is moving to terminate the 30% tax credit for residential battery storage at the end of 2025. Home batteries will need to be installed by December 31, 2025 to qualify for this tax credit before it’s gone. Start your project today to claim this credit before it’s gone!
Jump ahead:
- The average cost of a solar battery in 2025
- Six factors that influence battery costs
- Is solar battery worth the cost?
- Why are solar batteries so expensive?
- Frequently asked questions
Let’s dive right in with the big question: How much do solar batteries cost in 2025?
What is the average cost of a solar battery in 2025?
Installing home battery storage typically costs between $6,000 and $18,000, according to live pricing from solar.com’s installation network.
Why such a wide range? The biggest factor is size, measured by how many kilowatt-hours (kWh) of electricity the battery can store. Battery systems can range from 5 to 40 kWh, depending on your energy needs.
Battery prices also vary by brand, capabilities, and installation factors. We’ll explore these factors later.
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Solar battery cost per kWh
On average, it costs around $1,300 per kWh to install a battery before incentives. With the 30% federal tax credit applied, the cost is closer to $1,000 per kWh.
Here’s what that looks like for common battery system sizes:
| Battery size | Avg. cost before tax credit | Avg. cost after tax credit |
| 5 kWh | $6,500 | $5,000 |
| 13.5 kWh | $17,550 | $13,500 |
| 20 kWh | $26,000 | $20,000 |
| 40 kWh | $52,000 | $40,000 |
Now that we have a baseline for solar battery prices, let’s take a look at some factors that can influence the total project cost.
Six factors that influence solar battery costs
In general, battery prices are declining rapidly as the technology improves and more and more homeowners install them. However, there are still a number of factors that can influence the cost of your battery installation.
Solar Battery Price Factor 1: Your battery capacity
The biggest factor that impacts the price of a solar battery is its capacity – the total amount of energy that it can store. For instance, there are 5 kWh batteries used mostly for improving the economics of solar, and there are 40 kWh battery systems that can back up your entire home during a power outage.
While larger systems come with a higher price tag, you’ll likely pay less per kilowatt-hour of storage.
Solar Battery Price Factor 2: DC vs AC
DC batteries like LG Chem tend to be less expensive than AC batteries since they’re less complex to configure (see chart below).
The kicker is that DC batteries are difficult to add to existing solar systems and, depending on the solar equipment, a DC battery may not be an option for all systems. On the other hand, AC batteries like the Tesla Powerwall can be configured into any new and existing solar system with relative ease.
Solar Battery Price Factor 3: Balance of System (BOS) Equipment
Installing a solar battery is not as simple as sticking a battery to the wall and running a wire to the main electrical panel. There are other important pieces of equipment that are critical to enabling home batteries to provide backup power.
The type, scope, and complexity of your balance of system equipment will influence the price of your overall project.
Backup Gateway
The backup gateway is a device that detects power outages and isolates the home from the electric grid. In that respect, it’s similar to a transfer switch for a generator. This is a critical component for allowing the solar battery to provide backup power without back-feeding power to the grid.
Image courtesy: Tesla
Critical Loads Panel
Most solar batteries have enough power to back up circuits up to 30amps. Therefore, the majority of battery systems do not back up the entire home, but rather just the circuits that are most important to the homeowner.
Therefore, installing a solar battery usually requires the installation of a sub-panel, often referred to as a “critical loads panel”, that houses the important circuits that will be backed up in an outage.
When the outage occurs, the backup gateway isolates the home from the grid and switches the battery to feed the critical loads panel, rather than the whole main electrical panel. This switchover only takes a fraction of a second – homeowners won’t even see their lights flicker!
Related reading: How Long Can Solar Battery Power a House During an Outage?
Whole-home backups are possible with batteries, although doing so will require multiple batteries, as sufficient battery power is required for even the highest-amperage, most energy-intensive applications in the home. As a result, the majority of homeowners opt for a critical loads backup to save the cost of multiple batteries.
Solar Battery Price Factor 4: Battery installers
After spending thousands of dollars on a solar battery, it’s best to make sure that the battery is installed properly, fully permitted, and functioning as intended for its full lifetime.
It’s therefore essential to install the battery using a vetted and experienced company that has experience with these systems. Going with a pro might cost a bit more upfront, but it’s totally worth it to avoid time and money to fix mistakes later on.
If it’s worth doing, it’s worth doing right!
Solar Battery Price Factor 5: Incentives
Incentives also have a significant impact on the cost of a solar battery system.
The most widely available incentive is the 30% federal tax credit. This is the same credit that applies to solar systems as well.
However, this credit is headed for an abrupt end, with Congress moving to eliminate it at the end of 2025. Residential solar and battery systems will need to be installed by December 31, 2025 to qualify for a 30% federal tax credit. In 2026 and beyond, there will be no credit for homeowners to claim.
A couple of local battery incentives include:
Solar Battery Price Factor 6: Financing
Just like a house or car, home batteries can be financed to spread the upfront cost over a long period of time. If you buy solar and battery together, you can finance them together in the same loan. There are also financing options available for buying a battery on its own.
The upside to financing is that you can access the benefits of solar and/or battery with no money down, as long as you qualify for the loan. The downside is interest payments on the loan accrue over time to increase the overall cost of the system.
For example, using the example from earlier, financing a 7.9 kW solar system and 12.5 kWh battery with a 20-year loan (with zero money down) would cost nearly $47,000 while paying cash would cost around $30,000.
It’s worth noting that most solar and battery loans allow you to pay off the loan early and you can also make a down payment to lower the monthly principal and interest payments.
Is a Solar Battery Worth the Cost?
Whether solar battery storage is worth the cost in 2025 is totally up to you and your energy goals.
If you experience frequent or long-lasting power outages, then having battery storage for backup power can be a game-changer in keeping you safe, productive, and comfortable (not to mention keeping your food from spoiling!).
Batteries are also used as a cost-savings tool in areas with unfavorable net metering policies, most notably California’s NEM 3.0 solar billing. In this case, the upfront cost of battery storage more than pays for itself by increasing monthly bill savings.
If battery storage isn’t in the cards right now, keep a close eye on battery prices going forward! The cost of solar batteries is forecasted to continue falling at a rapid pace as the industry matures and new technologies emerge.
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Why are solar batteries so expensive?
There are a handful of factors that influence the price of solar batteries, but perhaps the greatest reason they are expensive is simply because residential-scale batteries are a newer technology, and new technologies tend to be expensive at first before rapidly falling in price as the market matures.
For example, a 60-inch 4K TV cost around $9,000 in 2012. Today, you can walk into Target and buy a 65-inch 4K TV for under $400.
Lithium-ion batteries are on a similar trajectory, with the cost per kWh of individual battery cells falling 97% from 1991 to 2018.
It’s also important to put the cost of solar batteries into perspective. Sure, $27,000 for a solar and battery system sounds like a lot of money – and it is – but it’s far less expensive than paying for grid electricity over time.
The cost of solar & battery versus grid electricity
Take the largest utility in the US – Pacific Gas & Electric (PG&E) – which serves over 5 million households in California and regularly makes headlines for its planned and unplanned grid outages.
PG&E customers currently pay 38 cents per kWh on average for electricity. If that price rises at a conservative rate of 3% per year, the average customer would pay nearly $92,000 for electricity over 20 years.
Suddenly, home solar and battery storage don’t seem so expensive… And that’s not to mention the time, money, and comfort saved by having backup power during grid outages.
Frequently asked questions
What is the average cost of a solar panel battery?
A fully-installed 13.5 kWh solar battery costs $13,500 on average, after claiming the 30% tax credit. This price can vary from project to project as there are many factors that influence battery storage costs.
How long will a 10kW battery last?
Most 10 kW solar batteries have warranties that guarantee 70% usable capacity after 10-12 years or a certain number of charge/discharge cycles. It’s worth noting that manufacturer warranties are typically quite conservative and the solar and battery equipment currently in deployment is far outperforming their warranties.
We simply won’t know exactly how long today’s batteries will last until they reach their useful end-of-life decades from now.
Is it worth adding a battery with solar panels?
Adding battery storage to a solar system is particularly worthwhile for homeowners who:
- Experience frequent and/or long-lasting grid outages
- Have critical systems (medical devices, water pumps, etc.) that run on electricity
- Want to store and use their own clean solar production, rather than pulling dirty electricity from the grid
- Have time-of-use rates and/or unfavorable net metering compensation
- Desire energy independence
- Want to contribute to a more resilient power grid and/or be ready to participate in Virtual Power Plant (VPP) arrangements
There are many reasons to add battery storage to a solar system – whether it’s worth it or not is up to you!
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