Enphase Energy Inc.

09/27/2024 | Press release | Distributed by Public on 09/27/2024 02:52

Is the cost of a solar battery worth the investment

Factors that affect your solar battery cost

While all solar storage installations incur the same types of expenses like hardware and overhead, the total cost of your battery system will depend on several factors unique to your project.

1. Solar energy storage capacity and quantity

The optimal battery capacity for your installation will depend on the size of your solar panel system, your home's electricity demand, and your overall energy goals. For example, if you would like complete solar energy self-sufficiency, you may need more batteries compared to someone who only wants backup power for occasional outages.

2. New installations vs existing solar energy systems

The total costs of battery storage will depend on whether it's part of a new energy system or integrated into an existing solar panel installation. In general, upgrading a solar system to include battery storage later is more expensive than when installing everything at once.

If you don't want to invest in storage when installing solar panels, you can save money on future upgrades by ensuring your inverter system is suited for battery integration. In the same sense, it's also possible to install a stand-alone home battery without solar panels.

3. Financial incentives and rebates

There are many financial solar incentives and rebates available to make solar battery installations more cost-effective. Most importantly, home solar and standalone energy storage systems at least 3 kWh in capacity may qualify buyers for a federal income tax credit (ITC) worth 30% of total project costs.

Beyond the federal ITC, there are also many incentives, rebates, and programs to reduce solar battery installation costs sponsored by local governments and utilities. For example, if you live in Minnesota, you may be eligible for a battery storage rebate worth up to $5,000, $7,000, or $15,000, depending on the size of your system, your electric utility, and your income qualifications.

When considering solar battery storage, consulting a professional installer is recommended to explore the available programs in your area, learn whether you'll qualify, and determine how to get started.