When you run to the store to grab a pack of AAA batteries for the TV remote, you’re probably not pausing to consider the price.
But when we start talking about home batteries, large batteries that act as a backup power source for your home, cost suddenly becomes important. Home batteries (sometimes referred to as solar batteries) are a significant investment that can reach into the tens of thousands of dollars. And if you decide to add a home battery to your solar panel system, it can get even pricier. Some home batteries can cost just as much as the solar panel system itself.
“Home batteries are becoming more of a household name,” said Cameron McDonald, vice president of merchandising, planning and inventory at Batteries Plus.
If you’re interested in adding one of these batteries to your home, one of the most pressing questions on your mind is likely: how much is this going to cost? Just like with any major home improvement project, the price range for what you’ll spend can get pretty wide. However, experts have a few guidelines to follow when it comes to estimating the price tags of home batteries. Here’s what you should know.
How much does a home battery cost?
Home battery pricing is tricky, mainly due to the site-dependent nature of the installation. Every home is different. A home battery estimate for your neighbor’s house will likely look different than an estimate for your own home. To get the most accurate estimate possible for your home, you’ll need to talk to an installer. However, there are a few rules of thumb you can use to get a ballpark estimate.
One way you can estimate the cost of a battery is by its energy storage capacity, measured in kilowatt hours. The average cost of a professionally installed, grid-tied home battery is generally between $1,000 to $1,500 per kWh, according to McDonald. This means if you want a 12 kWh battery, expect to pay anywhere from $12,000 to $18,000, fully installed.
While this is a good rule to follow, it’s possible to find a home battery cheaper than that. The Tesla Powerwall 3, for example, is a 13.5 kWh battery, and its price starts at around $9,300, according to Tesla’s online estimation tool.
If you were to purchase the battery on its own without installation, the range is about $700 to $900 per kWh, McDonald said. But that scenario is less common: “The market is still leaned heavily toward professional, grid-tied solutions, which requires a licensed electrician to install it,” he said.
Because batteries range in size so much, you could get a home battery installed for less than $5,000, or more than $30,000. There’s a battery out there for all kinds of budgets, but larger high-tech battery systems are going to cost more. Here’s a quick glance at the price ranges for some of the most popular home batteries on the market. And again, these prices should be taken with a grain of salt.
Average home battery costs
| Battery | Average cost | Energy storage capacity (kilowatt-hour) |
|---|---|---|
| Tesla Powerwall 3 | $9,300 | 13.5 kWh |
| Enphase IQ Battery 5P | $3,000 – $5,000 | 4.96 kWh |
| Bluetti EP900 | $10,300 – $17,300 | 9 kWh – 18 kWh |
| Generac Pwrcell | $10,000 – $20,000 | 9 kWh – 18 kWh |
| SolarEdge Home Battery | $5,500 – $8,000 | 9.7 kWh |
| LG ESS Home 8 | $10,000 – $12,000 | 14.4 kWh |
Factors affecting the cost of home batteries
So what’s behind this enormous range in battery costs? Here’s a breakdown of the factors that affect the price.
Energy storage capacity
The cost of a battery tracks pretty directly to its energy storage capacity. The more storage you want, the more money you’re going to spend. There are some economies of scale that kick in on the higher end, but the general rule of thumb still applies.
The average home battery usually has an energy storage capacity between 10 and 15 kWh, so you can expect to pay at least $10,000 for something within that capacity range.
Warranty
Every home battery should come with a limited warranty. The industry standard for home battery warranties is about 10 years, McDonald said. But some companies will offer extended warranties for a higher price.
McDonald cautions buyers about paying extra for an extended warranty. It’s important to make sure the company can actually honor a 12- or 15-year warranty. If the retailer has only been around for six months, can you trust they’ll be around more than a decade from now? “Stick with brands that can honor a 10-year warranty,” and avoid paying extra for a longer one you won’t be able to use, McDonald said.
Not every manufacturer sticks to the 10-year warranty standard. Some companies will offer a 12-year (or even 15-year) limited warranty at no extra charge for their home battery systems. The Panasonic Evervolt, for example, comes with a 12-year warranty, and Sonnen’s EcoLinx battery comes with a 15-year warranty. But these types of warranties are uncommon.
Brand or manufacturer
Like most other product categories, some brands of batteries are going to be more expensive than others. Don’t get too caught up in the name itself, but “you want to make sure it’s from a reputable manufacturer that’s been around and can honor their warranties,” McDonald said. You might be able to get a better “deal” from an upstart brand, but you run the risk of the warranty being useless if they go under.
At the end of the day, the most important thing is finding a battery that meets your energy needs, goals and budget. But it’s also important to do your research. Take some time to look into the battery’s manufacturer. Were there any recalls? What seem to be the most common complaints people have with the company?
Are home batteries worth the cost?
One of the biggest reasons home batteries are exploding in popularity is that they can help save you money on your electricity bill. If you live in an area where your electric utility charges time-of-use rates, you’re susceptible to fluctuations in the amount you pay for electricity. A home battery can help you manage these fluctuating electric rates by powering your home with stored energy from the battery during the times of day when the cost of electricity is at its highest, and then charging back up when rates go back down.
This is especially helpful if you pair your battery with solar panels. Any excess electricity generated by your solar panels can be stored in your battery to be used later, instead of letting it go to waste or immediately selling it to the utility.
This varies from state to state, and utility to utility, but if you find yourself in this situation, you could easily see a return on investment on your battery, McDonald said.
Even if your utility doesn’t charge time of use rates, a home battery could still be worthwhile for peace of mind during power outages. Having backup power can be especially useful if you rely on medical devices or other essential electronics. And a home battery might be a better alternative than a noisy gas-powered generator.
Home batteries are also eligible for the residential clean energy credit, a federal tax credit offered through the Inflation Reduction Act. This tax credit allows you to claim up to 30% of the cost of your home battery installation on your taxes. You can talk to an installer to get a better estimate of how that would factor into the total price. “They should be able to help you crunch the numbers,” McDonald said.
While there are a lot of benefits to home batteries, they might not make sense for every home. If you don’t need backup power, and you can’t pair your battery with solar, it might be a harder expense to justify.
Source: CNET
