Should I Get Battery Storage for My Solar Energy System?

Solar batteries enhance the efficiency of your solar system, allowing you to power your home with more clean, renewable energy and further reduce your reliance on grid power. The benefits are lower energy bills, a smaller carbon footprint, and backup power during outages. But is solar battery storage right for you?

While the advantages of storing excess solar energy your panels generate are clear, solar battery storage might not be suitable for everyone. In this blog, we explore how home solar batteries work, the benefits and potential drawbacks of adding battery storage to your solar system, how much solar batteries cost, and how to know if solar batteries are worth it for you. 

Key takeaways: 

• Solar batteries add numerous benefits to your solar power system, including lower energy bills, backup power during outages, increased energy independence, and improved energy efficiency. 
• While solar batteries require an upfront investment, you can take advantage of federal incentives to offset 30% of installation costs. 
• The easiest way to add battery storage to your solar system is to do so during your solar panel installation, but it’s also possible to add solar batteries to an existing system. 

How do home solar batteries work?

Solar batteries store excess energy produced by your solar panels during the day, so you can use it later when the sun isn’t shining, like at night or on cloudy days, or during power outages. Solar batteries can also store grid power, if you so desire, but this approach limits positive environmental impact due to the fact that grid electricity is generally made up of non-renewable sources. 

In most cases, solar panels will generate more electricity than your home needs at certain times of day. Without a solar battery, that extra energy is sent back to the grid. With a solar battery system, you can capture and store that surplus energy instead. This means that when you need extra energy, you can use your own stored solar power instead of drawing from the grid like usual. This can save you money on energy bills, but more importantly, it ensures that you always have power on reserve in the event of a blackout. Depending on the size of your solar array and capacity of your solar battery, you could potentially run your home mostly on solar power. 

Solar batteries store energy in direct current (DC) form and either connect to a hybrid inverter or come with their own built-in inverter that converts DC power into alternating current (AC) power for use in your home. If you already have an existing solar system, you can retrofit battery storage to enjoy a reliable backup energy source during outages or when your panels aren’t generating enough power. 

Benefits of adding battery storage to your existing solar panels

There are five key benefits of solar energy storage, including lower energy bills, backup power during outages, more energy independence, and contributing towards a cleaner environment. If you’re not sure whether battery power is right for you, let’s take a look at these benefits in more detail. 

1. Lower energy bills

Solar batteries can decrease your energy bills by significantly reducing the amount of electricity you need to buy from the grid. Many utilities use time-of-use pricing plans which charge higher electricity rates during peak demand periods. With a solar battery, you can store energy during off-peak hours, when electricity rates are lower, and use it during peak times to avoid higher electricity rates. You can think of this process as time-shifting.

2. Backup power during blackouts

One of the main benefits of solar battery storage is the ability to have backup power during outages. This means you can keep essential devices and appliances running even when the grid is down. This is especially valuable if you live in an area with frequent power outages or natural disasters. Batteries are also helpful if you, or a member of your family, rely on medical devices or other critical systems that need consistent electricity.

3. Reduce your carbon footprint

If you’re considering solar energy, chances are you’re also looking to lessen your impact on the environment. Adding a solar battery can further reduce your carbon footprint by allowing you to use more renewable energy to power your home. This means less reliance on fossil fuels and a smaller environmental impact overall.

4. Energy independence

Solar-plus-storage systems bring you closer to energy self-sufficiency. While most homes stay connected to the grid, having a battery allows you to use your solar energy more often, reducing your dependence on utility companies. This gives you more control over your energy sources and costs.

5. Manage your energy better

Many solar battery systems include monitoring features that provide valuable insights into your energy production, storage, and consumption. These features allow you to better control and optimize your energy use to maximize savings and be more energy-efficient. 

Potential drawbacks of battery storage

There are some potential drawbacks of battery storage that might make them less suitable for certain homeowners, including upfront costs, lifespan, and additional maintenance considerations. 

Upfront costs

One of the main concerns around adding battery storage is the initial investment. For some homeowners, the upfront investment may outweigh the benefits. Before opting for battery storage, it’s important to evaluate whether it would make financial sense and align with your energy goals. A reputable solar consultant will be able to show you options for various batteries and the respective payback periods you can achieve through different scenarios.  

Limited lifespan

Unlike solar panels, which can last 25 years or more, solar batteries have a lifespan that ranges from 5 to 15 years, depending on the type of battery and how frequently you discharge and recharge it. This means you may need to replace your solar battery at least once during the life of your solar panel system, adding to your overall expenses. 

Maintenance

Solar batteries require some level of maintenance and care, such as monitoring charge levels and making sure the system is functioning as it should. For some homeowners, this additional responsibility might feel like more hassle than it’s worth. 

What’s the easiest way to buy solar batteries?

The easiest way to buy solar batteries is to have battery storage added at the time of your solar panel installation. Firstly, this streamlines the installation process for your solar installers. They can complete the solar and battery installations at the same time, saving labor hours and reducing logistical costs. This means lower labor costs for you, as fewer hours on-site usually translates to a more affordable project overall. 

Secondly, adding solar batteries at the time of solar panel installation can reduce costs involved with permitting and utility connection. Many local regulations require permits for electrical work and solar installations, and these will usually be included in your total system price. If you’re installing both solar panels and batteries at the same time, the installer might only need to pull one permit for the whole job, rather than obtaining separate permits if the installations are done at different times. 

The same logic applies to grid connection: handling both the solar and battery at once can avoid additional fees and delays associated with reapplying to your utility for battery integration later. That said – if you already have solar panels installed, you can still add battery storage to your system. This is known as ‘retrofitting’ and we’ll cover your options later in this article. 

It’s also worth noting here that when adding solar and batteries together, rather than solar alone, the number of panels needed is often less. In that way, the savings you see on fewer panels can be applied to the battery purchase. 

What incentives are available for solar batteries?

You can offset the cost of installing solar batteries with the federal solar tax credit, which reduces installation costs by allowing you to deduct 30% of the system’s purchase price to your annual tax filing. This tax credit applies to both solar panels and battery storage systems and is available until 2032, thanks to the Inflation Reduction Act that was signed into law in 2022. 

To qualify for the federal tax credit, your solar battery must: 

• Be installed at a residence owned by the taxpayer 
• Have a capacity rating of 3 kWh or more. 

Note that the solar tax credit is not a rebate. This means you won't receive a direct payment. Instead, you’ll get a credit on your federal taxes to reduce the total amount you owe. For example, if you invest $10,000 in your installation, your tax credit would be worth $3,000.

See More: Federal Solar Tax Credit: Everything You Need to Know

Can I add battery storage later?

You can definitely add a battery to an existing solar panel system, but it’s not as easy as simply plugging a battery in. The cost and complexity of the process will depend on your current setup. Let’s look at your options when adding batteries to existing solar systems.

Option 1: Battery-ready solar systems

This is when you’ve installed solar panels knowing you’ll eventually add battery storage at some point. You’ve told your solar installers and they’ve designed and installed your traditional on-grid solar system in a way that makes it easy to add a solar battery in the future. 

This is the easiest and cheapest option to retrofit battery storage. If you think you want battery storage in the future but aren’t quite ready for it now, be sure to let your solar installers know so they can future-proof your system with batteries in mind. 

If you don’t have a battery-ready solar system, you’ll have to choose between an AC-coupled or DC-coupled solar battery. The process of retrofitting each of these battery types will differ.

Keep Reading: AC vs DC-Coupled Battery Storage: What You Need to Know

Option 2: DC-coupled storage systems

With a DC-coupled system, your existing solar-only inverter is replaced with a hybrid inverter designed to work with both your solar panels and the battery. The DC power generated by your solar panels directly charges the battery, which then passes through the hybrid inverter to be converted into AC electricity. This AC power then electrifies  your home’s appliances.

The main advantage of choosing a DC-coupled system is that you’ll lose less energy during the conversion process. Since power flows only from DC to AC, less energy is wasted compared to an AC-coupled system, where energy is converted back and forth. This means you’ll get more energy storage.

The drawback of retrofitting a DC-coupled system is higher upfront costs due to needing a new inverter and more complex installation. It might be a good option for you if your existing inverter is nearing the end of its life (most string inverters last around 15 years, whereas solar panels have a production lifespan well past 3 decades).

Option 3: AC-coupled storage system

With an AC-coupled system, you can keep your existing inverter and add a second inverter (known as a ‘storage inverter’) to charge the battery. In this setup, the DC power generated by your panels flows to your original inverter, where it’s converted to AC power. This power is then directed to your home, to your battery, or to the grid if your battery is fully charged. 

The main benefit of retrofitting an AC-coupled system is that it’s easier to install, more cost-efficient, and provides more flexibility in terms of location. AC-coupled systems are also compatible with a wide range of inverters and the lowest cost option if you don’t have a battery-ready solar system.  

The drawback of AC-coupled systems is that they result in slight energy losses. Since batteries store energy in DC form, you’ll have to convert the AC power back to DC before it can be stored in your battery. This extra conversion causes more energy to be lost compared to DC-coupling.

See: Everything You Need To Know About Solar Inverters 

When is solar battery storage worth it? 

Battery storage can be worth it if: 

• You want to maximize savings: With a solar battery, you can store energy generated during the day and use it in the evening when demand (and prices) are highest. This saves you money by avoiding higher utility rates. 

• You have essential appliances that cannot go down: Solar batteries can provide peace of mind that your home will remain powered during blackouts. This is especially important if you rely on medical devices, or live in a hot climate like Arizona where keeping the AC operational during an outage can be a matter of life and death. . 
• You want to reduce your carbon footprint: Solar battery storage can minimize your environmental impact by allowing you to use more clean solar energy and rely less on fossil-fuel-powered grid electricity. 

Continue Reading: How To Choose a Home Battery Backup System?

Summary: Should I get battery storage for my solar energy system?

Investing in solar battery storage can be a smart decision that saves you money on electricity bills, provides backup power during outages, and reduces your carbon footprint. However, for some homeowners, these benefits aren’t enough to justify the upfront costs involved. The best way to know if solar batteries are right for you is to consult with a solar professional who can analyze your energy consumption habits and weigh the costs of battery installation against potential savings. 

At Sun Valley Solar Solutions, we offer free, no-obligation consultations for Arizona homeowners interested in solar battery storage. Our friendly team can help you understand if solar battery storage is worth it for you and recommend specific battery systems that align with your energy needs and budget. If you have an existing solar installation, we can explore your options for retrofitting a solar battery. Contact us today to schedule a consultation.