Solar Battery Cost: A Detailed Price Breakdown
With the increasing adoption of solar energy, homeowners and businesses are exploring energy storage options to maximise their solar power usage. Solar batteries allow users to store excess energy generated during the day for use at night or during power outages. However, a crucial consideration for many consumers is the cost of installing a solar battery system. This blog focuses on providing a detailed breakdown of solar battery costs, factors influencing pricing, and key considerations for potential buyers.
How Much Do Solar Batteries Cost?
There isn’t a one-size-fits-all answer when it comes to solar battery costs. The price varies based on battery capacity, technology, brand, and installation costs. Generally, residential solar batteries cost between $1,000 and $1,300 per kWh of installed capacity. This means a 10 kWh battery could cost anywhere from $10,000 to $13,000, excluding any rebates or incentives.
Here’s a look at the typical installed prices for some of the most popular solar batteries in Australia:
| Battery System | Capacity | Approx. Installed Cost | Cost per kWh | Warranty |
| BYD* | 13.8 kWh | $12,000 | $870 | 10yrs, 60% |
| Tesla Powerwall 2 | 13.5 kWh | $15,500 | $1,150 | 10yrs, 70% |
| Sungrow* | 12.8 kWh | $11,200 | $875 | 10yrs, 60% |
| SolarEdge* | 9.7 kWh | $13,400 | $1,381 | 10yrs, 70% |
| Enphase | 5 kWh | $10,300 | $2,060 | 15yrs, 60% |
Note: Prices can change over time. The costs listed are average estimates at the time of writing.
*Prices do not include hybrid inverter costs, which may be shared with solar installation expenses.
Related Article: Should You Purchase a Solar Battery?
Factors That Influence Solar Battery Cost
Solar battery prices are gradually declining due to technological advancements and increased market demand. However, several factors continue to influence installation costs. Below are key aspects that affect pricing:
1. Battery Capacity
The storage capacity of a battery, measured in kilowatt-hours (kWh), significantly impacts its cost. Higher capacity batteries store more energy and are more expensive. While larger battery systems may have a higher upfront cost, they often provide a lower cost per kWh, making them more cost-effective in the long run.
2. Battery Chemistry
The type of battery chemistry used influences cost and performance. The most common chemistries in residential solar batteries are:
- Lithium Nickel Manganese Cobalt (NMC): Found in batteries like Tesla Powerwall 2 and LG Chem Resu.
- Lithium Iron Phosphate (LFP): Used in batteries like Sungrow, Goodwe, Huawei, and AlphaESS.
LFP batteries are typically 16% cheaper than NMC batteries, offering better safety and longevity.
3. Warranty and Lifespan
Cheaper batteries often come with shorter warranties. A high-quality battery will generally have a 10-year warranty that allows one full cycle per day while guaranteeing at least 70% capacity retention after a decade. Some warranties allow multiple cycles per day, which can be beneficial for maximising energy savings.
Learn More: How Long Do Solar Batteries Last?
4. DC vs. AC Battery Systems
- DC batteries (e.g., LG Chem) tend to be less expensive since they integrate more easily with new solar installations.
- AC batteries (e.g., Tesla Powerwall) are more versatile and can be installed in both new and existing solar systems, though they may cost more.
5. Balance of System (BOS) Equipment
Installing a solar battery requires additional components, including:
- Backup Gateway: A device that detects grid outages and isolates the home for uninterrupted backup power.
- Critical Loads Panel: A sub-panel that ensures only essential circuits receive power during an outage.
- Whole-Home Backup: Requires multiple batteries to support high-energy appliances, increasing costs.
6. Installation Costs and Labor
The expertise of the installer also plays a role in pricing. It’s crucial to hire experienced professionals to ensure proper setup, safety, and efficiency. While a skilled installer may charge more, proper installation prevents costly repairs and ensures longevity.
7. Incentives and Rebates
Government incentives, rebates, and tax credits can significantly reduce the cost of solar battery installation. Some regions offer rebates that cover up to 50% of the battery cost, making it more affordable for homeowners.
Conclusion
Investing in a solar battery system can enhance energy independence, reduce reliance on the grid, and maximise savings from solar panels. While upfront costs can be significant, factors such as battery capacity, chemistry, and installation expenses play a key role in pricing. By understanding these elements and leveraging available incentives, homeowners can make informed decisions and find the best solar battery solution for their needs.