Solar Battery Storage: Costs, Benefits & Incentives

As electricity costs rise and wildfires get worse, more and more homeowners are turning to solar panels with battery storage. Solar panel batteries let you store solar energy for later use, giving you a bank of power you can tap into at night, on cloudy days, and during power outages. 

If you’re thinking about installing solar with battery backup, keep reading! This guide will cover everything you need to know, including how solar batteries work, the benefits of storage, cost considerations, available incentives, and answers to frequently asked questions.

How Solar Battery Storage Works

Solar panels generate a lot of electricity when the sun is shining—usually more than you can use at once. In most solar panel systems, the extra power is sent to the electric grid. If you have a battery, however, you can store the excess power instead. Later, when your solar panels aren’t producing electricity—like at night—you can use the stored energy to power your home. You can also use your stored solar energy for backup power during a grid outage. 

Benefits of Solar Battery Storage

Solar batteries have a lot of benefits, especially in California. 

1. Backup Power 

The number one benefit of a solar battery for most homeowners is backup power. A solar battery lets you use stored energy when the grid is down so you can keep your devices charged and your essentials running. If you don’t have a battery, your solar panels will automatically turn off during a power outage. With storms and wildfires getting worse, a solar panel and battery system provides invaluable peace of mind. 

2. Lower Electric Bills 

We have some of the highest electricity rates in the country in California, and they keep going up. Solar panels help reduce your bills, but they can’t generate power when its dark out. At night, you have to buy from the grid—unless you install a solar battery for your home. With a battery, you can use stored power at night, saving you money. 

This is especially beneficial if you’re on a time-of-use (TOU) rate plan. On a TOU plan, your rates are higher at certain times of day, when demand for power is high. For most utility companies, on-peak hours start in the evening, around the same time your solar panels stop producing electricity. With a battery, you can seamlessly switch to stored energy and avoid the higher rates. 

3. Better Return on Investment 

When you install solar panels with battery storage, you will likely see a faster return on your investment than if you install solar panels alone. This wasn’t always the case, but when California implemented NEM 3.0, things changed. Under NEM 3.0, you’re credited at a lower rate for the power you send to the grid. With a battery, you can store and use that energy yourself, reducing your reliance on the grid and stacking up your savings faster. 

4. More Environmentally Friendly 

A battery allows you to use more of your solar power and depend less on electricity from fossil fuels, reducing your home’s carbon footprint.

How Much Does Solar Battery Storage Cost?

A solar battery is an investment that will increase the cost of your solar installation. A battery will typically add around $10,000 to $15,000 to your solar panel installation costs. However, this number can vary depending on: 

• Type of Battery –  Some batteries, like the Tesla Powerwall, are more expensive but offer higher efficiency, longer lifespan, and better performance compared to other brands. 
• Number of Batteries – Some homeowners install multiple batteries to increase their backup capacity. The more batteries you install, the higher the cost—but also the greater the energy security and potential savings.
• Installation Complexity – If you’re adding a battery to an existing solar panel system that needs significant modifications, installation costs may be higher. 
• Incentives & Rebates – Solar battery tax credits and incentives can significantly reduce the cost of a battery storage for your home. 

Premo Solar installs several types of high-quality solar batteries, including the Tesla Powerwall, FranklinWH batteries, and Enphase batteries. We will help you compare your options and decide whether a solar battery is worth the cost for your home. 

Solar Battery Tax Credits & Incentives 

Installing a solar battery for your home in California is more affordable than ever thanks to tax credits and incentives. When you go solar with Premo Solar, we will help you take full advantage of the incentives available to maximize your savings. 

Solar Tax Credit for Battery Storage 

Solar batteries are eligible for the 30% federal solar tax credit. You can claim the tax credit whether you’re installing solar panels with battery storage, adding a battery to an existing solar panel system, or installing a standalone battery that charges from the electric grid instead of solar panels. 

SGIP Solar Battery Rebates 

The Self Generation Incentive Program (SGIP) provides rebates to California homeowners who install solar battery storage. To qualify, you must meet certain requirements, and there are higher rebate amounts available for income-eligible homeowners and homeowners who live in high-risk fire areas. 

FAQS About Solar Battery Storage 

How long do solar batteries last?

Most solar batteries have a lifespan of 10 to 15 years, though performance may degrade over time. Proper installation and battery management can extend their life. Learn more about solar battery lifespan.

How much backup power will a solar battery provide?

This depends on the size of your battery and energy usage. A typical home battery can power essential loads like lighting, refrigeration, and Wi-Fi for 10-24 hours. Check out our guide to sizing a solar battery.

Can I add a battery to my existing solar system?

Yes, in many cases, you can retrofit a battery to an existing solar system. However, some inverters may need an upgrade. 

Do you need a battery for solar panels? 

No, you can install solar panels without a battery. However, you will get more out of your investment with solar plus battery storage. And, without a battery, your solar panels won’t work during a power outage.

Is Solar Battery Storage Right for You? 

Solar battery storage is an excellent option for homeowners looking for energy resilience, lower electricity bills, and better control over their solar energy use. While the upfront cost can be significant, available incentives and long-term savings make batteries a smart investment for many.

If you’re ready to explore solar battery options for your home, reach out to Premo Solar. We are a local California solar company installing premium solar energy systems and battery backup options. Our expert team can help you decide whether solar plus storage makes sense for your home.

Get reliable backup power with solar plus battery storage. Call 831-901-3352 for a free solar battery estimate.