Are you considering both solar panels and battery storage and are wondering about the costs involved?
Having a solar panel system with a battery offers numerous benefits. With a battery, you can store surplus energy and use it later instead of buying electricity from the grid. The Energy Savings Trust notes that you can save around 14p for every unit of electricity you store and use.
A solar battery allows you to earn money by taking advantage of time-of-use tariffs, where you store energy at cheap, off-peak times and sell when prices are high. Storing and using more of your clean energy will also reduce your carbon emissions and reliance on the grid.
But what is the price of solar batteries, and what factors will influence the costs? Here’s everything you need to know about solar panel battery costs.
Quick Takeaways:
- Solar batteries can cost between £2,000 and £6,000.
- Battery costs can vary depending on the battery type, size, brand, lifespan, capacity, and installation costs.
- A battery can help reduce your energy bills by allowing you to use more of the clean energy from your panels.
How Much Will You Pay for A Solar Battery in the UK?
Solar battery costs can fall between £2,000 and £6,000, but this can vary. The Energy Savings Trust states that battery storage costs can range from £5,000 to £8,000, depending on the size of your energy generation technology and current energy use.
Generally, you’ll likely pay more for the battery if you need a higher storage capacity. Keep in mind that greater capacities translate to bigger and heavier batteries.
The table below shows a brief comparison of the prices of different batteries, excluding installation costs:
| Battery | Capacity | Weight (kg) | Price |
|---|---|---|---|
| Enphase AC Battery | 1.2kWh | 23 | £1,699 |
| SolaX Battery System | 3.3kWh or 6.5kWh | 26 or 44 | £1,920+ |
| Duracell Energy Bank | 3.3kWh | 96 | £4,499 |
| LG Chem Resu | 3.3kWh | 33 | £5,545+ |
| Tesla Powerwall | 13.5kWh | 125 | £6,200 |
What Factors Impact Solar Battery Costs?
Solar battery costs can vary widely due to various factors. These include:
Battery Size
A solar battery’s size refers to how much energy it can store or its capacity and is measured in kilowatt-hours (kWh). It directly influences how much you pay for the solar battery. Generally, the more storage capacity a solar battery offers, the more expensive it will be since it can store more energy.
The battery size that suits your home will depend on factors like how much electricity you use, the size of your solar system, the amount of space in your home, and whether you anticipate changes that will increase your energy usage. Getting an appropriately sized battery is crucial.
A battery that’s too big will cost you more and take up more space, and your solar panels won’t be able to fill it. A battery that’s too small won’t be able to satisfy your energy needs, and you may lose out on potential savings.
Here are some examples of appropriate battery sizes based on house size and solar panel power output:
| House Size | Power Output (kWp) | Solar Battery Size |
|---|---|---|
| 1-2 bedrooms | 2.1 kWp (6 panels) | 4 kWh |
| 3 bedrooms | 3.5 kWp (10 panels) | 5 kWh |
| 4+ bedrooms | 4.9 kWp (14 panels) | 10 kWh |
Battery Lifespan
Battery lifespan refers to how long it will last before you need to replace it. One essential indicator of a solar battery’s lifespan is its lifecycle. Batteries with a greater number of cycles have a longer lifespan and will generally cost more upfront. However, they can be more cost-effective long-term since they don’t require frequent replacement.
The battery cycle is how long it can fully charge and discharge energy. The more times it can do this, the longer it will last. The average solar battery usually lasts for around 10 to 15 years. This is around half the expectancy of a solar panel system, so you may need to buy a solar battery twice during your solar system’s lifespan.
The Brand
The brand name attached to the battery can also impact its price. Some companies can feature premium prices to position themselves as high-end or prestigious. Other companies will charge more because they’re highly regarded and trusted than other brands.
Some brands can feature higher prices because of their features or warranty policies. Batteries with features like Emergency Power Supply (EPS) functions will likely cost more. The warranty length will also impact how much you pay for the battery, with longer warranties costing more.
Battery Type
The type of battery you choose will significantly affect the overall cost. The two main types of solar panel batteries include:
- Lead Acid Solar Batteries
These have been around for a long time and are one of the cheapest options available. A 4kWh lead acid solar battery can cost around £2,000 on average and offer 1,800 lifecycles, translating to around five years when used daily.
Lead-acid batteries are cheaper in the short term but are considered outdated and inefficient compared to more modern options. They have a shorter lifespan and a significantly lower depth of discharge (DoD), which is how much you can use the battery before recharging it.
- Lithium-ion Solar Batteries
Lithium-ion batteries are more expensive but still enjoy a more significant market share in residential solar panel systems. A 4kWh lithium-ion solar battery can cost around £4,000 on average, double that of a similar lead-acid battery.
However, they’re more cost-effective thanks to their longer lifespan and better performance. For example, a 4kWh lithium-ion battery can feature around 4,000 lifecycles and a DoD of up to 90%. They’re also more compact and lightweight, with higher storage capacities and faster charging speeds.
Installation Costs
Solar battery installation costs will vary depending on factors like the battery size, the property’s layout, and your location. Some areas, like London, feature higher labour costs. Any additional equipment or modification needed can also increase the costs.
It’s usually more economical to install the solar battery when installing solar panels. Most solar providers will offer a discount when you buy the panels and battery as a bundle. You can also save on labour costs since you’ll install everything simultaneously instead of paying for two installations.
Do Solar Battery Costs Include VAT?
No. Since February 2024, solar batteries for residential accommodations qualify for the 0% VAT relief. The zero-rate VAT for installing energy-saving materials (ESMs), including solar panels, was introduced in April 2022 and will run until 31 March 2027.
Batteries for storing energy qualify for relief whether they are installed with solar panels, added to an existing panel system, or installed as a standalone technology.
Previously, you had to install them with solar panels to qualify for the 0% VAT relief, meaning you’d pay the standard 20% rate if you added them later after installing the panels.
After consultations with relevant stakeholders, the government recognised that batteries qualify for VAT relief in their own right since they can help reduce reliance on the grid and cut down carbon emissions and energy bills. Therefore, you’ll not pay any tax for solar batteries.
Are There Financing Options to Cover Battery Costs?
If you don’t have the funds to pay for the battery upfront, you may need to consider a loan. However, you’ll want to determine whether the battery’s benefits outweigh the loan’s costs. Consider factors like how much you can earn by exporting the surplus energy you store in the battery and the savings you make by reducing reliance on grid electricity.
You can also get a grant or interest-free loan for a battery if you live in Scotland. The Home Energy Scotland Grant and Loan scheme allows you to apply for up to £6,000 for an energy storage system. However, the battery must be part of a package of measures.
What Are the Pros and Cons of Solar Panel Batteries?
Pros
- Reduced Energy Bills – Storing energy in your battery reduces your reliance on the grid when your solar panels aren’t generating electricity, helping you reduce your energy bills.
- Lower Carbon Footprint – A battery allows you to use more of your low-carbon energy and reduce your reliance on energy sources that negatively impact the environment.
- Back-Up Power Source – A battery gives you greater freedom from the grid and can provide a reliable power source during outages or when there’s a high demand on the grid.
- Time of Use Tariffs – A battery allows you to use time of use tariffs when electricity is cheaper. You can store electricity when it’s more affordable and use it to avoid expensive periods.
Cons
- Added Expense — Buying a solar battery is an added expense that increases the system’s total cost.
- More Space Needed — You’ll need more space to house the battery and the connections. The battery’s storage capacity will impact its dimensions, and you may need a dedicated space for it.
- You May Make Multiple Purchases — Since solar batteries last 10 to 15 years, you may need to purchase the battery at least twice during the lifespan of your solar panel system.
Final Thoughts on Solar Battery Costs
Solar battery costs can vary depending on size, type, lifespan, brand, and installation costs. They can be a worthwhile investment if you want to use more of the clean energy you generate with your panels and reduce your energy bills. They can also help you earn extra money by allowing you to store energy when it’s cheap and sell it when prices rise.
Sources and References
- https://www.gov.scot/policies/renewable-and-low-carbon-energy/local-and-small-scale-renewables/#:~:text=You%20can%20apply%20for%20up%20to%20two,a%20heat%20meter%20alongside%20a%20heat%20pump).
- https://energysavingtrust.org.uk/advice/solar-panels/
- https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086