Aug. 18, 2025
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Home solar panels are providing clean energy to more homeowners than ever before and lowering energy bills in the process. More and more people who go solar are also installing a battery, which can provide some backup power during an outage and, in some cases, boost your solar savings.
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If you’re looking to add a battery to your home (with or without solar panels) here’s what you need to know about how a home battery works, what it can do, and whether it’s a good fit for your home.
Home battery storage systems are large, stationary batteries that store energy for later use or during a blackout. While the Tesla Powerwall is the most widely known and installed home battery, the playing field is getting more crowded.
Home batteries can charge using grid power or solar power to use when the sun or the grid goes down.
Today’s batteries often come with energy management algorithms that let you set different priorities for your battery and solar system. Whether you want to use and store as much solar power as possible before sending it back to the grid, avoid buying electricity at the most expensive times, or just keep your battery charged up in case of a blackout, modern batteries can do that.
Battery systems require a few additional components, like an inverter (which converts the battery’s direct current electricity to the alternating current your house and the grid uses), mounting hardware, and additional wiring. Most battery manufacturers also have an app for managing your battery’s charge level and settings.
Batteries configured to back up your home in case of a power outage will have additional equipment and wiring that lets the battery isolate your home from the grid and send power to select circuits. Batteries without backup capabilities require less hardware and labor, making them less expensive projects overall.
The most common type of battery uses lithium-ion chemistry, like bigger versions of the batteries that power your or laptop. As battery technology matures, more flavors of the lithium-ion battery are popping up and entirely new battery chemistries could be on the horizon. Lithium iron phosphate batteries are a newer chemistry that is a bit safer, longer lasting, and better at high and low temperatures than some earlier lithium-ion batteries. That makes it an increasingly popular choice for home storage. Older lead acid batteries are less common in home energy storage but sometimes play a role.
Home batteries have plenty of benefits which vary with how you use them.
Batteries can protect you from blackouts, which have been increasing in frequency thanks to more severe weather and aging transmission infrastructure. On their own, batteries can keep your home’s essentials powered up during an outage, though without a way to charge, a battery may not get you through an extended outage.
Paired with solar panels, which can charge a battery throughout the day, home battery storage systems can keep your essentials running through an extended outage. The appliances you want to power with your batteries will determine how many you need. How much power those appliances require to both start and run are important considerations.
Batteries are essentially a requirement to keep solar panels running during a blackout. Without a backup battery, solar panels are designed to shut down with the grid for safety reasons.
Solar panels are financially beneficial in two ways: They let you avoid buying energy from your utility and, where programs are available, they let you sell energy back to it at the most valuable time.
Without a battery, solar panels let you avoid buying grid energy when the sun is out. Storing extra energy for later use can let you avoid even more.
Many utilities compensate you for the electricity your solar panels send back to the grid, though at different rates throughout the day. Storing that energy to sell back to the grid at the most valuable time is another way to boost the value of your solar panels. This is how it works for many Californians, thanks to NEM 3.0. In many other parts of the country, batteries may not save money, so their value comes from their backup ability.
Just like you can store electricity and use it to maximize your savings, you can do it to maximize the amount of clean solar energy you use. By storing extra solar power and using it later, you can maximize your savings and your environmental impact.
Choosing the right home battery requires matching it to your energy goals. Here’s what sets batteries apart.
Capacity: Capacity, measured in kilowatt-hours, is how much actual electricity a battery stores. A Tesla Powerwall has a 13.5 kWh capacity. A Generac PWRcell has a starting capacity of 9 kWhs that can increase in increments of 3 kWhs up to 18 kWhs.
Power rating: Power output is typically given in two numbers: continuous and peak. Continuous output is how much power the battery can release at a continuous rate. Peak output is how much a battery can release over a shorter time, typically a few seconds. Since many appliances require a brief burst of energy to start up, peak output is an important factor.
Warranty and lifespan: Like any battery, home batteries degrade with time and use. Warranties are typically measured in years and charge-discharge cycles. If a warranty guarantees 70% capacity for 10 years and 7,000 cycles, you should have at least 70% of the battery’s original capacity at least until reaching either of those benchmarks.
Efficiency: No battery system is 100% efficient. A battery with a 90% efficiency will give you 9 kWhs of electricity for every 10 kWhs you put in.
To get an idea of how much energy capacity and power output you need, first decide what you’ll need in an emergency. The fewer appliances you back up, the less battery capacity and power required. A professional battery installer will be able to advise you, but you can get an idea by looking at the appliances you want to back up.
You can find your appliances’ energy requirements on a sticker attached to the appliance itself or in the owner’s manual. In my apartment, my refrigerator draws 517.5 watts, my microwave draws watts, and my water heater draws 4,500 watts. If all of those were running continuously for an hour they’d consume about watt-hours, or 6.5 kWhs, about half a Powerwall’s capacity. None of these appliances run continuously, though.
Another way to think about your battery capacity needs is through your average consumption. In , the average American household bought about 900 kWhs of electricity each month, or about 30 kWhs each day, though you’ll likely use less when trying to conserve energy during a blackout.
Here’s the base capacity of leading home batteries today.
The vast majority of people should hire a professional to install their batteries. The installation process may vary by installer but generally follows a few typical steps.
Lithium-ion batteries are low-maintenance technology. Aside from making sure you don’t drain them too low — which may be automated — as long as you don’t physically harm them, you shouldn’t have any problems.
Your battery will degrade, though that’s not something to worry about. Most batteries have a certain level of degradation covered in their warranty. If you believe your battery is performing below that level, contact the manufacturer.
A very small number of batteries have caught fire from a process known as thermal runaway. It’s not common but is more likely with damaged, poorly manufactured, or poorly installed batteries. If your battery is damaged after installation, get it inspected by a professional.
A home battery installation can cost more than $10,000, but it can enhance your solar savings and provide non-monetary benefits like keeping important systems powered up during an unexpected blackout.
Government incentives, like the 30% clean energy tax credit, can lop thousands of dollars off of that cost. Utilities may also have battery incentives. Xcel Energy offers rebates for batteries if you participate in occasional ‘control events,’ where the utility takes some of your battery’s stored energy to meet peak demand. Other utilities or third-party companies offer similar incentives.
Of the people who install home batteries, over 50% do so primarily for backup power, according to a survey of installers by SolarReviews. But even when the goal is resilience, batteries can earn some money back by joining a virtual power plant to send power to the grid when it’s needed.
Paired with solar, a home battery storage system can save you money in places where avoiding grid electricity is more valuable than sending solar power back to your utility. The percentage of solar installations with batteries attached jumped from 10% to 60% after California utilities changed from a net metering system to a net billing one, according to the Lawrence Berkeley National Laboratory.
Even though modern battery technology is sophisticated and capable, more innovation is on the way.
As big batteries become more common at homes and in cars, they’ll likely get cheaper. That would continue the trend of the last decade, according to BloombergNEF, which says battery packs cost $139/kWh in , down from $780/kWh in . BloombergNEF predicts prices as low as $80/kWh in . (This price isn’t for the finished product and includes batteries used in vehicles and stationary storage, like at home. It’s not representative of the price you’ll pay an installer, but does illustrate a real trend in price.)
Batteries will also likely get smarter. Many batteries can already work with complicated utility rates to help you avoid buying the most expensive electricity. As homes get more internet-connected devices, batteries will have more potential to be more specific and nimble in how they power your house. Technology like smart electric panels and breakers will increase their flexibility.
Batteries also stand to play a large role in the energy transition as more wind and solar power are added to the grid. Since the sun doesn’t always shine and the wind doesn’t always blow, storing energy for later use will be necessary. Expect virtual power plants and other compensation schemes for residential batteries to continue and expand.
Home battery storage systems offer resilience and additional energy savings, especially when paired with solar. They can help you weather a blackout, avoid expensive grid electricity, and let you use power from your solar panels, even after the sun goes down. Depending on where you live, your savings could be even greater with additional storage incentives or the option to join a virtual power plant.
To find out how solar and storage can reduce your monthly electric bill, start with Palmetto’s solar savings Cclculator and reach out to one of our solar advisors today for a personalized solar quote.
Are solar home battery storage systems worth it?
Batteries can save you more money than standalone solar in some parts of California. In other places, they may not pay for themselves in savings, but can provide valuable emergency backup power that’s cleaner and quieter than a generator.
Can a battery back up my house?
Backup batteries can provide emergency electricity during an outage. Often, they backup specific circuits in your home that power essential appliances or devices. You may have the option to set your battery up as an arbitrage, or consumption only, battery. These battery configurations don’t offer backup power.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Home solar panels can reduce your electricity bill for decades. But if you're left with questions like, “Really?” or, “What’s the catch?” or, “How do solar panels even work?” no one would blame you, though solar panels are now a commonplace technology.
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Further reading:Whether you’re paying the cost of solar panels upfront and buying them, or getting a solar lease, it’s important to understand your decision and investment. Asking the right questions can help you find the best installer for you and weed out any bad deals along the way.
To achieve the best possible experience when you go solar, let’s play a game of 20 questions you can ask at your next solar consultation.
While you’ll still receive an electricity bill after going solar, you should save money. While it’s impossible to predict exactly how much solar panels can save you, installers can give you a reasonable estimate. Your actual savings will depend on how much your electricity rates change and whether incentives like net metering shift during your solar panels’ lifespan.
Your savings will also shift throughout the year, thanks to solar seasonality. It’s useful to get a clear understanding of your potential savings throughout the year and over the projected lifetime of your solar installation.
Asking your installer about available incentives is important to maximizing the value of your investment. Whether or not you qualify for the federal solar tax credit and other local solar incentives may significantly impact the return on investment of your energy system.
Around the country, solar incentives vary greatly by state and region, with some cities, counties, and utilities offering their own programs, tax credits, tax exemptions, rebates, and more.
Decide whether you will buy or lease a solar system based on your personal preferences, financial goals, and available options and make sure your installer can deliver what you want.
Buying means the system is your property and, in most cases, you will save more over the lifetime of your systems. A lease or power purchase agreement, such as Palmetto’s LightReach Energy Plan, will give you solar power from a home system with no upfront cost and manageable monthly payments.
Unless you’re able to pay for your panels upfront or are leasing them, you may need to finance your system through a loan. Many reputable solar installers offer loans, though you can always shop around..
By working with a company with multiple financing options, you are more likely to find a solar loan structured to fit into your budget that can unlock your long-term savings on electricity.
One of the most common questions solar companies are asked is, “What type of panels do you install?”
While there are differences in performance among solar panels, you probably don’t need to stress over the options. In some instances it may be beneficial to pay a bit more for highly efficient solar panels, you can typically achieve your savings and energy goals with multiple solar panel options, so long as your installer can provide solar panels of typical efficiency (around 20%) and wattage (350 watts and above).
You will likely have multiple solar warranties (product, performance, installation) associated with your energy system.
Before signing on the dotted line, talk to your installer about exactly what each of these warranties covers, how long the coverage periods are, and if you can extend the policies during the lifetime of your solar panels.
Along with warranty coverage, you should talk to your installer about the likelihood of system damage and what repair or maintenance procedures will be, even if solar panel maintenance is typically infrequent.
If you’re covered by a maintenance and monitoring plan, your installer will have a dedicated customer service team that can field your request and repair the part as soon as possible, ensuring your system will be back up and running without excessive time offline.
If you purchase an electric vehicle or grow your family, your electricity consumption will grow. If you anticipate you may want to expand your solar energy system in the future, talk to your installer about this possibility and what an upgrade may look like.
Depending on system setup and available space, it may be a better idea to oversize your solar system initially rather than add panels later. Or, your installer may make expanding easier by designing a microinverter-based solar system.
A company that sets an installation timeline (and has the past projects to prove it) is more likely to deliver a good end result. When talking to your solar installer, ask them about the anticipated installation schedule.
Although they may not be able to tell you a precise interconnection date during your initial conversation, reputable companies should be able to provide a breakdown of your solar installation timeline, including permitting, equipment delivery, and construction.
If your installer has a referral program, it’s a strong sign they are used to delivering good customer experiences. As the best advocates for any company are its customers, many solar companies will compensate those who refer new business in bill credits or cash.
If a solar contractor gives you a price and doesn’t explain how they arrived at that number, it’s a red flag you may not be getting the best deal possible. Although the average cost of solar panels varies across the country, the total price of any solar energy system can be broken down into hard and soft costs, including expenses associated with hardware, permitting, labor, and business overhead.
Inverters turn the electricity your solar panels generate into electricity you can use at home. String inverters and micro-inverters are the two main options. As every home solar project is different, choosing the right technology can maximize your system performance and return on investment.
If you purchase or finance your solar energy system with a reputable solar installer, they should be able to forecast an approximate break-even point at which your system will have paid for itself in savings.
In general, solar panel payback periods average somewhere between 7-10 years, depending on your location, the size of your system, and many other factors. A solar installer should be able to break down the expected performance of your system as it relates to the price of electricity in your area over time.
Today, most solar panels are installed with smart components that report system performance directly to a digital landing page. The Palmetto App, for example, allows you to track your solar panel performance alongside your electricity consumption (with a supported meter).
Even though it may be 20-30 years or more into the future, asking your installer about the end of your system's lifespan can help you avoid unwanted surprises later on.
Solar companies that plan to be around for decades are sure to have an answer for you when you ask about the decommissioning process. Critically, the end of your lease contract may give you options, like renewing your lease at a new rate, or buying out the system at the market value.
In recent years, some solar companies have gone out of business. Working with an established, experienced solar company could help you avoid picking a company that’s going to go out of business.
A company able to answer all your questions in a helpful way without putting pressure on you is a sign of a partner you’ll be able to work with and depend on for a long time.
Solar can supply you with the electricity you need to run your house, but reducing the amount of electricity you need can lead to savings, too. Getting an energy audit, upgrading your insulation, or electrifying your HVAC system or water heater may open the door to greater savings.
Your solar installer should be definitive about the state of your roof before installing solar panels. Your roof should be healthy at the time of installation, and replacing your roof and installing solar at the same time can save you time and money.
Going solar can be a great time to also electrify your home with a heat pump or other efficient, electric appliances, install an EV charger, add battery storage, or replace your roof. Combining projects could save you time and money, especially if you use the same company, and let you stretch your solar electricity farther.
When weighing your solar options, you should feel free to open up the discussion and allow installers to explain exactly why they deserve the job. A professional solar expert should want to give you all the info you need rather than stick to a sales pitch and make you feel forced into a decision.
In a high-pressure sales scenario, you may start to feel a solar installation company is pushing you to sign a contract right there, right now. If you feel rushed, asking for some time to make your decision will quickly show whether or not the company is acting in your best interest or is simply out to get your money.
Occasionally impending policy changes mean you need to rush, but even with those caveats, a reputable company should be happy to do follow-up calls and help you feel confident in your choice.
The right solar company should answer all your questions and concerns today and seem like a partner you’ll want to work with for 25 years or longer. Before, during, and after installation, is the solar installer listening to you and your needs? Or pressuring you into a specific plan, design, product, or deadline?
Your new home solar power system should deliver savings and reliable, clean, and renewable energy. It should be easy to understand and operate without extra work or stress.
Interested in seeing what it's like going solar with Palmetto? Or still have questions about solar in general? Get started today by using our solar savings calculator or contacting a Palmetto solar expert.
How do you prepare for a solar installation?
Before you go solar, get to know your energy usage and current utility bills. You can check your property’s suitability for solar, including your roof’s health and shading, and confirm that tax credits, net metering, and other incentives apply to you.
How do you find a good solar installer?
It’s ok to interview and ask many, and even tough, questions of a solar installer before committing to a major project, a substantial amount of money, and years of working together. You are looking for a person or company that’s knowledgeable, experienced, professional, and helpful.
Can solar panels really save you money?
Millions of homes in the US are saving money with home solar panels. While solar panels aren’t a fit for every home, they can lower energy bills and generate long-term savings. A reputable solar company will be able to explain the savings potential of solar at your home, including when it’s too small to be worth it.
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