Battery lease vs. purchase: multiple choices for home energy storage
Last edited
Author
Andrew Blok
Electrification and Solar Writer and Editor
Whether you want to keep the lights on during an outage or get the most value from your solar panels, adding a home battery backup can be a smart move. But while battery prices have come down, buying one outright still requires a significant upfront investment.
Enter battery leasing, a flexible option that lets you skip the hefty upfront cost in exchange for a predictable monthly fee. We’ll break down the key differences between leasing and buying so you can easily choose the right path for your energy goals, lifestyle, and budget.
Comparing battery leasing and purchase
Here’s how the two options compare and contrast.
Upfront cost
When you purchase a home battery, the upfront cost can be around $10,000. With a solar battery lease, there’s no upfront cost (or just a much smaller program or installation fee). Instead, you make predictable monthly payments that cover the cost of the battery, installation, and ongoing monitoring and maintenance.
Maintenance and repair
When you purchase your battery, you’re on the hook for service issues that don’t fall under warranty. Even under warranty, labor costs may not be covered. With a lease, typical maintenance or repair is covered in your monthly payment.
Battery ownership
When you purchase a battery, you own it. When you lease, the leasing company retains ownership. That means if something goes wrong, they’re usually responsible for making it right.
Backup power and solar compatibility
Whether you buy or lease, your battery can both back up your home in an outage and store and discharge energy generated on your roof, depending on its configuration.
Participation in grid programs
Owned and leased batteries can participate in grid programs that utilize stored energy to support the grid and meet peak demand (often called distributed or virtual power plants).
| Lease | Purchase | |
|---|---|---|
| Backup power | Yes | Yes |
| Payment | Predictable monthly payments | Large upfront payment(s) |
| Upfront cost | $0 | Due on installation |
| Ownership | Leasing company | You |
| Maintenance and repair | Covered issues included | Not included |
| Grid program participation | Where available | Where available |
Palmetto’s battery lease, Energy Backup, tracks with these details and comes with a 12 year term. Paired with solar or without, a leased battery could provide stability and emergency backup in a blackout.
To see if a leased or purchased battery is a fit for your home, reach out today to get a free quote.
See what home electrification can do for you:
Frequently asked questions
What is a solar battery lease?
A battery lease is an alternative to purchasing a backup battery for your home. Instead of purchasing and installing a battery, you make a predictable monthly payment that covers the battery, installation, monitoring, and maintenance of the device.
Can a battery lease save you money?
Battery leasing isn’t necessarily designed to save you money, though in some places a battery can increase your solar savings. Some of the lease’s value comes from its other benefits: providing backup power during an outage, participating in grid programs that can earn you bill credits or other rewards, and a hands off experience in which the leasing company bears responsibility for many battery maintenance and repair issues.
Will a battery power my home in an outage?
Backup batteries are typically designed to backup “critical loads,” the electric devices you most need during an outage. These can include lighting, a Wi-Fi router, heating and cooling, and a refrigerator, among other options. Adding more batteries can increase the amount you can back up.
Can a battery attach to a leased solar panel system?
Yes. Solar and storage systems can be leased together. You can also lease battery storage or solar panels on their own.
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.
