Battery Lease vs. Purchase: Which Option is Best for You?
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Author
Andrew Blok
Electrification and Solar Writer and Editor
Increased outages from extreme weather, rising electricity prices, and growing solar adoption, might inspire you to install a backup battery at home. But, despite battery prices coming down dramatically in the last decade, the cost of buying and installing a battery can still make some people hesitate.
Battery leasing is a relatively new way to avoid that high upfront cost. If you’re wondering if it’s right for you, here’s how it stacks up to buying a battery.
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Upfront cost
When you purchase a home battery, the upfront cost can be around $10,000. With a battery lease, there’s no upfront cost (or just a much smaller program or installation fee). Instead, you make flat, affordable monthly payments that cover the cost of the battery, installation, and ongoing monitoring and maintenance.
Access to tax credits
Consumer tax credits for people who purchased solar panels or batteries (not to mention heat pumps or electric vehicles) expired at the end of 2025. But, companies can still access a tax credit for leased battery systems, with or without solar, and pass some of those savings on to customers through lower monthly payments.
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 on the hook for making it right.
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Backup power and solar compatibility
Whether you buy or lease, your battery can be compatible with both backing up your home in an outage or storing and discharging energy generated on your roof.
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. Finding programs available to you and signing up may be easier with the help of a leasing company.
| Lease | Purchase | |
|---|---|---|
| Backup power | Yes | Yes |
| Payment | Predictable monthly payments | Large upfront payment(s) |
| Ownership | Leasing company | You |
| Tax credit access | Yes. Dealer claims | No |
| Maintenance and repair | Covered issues included | Not included |
| Grid program participation | Where available | Where available |
Curious if home battery storage is right for you and your home? Reach out today to get a quote for purchasing or leasing a home battery or download the Palmetto app to learn how your home uses energy and earn discounts on a home battery.
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Frequently asked questions
What is a 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.
