Battery Lease vs. Purchase: Which Fits Your Needs?
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Author
Andrew Blok
Electrification and Solar Writer and Editor
With extreme weather causing more power outages, you might be considering a home battery backup. And as solar adoption grows, many homeowners are looking for ways to get even more from their system. Even though battery prices have dropped dramatically over the last ten years, the initial cost of buying and installing a battery can still feel like a huge hurdle.
That's where battery leasing comes in — it's a relatively new option that lets you sidestep that high upfront cost. Is leasing the right path for you? Let's break down how leasing a battery stacks up against buying one outright.
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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.
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.
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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. 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 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
