Solar Battery Leasing: Affordable, No-Purchase Energy Storage and Backup

Home batteries come with a load of benefits. They can keep your lights on during a power outage, form a nice complement to your solar panels, or help you increase your usage of clean energy. That’s not to mention their increasing role in stabilizing the grid (which you could also earn rewards for).

But, while the cost of batteries has come down, it still represents a significant upfront expense. Leasing can remove that upfront cost and secure you greater resilience in an outage and greater protection if something goes wrong.

Here’s what you need to know about battery leasing.

What is a solar battery lease?

With a battery lease, you get energy storage at home without the upfront cost of purchase and installation. Instead, you make predictable monthly payments for the equipment installed at your home and maintenance and service for any issues that arise. (Some battery leases may require an upfront installation or program cost that’s much lower than the cost to purchase and install a new battery.)

Battery leases can work for homes with or without solar panels, though their benefits may be different for each.

Benefits: Can a battery lease save me money?

Motivations for leasing energy storage at home vary, just like the benefits of leasing battery storage.

Energy backup

A key benefit of a battery lease is energy backup. During an outage, battery backup can keep your essentials powered. Keeping your internet, lighting, and refrigerator running can help you limit disruptions to your day. Backing up your heat and cooling can keep you comfortable.

Peace of mind

Batteries are proven technologies and becoming more capable every year. In many leases, many routine maintenance and repair tasks are included with a lease, so your battery works when you need it most.

Savings

While people go solar to save money, people get battery backup for security. Still, where avoiding grid energy is more valuable than selling excess electricity to the grid, batteries can help boost your savings by allowing you to use solar electricity, even after the sun sets. Backup generators can’t do that. The cost-savings analysis for a battery is highly location-specific, so speak with a trusted solar advisor about your situation.

Grid program participation

Virtual, or distributed, power plants aggregate thousands of home energy devices into networks that can add electricity to the grid to keep it balanced, affordable, and secure. In regions with programs available, you may be able to earn bill credits or other payments for participating in these programs with your battery.

Predictable cost

Solar batteries have come down over the last decade, but still represent a significant one time cost. Leasing spreads that cost out over time, replacing the one-time lump sum with predictable monthly payments.

Flexible end of term options

At the end of your lease, you have options. Renew with your same system at a lower cost, upgrade your system on a new agreement, buy your existing system, or simply walk away. Your end of term options will vary by leasing product, so double check your options.

What if something goes wrong with my battery?

Energy storage systems are installed in thousands of homes and have proven themselves to be reliable technology.

If something does go wrong, many routine maintenance and repair tasks are included in typical lease programs. For covered issues, the leasing company will carry out any necessary repairs.

What happens at the end of a battery lease?

At the end of a battery lease, you typically have a few options.

Renew your lease

Keep your same system and sign a new deal with a lower payment, based on the market value of your battery.

Start a new lease

Start over fresh with the latest battery technology, which is sure to have changed in the 10-12 years since your lease started.

Buy out your system

Buy the system at its current market value. You own it for the rest of its useful life.

Walk away

Decide you don’t need a battery anymore? Walk away. The leasing company will decommission and remove the battery.

Interested in solar battery storage? Reach out to Palmetto for a free quote, with or without solar panels.

Frequently asked questions

How long is an energy storage lease?

Energy storage leases typically last from 10-12 years. You’ll have options for moving forward after the initial term.

How much does an energy storage lease cost?

The cost of an energy storage lease will vary with the size of your system, the equipment involved, and whether or not it’s rolled in with a solar lease. In any case, you’ll trade the upfront cost of purchase and installation for a predictable monthly payment.