Solar Panels vs Battery Storage
Should you get solar panels, a battery, or both? Compare costs, ROI, and functionality to make the right decision for your home.
Side-by-Side Comparison
| Feature | Solar Panels | Battery Storage |
|---|---|---|
| Primary Function | Generate electricity from sunlight | Store electricity for later use |
| Cost Range | $21,000 – $48,000 (6-15 kW) | $8,000 – $17,000 (10-32 kWh) |
| Payback Period | 8-14 years | 7-12 years (with TOU arbitrage) |
| Lifespan | 25-30 years | 10-15 years (3,650-6,000 cycles) |
| Maintenance | Minimal — occasional cleaning | Minimal — firmware updates |
| Best For | Offsetting electricity consumption | Peak shaving, backup power, TOU arbitrage |
| Works Without Grid? | No (grid-tied systems shut off) | Yes — provides backup power |
| Ontario Rebate | Up to $5,000 (HRS) | Up to $5,000 (HRS) |
| Space Required | Roof space (24 sq ft per panel) | Wall/floor space (3-6 sq ft) |
When Should You Add a Battery?
Strong case for a battery:
- You're on Ontario's ULO rate plan (3.9¢ vs 39.1¢ peak = 10x arbitrage)
- You want backup power during grid outages
- Your utility has significant TOU rate differentials
- You have a zero-export system and want to maximize self-consumption
Battery may not be needed if:
- You're on a flat rate with no TOU differential
- You have net metering with full retail credit
- Your budget is limited — solar alone provides better ROI
- Your electricity rates are low (e.g., Quebec at 7.3¢/kWh)
Peak Shaving Explained
Peak shaving is the strategy of using battery storage to avoid purchasing electricity during the most expensive rate periods. Here's how it works with Ontario's ULO rate plan:
Charge: Battery charges overnight at 3.9¢/kWh (11 PM – 7 AM)
Hold: Battery holds charge during mid-peak hours
Discharge: Battery discharges during on-peak at 39.1¢/kWh (4–9 PM)
Savings: Each kWh shifted saves 35.2¢ (39.1¢ − 3.9¢)
A 16 kWh battery with 14.4 kWh usable capacity, cycling daily during peak hours, can save approximately $1,800-$2,200 per year through peak shaving alone — before accounting for solar production.
Compare Solar + Battery Options for Your Home
Our calculator models solar-only, battery-only, and combined systems to show you the optimal configuration.
Get Your Free EstimateFrequently Asked Questions
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