A lead acid battery system may cost hundreds or thousands of dollars less than a similarly-sized lithium-ion setup - lithium-ion batteries currently cost anywhere from $5,000 to $15,000 including installation, and this range can go higher or lower depending on the size of system you need.
Battery storage is becoming an increasingly popular addition to solar energy systems. Two of the most common battery chemistry types are lithium-ion and lead acid. As their names imply, lithium-ion batteries are made with the metal lithium, while lead-acid batteries are made with lead. How do lithium-ion and lead acid batteries work?
Lead-acid batteries are generally less expensive upfront compared to lithium-ion batteries. For example, a typical lead-acid battery might cost around $100-$200 per kilowatt-hour (kWh) capacity. In contrast, a lithium-ion battery could range from $300 to $500 per kWh. Battery Capacity:
Cost and Maintenance: While Lead-acid batteries are more affordable upfront and have a proven track record, they require more maintenance and have a shorter lifespan. Lithium-ion batteries, though more expensive initially, offer reduced long-term costs due to lower maintenance needs and longer operational life.
Cost Considerations: Initial Cost: For situations where money is tight, lead-acid batteries are an appealing choice since they usually require less initial investment. Total Cost of Ownership: However, factors such as the need for replacement sooner and potential maintenance costs may impact the total cost of ownership over the battery’s lifespan.
In summary, the total cost of ownership per usable kWh is about 2.8 times cheaper for a lithium-based solution than for a lead acid solution. We note that despite the higher facial cost of Lithium technology, the cost per stored and supplied kWh remains much lower than for Lead-Acid technology.