Is it worth installing a home battery in Ontario?
Home batteries are becoming more affordable each year. According to a recent report from EnergySage, the average cost of home battery storage fell 16% between 2023 and 2024. But that doesn’t mean it is the right solution for everyone.
The financial impact of home energy storage will depend on where you live in Ontario and how your utility rates are structured. If you have high time-of-use (TOU) rates and access to tax incentives, home battery storage can provide you with a solid return.
Here’s a quick and easy way to maximize your savings with home energy storage:
Step 1: Charge your battery at night or during off-peak hours when electricity rates are lower.
Step 2: Use that stored energy to power your home during times when rates are more expensive
Most homeowners will see a payback period of 8-12 years when combining solar panels with home energy storage. But that number can be different for everybody. You can take the steps below to get a more accurate estimate:
- Calculate the upfront cost (battery + labour and permitting – rebates and incentives)
- Estimate your annual savings with TOU optimization
- Now divide the net cost by your annual savings to see how many years it will take to break even
For example, let’s say your total net cost for installing the battery is $7,500 CAD and your projected annual savings is $1,000 CAD. That means your payback period is around 7.5 years. Every year after that, your system is generating a positive return. So a system that lasts 10 years will save you $2,500 CAD in energy bills.
But there’s more to consider beyond financials. Think of energy storage like insurance — some people find it worthwhile and others don’t. It depends on your energy goals and your environment.
We recommend home energy storage to homeowners who…
- Are working toward a Net-Zero home
- Have high TOU rates
- Live in an area that is prone to planned or unplanned power outages
- Want a backup power source
- Don’t have full-retail net metering
- Qualify for substantial rebates or tax incentives
- Recently purchased — or are considering — an electric vehicle
The best way to know if home battery storage is right for you is to contact a local solar installer. They help you assess your energy needs and provide an accurate estimate. On top of that, they will also help you compare products and design a custom solar system for your home.
Ontario residents can also take advantage of the Home Renovation Savings Program to save up to $5000 on the cost of home battery storage. Learn more about the Home Renovation Savings Program.
Ready to take the next step?
As an Ontario homeowner, you can expect to pay between $12,000 and $20,000 to have a home battery installed. But that cost can be significantly lower if you take advantage of available tax incentives like the Home Renovation Savings Program. Contact us for a free no obligation quote for your home energy storage and residential solar panels in Ontario.
