Solar Calculator Canada

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

FeatureSolar PanelsBattery Storage
Primary FunctionGenerate electricity from sunlightStore electricity for later use
Cost Range$21,000 – $48,000 (6-15 kW)$8,000 – $17,000 (10-32 kWh)
Payback Period8-14 years7-12 years (with TOU arbitrage)
Lifespan25-30 years10-15 years (3,650-6,000 cycles)
MaintenanceMinimal — occasional cleaningMinimal — firmware updates
Best ForOffsetting electricity consumptionPeak shaving, backup power, TOU arbitrage
Works Without Grid?No (grid-tied systems shut off)Yes — provides backup power
Ontario RebateUp to $5,000 (HRS)Up to $5,000 (HRS)
Space RequiredRoof 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 Estimate

Frequently Asked Questions