Photovoltaic panels vs lithium batteries, which one is more worth investing in?

Many people struggle with the question of whether to choose photovoltaic panels or lithium-ion battery energy storage for their homes. The two aren’t competitors, but rather “best partners.” Consider these three factors: First, return on investment. A photovoltaic panel (10kW) requires an initial investment of 30,000 yuan, generates an annual profit of 5,000 yuan, pays back in six years, and has a lifespan of 25 years. A lithium-ion battery (10kWh) requires an investment of 20,000 yuan, has a lifespan of 10 years, and can only provide backup power if used alone; it won’t generate any profit. Second, functional requirements. If your home experiences frequent power outages, lithium-ion battery storage is essential. If you simply want to save on electricity, photovoltaic panels alone are sufficient. Third, policy support. Photovoltaic panels receive national subsidies, while lithium-ion batteries currently receive subsidies only in some provinces (for example, Guangdong offers a 20% subsidy).

My advice: prioritize photovoltaic panels, wait for 2-3 years for profitability, and then install lithium-ion batteries. This approach minimizes cost pressures. For example, my family installed a 10kW photovoltaic system, saving 5,000 yuan per year. Three years later, I added a 10kWh lithium battery. Now, even during power outages, I can still use electricity. In the summer, I can avoid peak electricity prices (charging during off-peak hours and using electricity during peak hours), saving an additional 150 yuan per month. Lithium battery prices will drop by 15% in 2024, making it a good time to install more.