A hybrid solar system combines solar panels and battery storage to provide a flexible and reliable way to power a home. It is designed to protect against planned and unplanned power interruptions.
It’s important to note that the term hybrid solar system tends to be confused with a hybrid system, which contemplates the combination of renewable energy sources such as wind and solar to generate electricity.
For the purpose of this guide, we’ll refer to the hybrid solar system that consists of solar + storage and is connected to the grid.
Learn more about hybrid solar systems in your journey to find the best solar installation system for your home.
Table of Contents
- Solar Power Systems
- Full Solar Systems vs. Hybrid Systems
- Factors to Consider When Installing Hybrid Solar Systems
- Solar Panel Maintenance Requirements
- Cost of Installation of Hybrid Solar Systems
- Battery Systems Statistics
- Gain Control with Hybrid Solar Solutions
- References
Solar Power Systems
Solar power systems are transforming how we harness energy, offering sustainable solutions for homes and businesses.
Below are the key reasons behind the system’s functionality and the utilization of solar energy in the U.S.
How It Works
A solar power system, in simple terms, allows you to tap into solar energy and use it as electricity to power your home.
It’s a system whose main component is the solar panel. These solar panels have photovoltaic cells that convert sunlight into electricity. Solar panels or solar modules form a solar array. You’ll need a solar racking system to mount the solar panels on a roof or another surface.
The solar panels collect DC electricity, which an inverter converts into AC electricity to power home appliances. The excess electricity that your solar panels produce is sent back to the grid.
With a solar battery, you can store solar energy for later use. Integrating battery storage into your solar system adds resiliency and efficiency to your setup.
Solar panel systems can be designed and configured differently, with the basics or more components interacting in a single system, but they usually fall under three major types, namely:
- Grid-tied solar system: Also known as an on-grid system, this kind of solar system has solar panels, an inverter, a power meter, and a two-way electric meter for solar panels that are connected to the grid. The main appeal of a grid-tied system is net metering, which is a policy that lets you earn credit from your utility company for the surplus energy produced by the solar system.
- Off-grid solar system: This system contemplates that you don’t have access to the utility grid and must thus have sufficient electricity at all times independently. To that end, you’ll probably need battery storage and a backup generator. A charge controller or a voltage regulator connected to the solar panels and batteries is needed on top of the solar panels and off-grid inverter.
- Hybrid solar system: This setup is a combination of the two systems above: being grid-tied should your solar panels not produce enough power and having a battery to store excess energy in the event of power outages and emergencies. Any extra energy after fully charging the battery can go to the grid. The hybrid solar setup is common nowadays, with home batteries offered together with new solar panel installations. It’s a setup designed to seamlessly access power from solar, battery, or utility companies.
Statistics of Usage of Solar Power Systems in the US
With increasing electricity costs, hybrid solar systems are becoming an essential solution for cost-conscious homeowners. The U.S. Energy Information Administration reports that the average price of electricity for residential customers rose to 16.94 cents per kilowatt hour in October 2024, up from 16.48 cents in October 2022.
Hybrid systems help lower energy requirements by using solar panels to generate energy while storing excess power for later use, reducing dependency on the grid.
This shift is especially important as, according to the Environmental Protection Agency, 60% of electricity in the U.S. is still produced by burning fossil fuels, driving higher greenhouse gas emissions.
A study conducted by the National Oceanic and Atmospheric Administration focused on tracking the levels of three major greenhouse gases: carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) in the atmosphere during the year 2022.
According to this study, carbon dioxide CO₂ is the most important contributor to climate change due to its volume of emissions, high concentration, and long-term effects. The chart below depicts the global monthly mean of atmospheric carbon dioxide (CO₂) levels in parts per million (ppm) from 1980 to 2020.
The data highlights that in 2020, the global average CO₂ concentration rose to 417.06 parts per million (ppm), marking the 11th year in a row with growth exceeding 2 ppm. This sustained rise reflects a continued reliance on fossil fuels such as coal, oil, and natural gas for electricity generation.
With CO₂ levels now 50% higher than pre-industrial levels, electricity production remains a key area to address in mitigating climate change impacts.
One promising solution to reduce global greenhouse gases is to use hybrid solar systems, which have become more affordable and accessible than ever. Solar installation prices have dropped by over 40% in the past decade, as noted by the Solar Energy Industries Association.
The graph below, by the Solar Energy Industries Association, further highlights how falling prices have fueled growth in solar capacity across the residential, commercial, and utility sectors.
According to the chart, from 2010 to 2024, the average price of residential solar systems dropped sharply, starting at approximately $6.65/Watt in 2010 and declining to under $3.28/Watt in 2024.
Commercial solar system prices have steadily decreased, dropping from around $5.92/Watt in 2010 to approximately $1.46/Watt by 2024.
Utility-scale installations experienced an even steeper decrease, going from nearly $4.40/Watt in 2010 to under $1.14/Watt in 2024, reflecting a cost reduction of nearly 75%. These changes highlight solar energy’s growing affordability and feasibility in all three sectors.
Meanwhile, incentives such as the 30% federal solar investment tax credit (ITC) and utility and state-level rebates continue to encourage solar adoption. Pairing these incentives with financing options, such as zero-down loans, has made solar power increasingly attainable.
As of 2020, the U.S. Energy Administration EIA reports that 3.7% of U.S. single-family homes generated electricity using small-scale solar systems, a figure that’s steadily climbing. With hybrid solar systems offering savings and sustainability, homeowners have more reasons to make the switch.
The table below, by Solar Energies Industries Association, showcases the top states by total installed solar capacity and its percentage of statewide electricity generation as of Q1 2024.
| State | Total solar installed (MW) | Percentage of solar in overall state/district’s electricity |
| California | 49,777 | 31.37% |
| Texas | 37,713 | 7.25% |
| Florida | 17,055 | 8.15% |
| North Carolina | 9,723 | 9.75% |
| Arizona | 9,533 | 12.67% |
| Nevada | 7,943 | 29.39% |
| Georgia | 7,281 | 6.44% |
| New Jersey | 5,479 | 7.68% |
| New York | 6,493 | 5.46% |
| Virginia | 6,009 | 7.52% |
| Massachusetts | 5,399 | 25.37% |
| Utah | 3,497 | 17.24% |
| Colorado | 4,245 | 11.17% |
| South Carolina | 2,589 | 3.5% |
| Illinois | 3,512 | 2.27% |
| Minnesota | 2,852 | 4.42% |
| Hawaii | 2,064 | 20.95% |
| Maryland | 2,355 | 6.77% |
| Indiana | 2,477 | 3.41% |
| New Mexico | 2,854 | 11.55% |
| Oregon | 1,904 | 4.13% |
| Connecticut | 1,632 | 4.17% |
| Wisconsin | 2,610 | 4.61% |
| Pennsylvania | 2,349 | 0.84% |
| Michigan | 1,548 | 1.67% |
| Ohio | 3,667 | 2.79% |
| Tennessee | 897 | 1.49% |
| Alabama | 862 | 0.87% |
| Idaho | 998 | 7.08% |
| Maine | 1,415 | 13.08% |
| Iowa | 704 | 1.51% |
| Rhode Island | 1,111 | 12.61% |
| Arkansas | 2,017 | 3.72% |
| Washington | 742 | 1.03% |
| Missouri | 708 | 1.36% |
| Mississippi | 1,397 | 1.72% |
| Vermont | 436 | 16.39% |
| Louisiana | 1,138 | 1.23% |
| Delaware | 295 | 7.5% |
| Montana | 311 | 1.77% |
| New Hampshire | 296 | 1.9% |
| Washington DC | 742 | 1.03% |
| Kentucky | 513 | 0.53% |
| Wyoming | 312 | 0.95% |
| Oklahoma | 376 | 0.5% |
| Kansas | 171 | 0.41% |
| Nebraska | 207 | 0.56% |
| West Virginia | 202 | 0.41% |
| Alaska | 31 | 0.3% |
| South Dakota | 268 | 1.59% |
| North Dakota | 2 | 0.01% |
Steven Roof, Earth and Environmental Sciences professor at Hampshire College, highlights that:
“We’re at a tipping point. If we don’t turn to renewable energy and stop burning fossil fuels, in 10 or 15 years, our ecosystems are going to be ravaged from climate change, and there’s going to be much greater costs.”
Full Solar Systems vs. Hybrid Systems
How does a hybrid solar system compare with other solar systems? The table below highlights the many factors you should consider before choosing a hybrid solar system for your property.
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Factors to Consider When Installing Hybrid Solar Systems
Installing a hybrid solar system involves careful planning to optimize performance and enhance energy efficiency for your home. Here’s what you need to know to make an informed decision and maximize your investment in sustainable energy.
Your Energy Consumption
How many solar panels do you need to power your home? How large should the battery be to serve as a backup? How big should your solar system be?
The U.S. Energy Information Administration reports that a U.S. household’s average annual electricity consumption was 10,791-kilowatt hours (kWh) in 2022. To better understand your own energy usage, start by estimating your average annual electricity consumption. There are simple calculators available to help you determine this.
Once you know your consumption, you can assess how many solar panels you’ll need. This depends not only on your energy usage but also on the efficiency of the solar panels in converting sunlight into electricity.
Your Property
The location of your property plays an important role in the performance of your hybrid solar system. Does your home get enough sunlight for solar panels? While they can still perform when it’s cloudy or raining, the panels are at their peak performance under direct sunlight.
Your roof is another important factor to consider. Shading, for instance, can block sunlight and reduce energy production. Removing obstructions, such as tree branches, is often necessary to maximize sunlight on your solar panels.
Additionally, roof orientation matters. According to the Department of Energy, solar panels should face south for maximum solar power production. This orientation is ideal but not an impediment to going solar for homeowners who don’t have south-facing roofs or are living in states that are not the sunniest.
Solar Equipment Options
Part of contacting solar installers is looking into the products they install, primarily solar panels, inverters, and battery solutions. Should you shop for your hybrid solar system today, you’ll come across these options for the following components.
Solar panels can be:
- Monocrystalline solar panels are considered to be the most efficient of the types mentioned here and the most expensive too.
- Polycrystalline (multi-crystalline) solar panels are known for being more cost-effective yet less efficient than monocrystalline panels.
- Thin-film solar panels are touted for their flexibility and lightweight, but their low efficiency is a downside.
For battery storage, the two popular types of solar batteries in the market and their main pros and cons are:
| Pros | Cons | |
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| Lead-acid batteries |
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Storage Capacity
Battery storage is becoming very important in solar system installations. It helps store renewable energy and makes the electricity grid more reliable and sustainable.
The chart below by the U.S. Energy Information Administration shows the growth of utility-scale battery storage in the U.S. from 2003 to 2023. It tracks the existing storage capacity (operating capacity) and the new capacity added each year (annual additions).
The chart shows that U.S. utility-scale battery storage capacity grew slowly from 2003 to 2015 but began to increase rapidly after 2016, reflecting the rising use of renewable energy such as solar and wind.
After 2020, growth accelerated rapidly, with annual capacity additions contributing to a total operating capacity of nearly 2,500 MW by 2023.
This growth highlights the increasing importance of battery storage in balancing renewable energy supply, improving grid reliability, and supporting the transition to cleaner energy sources.
The accompanying chart below by the U.S. Energy Information Administration highlights how utility-scale battery storage in 2020 was optimized based on application type and duration.
The chart illustrates how U.S. utility-scale battery storage in 2020 is optimized based on application type and duration. Batteries used solely for grid services have the shortest capacity-weighted average duration (1.15 hours), highlighting their role in rapid-response tasks such as grid stabilization.
Dual-purpose batteries, used for either grid services or electricity shifting, offer a moderate average duration (2.95 hours), balancing flexibility in their usage.
In contrast, batteries dedicated exclusively to electricity shifting have the longest average duration (4.15 hours). They are designed to store and supply energy over extended periods.
This demonstrates how differing battery technology designs cater to specific operational needs.
Depth of Discharge
Depth of Discharge (DoD) is another important consideration; this metric indicates the percentage of the battery’s stored energy that can be safely used without shortening its lifespan. Higher DoD percentages allow for greater utilization of the battery’s capacity.
Compatibility
It’s also essential to confirm whether the battery is compatible with the type of solar panels in your system and whether it can integrate into your setup, particularly if it’s an existing installation. Battery performance and efficiency can vary based on factors such as the inverter, charge controller, and system size.
Certain batteries only work with compatible solar panels or whether they can be integrated into an installation, especially if it’s an existing one. Check with solar installers for the most optimal combination of solar panels and batteries for your home.
Renowned businessman Thomas Edison stated:
“I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait until oil and coal run out before we tackle that. I wish I had more years left.”
Solar Panel Maintenance Requirements
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Inspect Solar Panels Regularly | Examine panels for physical damage such as cracks, scratches, or discoloration that could impact performance. Ensure all modules are securely mounted and free of obstructions. |
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Check Battery Health | In hybrid systems, the battery plays a key role in providing power during off-sunlight periods. Regularly monitor the charge cycles, capacity, and overall health of the battery and replace aging or malfunctioning batteries accordingly. |
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Inspect Inverter Performance | The inverter converts solar energy into usable electricity. Monitor inverter status lights, error codes, and output levels to ensure it’s operating within expected parameters. Address any signs of inefficiency promptly. |
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Monitor System Wiring | Evaluate the electrical connections and cables for wear, corrosion, or improper insulation. Secure loose wiring to prevent energy loss or potential safety risks. |
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Regularly Clean | Dust, dirt, bird droppings, and debris can accumulate on the surface of solar panels, blocking sunlight and reducing their efficiency. Clean the panels using a soft cloth, sponge, or a hose with water to gently remove the buildup. |
Maintenance helps prolong the life of solar equipment. Make sure it is included in your chosen solar plan or installation. Also, check what is covered and is not covered by each warranty.
You may not have to do the actual maintenance on the solar equipment, except for periodic cleaning and checking the battery health, and leave the more complicated tasks to the professionals.
Solar incentives and rebates
Solar incentives and rebates can make the switch to solar more attractive and affordable. You’ll either have to pay for the system in cash or finance it through a solar loan to take advantage of most incentives.
Take a look at some of the major incentives for your hybrid solar system installation:
- Claim a federal solar investment tax credit or 30% of the costs of solar PV panels, battery storage technology with a capacity of at least three-kilowatt hours, or other qualified solar expenses installed on your home during the relevant year.
- Check local and state solar incentives, tax exemptions, rebates, etc. Some states have solar battery programs, too. According to the NC Clean Energy Technology Center, here is a database for clean energy and incentives:
| State | Policies and Incentives |
| Washington | 83 |
| Idaho | 34 |
| Montana | 28 |
| North Dakota | 16 |
| Minnesota | 131 |
| Oregon | 101 |
| Wyoming | 18 |
| South Dakota | 20 |
| Iowa | 46 |
| Nebraska | 19 |
| California | 158 |
| Nevada | 25 |
| Utah | 28 |
| Colorado | 102 |
| Kansas | 12 |
| Missouri | 58 |
| Arkansas | 25 |
| Oklahoma | 31 |
| Texas | 115 |
| New Mexico | 41 |
| Arizona | 51 |
| Louisiana | 25 |
| Mississippi | 23 |
| Alabama | 21 |
| Florida | 76 |
| Georgia | 37 |
| South Carolina | 39 |
| North Carolina | 71 |
| Tennessee | 17 |
| Kentucky | 33 |
| Virginia | 45 |
| Delaware | 31 |
| Maryland | 72 |
| West Virginia | 8 |
| Ohio | 37 |
| Indiana | 61 |
| Illinois | 69 |
| Wisconsin | 50 |
| Michigan | 51 |
| New Jersey | 50 |
| Pennsylvania | 61 |
| New York | 95 |
| Connecticut | 46 |
| Rhode Island | 32 |
| Massachusetts | 88 |
| Vermont | 70 |
| New Hampshire | 43 |
| Maine | 30 |
| Alaska | 16 |
| Hawaii | 30 |
An article by the U.S. Department of Energy titled “Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics” gives an idea of how the tax credit works with other solar rebates.
Installing solar panels on your home may also increase its home value. It makes sense to own a solar-powered house in a state with robust solar + storage programs.
Cost of Installation of Hybrid Solar Systems
Suppose you install a hybrid solar system for your home today; how much will this home improvement project cost you? Here are examples to give you an idea of the cost.
Calculation 1
According to the NC Sustainable Energy Association, solar systems are estimated to cost between $3 and $5 per installed watt. For example, a typical 4-kilowatt (kW) system costs about $14,000 at $3.50 per watt. The federal tax credit (currently 30%) can reduce this cost. For a $14,000 system, the after-credit cost would be approximately $9,800.
Adding battery backup to a solar system increases costs due to the price of components like batteries and charge controllers.
Depending on system size, battery expenses, and additional customizations, installing a hybrid solar system today could cost between $12,000 and $20,000 after incentives.
Calculation 2
A report by the Maryland Energy Administration highlights that a solar system sized to meet 80% of a household’s annual energy needs (around 9,600 kWh/year) would require approximately 7.33 kW of capacity, based on the solar production estimate of 1,310 kWh per kW DC in Maryland.
The total cost for this system would be $18,325, including installation at $2.50 per watt. However, incentives help offset this cost. The federal solar tax credit provides a 30% benefit, reducing the total by $5,497.50.
Additionally, Maryland’s Residential Clean Energy Grant offers $80 per kW of installed capacity for a 7.33 kW system, which adds $586.40 in savings. After applying both the tax credit and the grant, the final cost for the system comes to $12,241.10.
Battery storage is not detailed in this calculation and would need to be considered separately for any hybrid solar setup.
Battery Systems Statistics
Battery storage plays a key role in hybrid solar systems, helping to store excess power and provide electricity during non-sunlight hours.
The chart below by the U.S. Energy Information Administration highlights the rapid growth of U.S. battery storage capacity from 2015 to 2025, driven by the increasing use of renewable energy.
The chart illustrates the sharp growth of U.S. battery storage capacity between 2015 and 2025, reflecting the expanding integration of renewable energy systems.
With hybrid solar systems relying on battery storage to optimize energy use and ensure power during non-sunlight hours, this growth supports the increasing adoption of such systems.
The statistics highlight a rise in energy independence, resilience, and sustainability as hybrid solar setups become a key component of modern energy infrastructure.
Gain Control with Hybrid Solar Solutions
Using solar power for your home is deemed to give you more control and independence, flexibility, and convenience, something that a hybrid solar system can offer. This hybrid solar system can have many configurations, but it’s solar + storage as connected to the grid in its basic form.
The main advantage of the hybrid solar system is energy security, providing reliability to an otherwise intermittent source of energy like solar.
With a hybrid solar system in place, you reduce your electricity consumption and in turn, lower your carbon footprint. It’s a win-win situation for you and the environment.
A decision as big as going solar comes with several considerations depending on your situation. The biggest one is the cost of the solar system, primarily driven by the battery.
Hopefully, this guide sheds light on hybrid solar systems. Stay tuned for more information.
References
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