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Why Lithium Solar Batteries Rule the Market in 2025

Why Lithium Solar Batteries Rule the Market in 2025

Lithium solar batteries rule the energy storage market in 2025.

Lithium batteries are now the gold standard for solar energy storage.

Over the past few decades, we’ve watched lithium batteries evolve from a cutting-edge luxury product into the bread-and-butter pick for nearly every single energy storage application in the solar industry. As of 2025, lithium battery adoption is so total that they account for over 90% of our solar battery sales here at SolarTown.

While other battery types, like flooded lead-acid and AGM, still have limited use cases, they’ve mostly been phased out in favor of lithium. In the past, those batteries at least had the advantage of being cheaper compared to lithium batteries. But even that’s not the case anymore: lithium technology has improved so much in the past few years, they are now less expensive than other batteries with identical capacity.

Lithium is not just the better technology - it’s now cheaper, too.

In this article, we’ll cover the many advantages of lithium batteries, then explain some of the edge cases where you may need to opt for flooded or AGM instead.

Cost of Lithium battery technology over time

In the past, the main thing holding back the adoption of lithium batteries was their steep up-front cost. Over time, lithium batteries have become much more affordable, to the point where they now cost less than flooded or AGM batteries of the same capacity.

The cost of lithium batteries has dropped significantly in the past decade.

According to a 2024 study by Benchmark Mineral Intelligence (preserved via Our World In Data), lithium battery costs have fallen from $290 per kWh in 2014 to just $78 per kWh in 2024. By this point, the main historical argument for other battery types (lower up-front costs) has been completely erased, because lithium has closed the gap in terms of efficiency.

Advantages of Lithium Batteries

Cost Effective

Lithium batteries have actually been a solid choice for years now, even when they used to carry a steeper up-front cost. The argument used to be that you might pay twice as much for a lithium battery bank up front, but it would last you four times as long, so ultimately you’d cover your investment.

Of course, with lithium batteries dropping in price in recent years, the value gets even better. Not only are they more efficient over a longer lifespan, they’re now comparable in price to other battery types, so you don’t have to pool up more money for your initial investment into your system.

No Maintenance

The main appeal of a lithium battery bank is that you can “set it and forget it.” Lithium batteries require no maintenance or interaction on the owner’s part. These days they all come with internal computers (called Battery Management Systems, or BMS) to moderate things like state of charge, temperature levels, and so on. Most also have apps to provide automatic status updates and performance data to the owner.

Other battery types carry monthly maintenance tasks, like refilling water and manually monitoring state of charge. Critically, ignoring these tasks can reduce battery performance and, in unfortunately all-too-common cases, destroy the battery bank completely.

Given the choice - and the severity of the consequences - we find most of our customers prefer taking the path of least resistance with lithium batteries.

Longevity

Lithium batteries are simply built to last longer, with the typical warranty lasting between 10-15 years. In comparison, other batteries are warrantied for 3-7 years if properly maintained.

That last part is crucial: we’ve seen flooded battery banks die within 18 months because their owners never maintained them. Not only do lithium batteries have a longer theoretical lifespan - in practice, more of them reach the end of that lifespan because the maintenance requirements are so much less punishing.

Lenient Charge Requirements

“Depth of Discharge,” or DoD, describes the amount of battery capacity that can be used before a recharge is required. Lithium batteries have a recommended 80% DoD, compared to just 50% with other types, meaning that lithium battery banks can operate for longer before they need to recharge.

You can run lithium batteries all the way down to 0% charge with no (or minimal) ill effects as long as they are recharged in a timely fashion. The same isn’t true for traditional batteries - running past the recommended DoD can permanently compromise your battery bank.

You can also let lithium batteries sit unattended for long periods of time at partial SOC (State Of Charge), ideally between 50-80%. They can sit like that for months with no ill effects assuming that all loads are shut off. A lead-acid battery would probably be ruined under the same conditions, since they generally need to be brought to full charge once a week.

Cable Management

In lead-acid battery banks, cables need to be the same length due to Peukert’s Law While the details can be a bit dense (feel free to dive into the Wiki article), it boils down to this: your recharge rate changes depending on the length of the cabling. If you have different cable lengths, batteries will charge at different rates, and the imbalance in state of charge between batteries can compromise the entire battery bank.

Lithium batteries remove this limitation, which makes the design of battery banks a lot more flexible. There’s no more restrictions on the lengths of cables between your batteries, or from your batteries to your inverter, which removes a lot of the headaches from laying out your battery bank design.

Expandability

You can add new lithium batteries to an existing lithium battery bank without impacting the performance of the system.

You couldn’t do this with flooded batteries for many of the reasons mentioned in the section above: new and old batteries will charge and discharge at different rates, and will be cycling to a full state of charge at different times. Some batteries may be chronically undercharged, while others are constantly overcharged trying to bring the rest of the bank up to full.

That imbalance in state of charge is a killer for flooded battery banks - it often causes the new batteries to fail right alongside the old ones.

This probably isn’t nearly as pronounced with lithium, because the internal BMS works to balance the cells automatically, ensuring uniform charging across the entire battery bank. You may still see a drop in performance if you mix lithium batteries with vastly different wear levels, but it won’t actively harm the health of the system, the way it would with flooded batteries.

Lithium vs. Lead-Acid / AGM Batteries

I asked my team why you might choose lead-acid or AGM over lithium batteries, and the use cases were few and far between. Here’s what we came up with.

AGM batteries work best in very cold environments.

Extreme Cold

AGM batteries have the advantage of being able to operate in a lower temperature range. AGM would be a more reliable pick in sub-freezing environments, since lithium batteries can’t charge below freezing temperatures.

Even in cold environments, lithium still may be a viable pick since plenty come with built-in warmers to keep the internal temperature steady. You can also insulate the battery box and/or wrap them in a heat blanket to keep temperatures up.

However, our tech noted that warmers can’t keep up below 0 degrees Fahrenheit. So in more extreme conditions where you can’t temperature control the area, AGM batteries will be a much more reliable pick..

Legacy Projects

If you’re expanding an existing battery bank, you have to stick with the type of battery that’s already been installed. Essentially, the charging requirements vary too much between different battery types, making it functionally impossible to mix them together in a single battery bank.

So if you’re upgrading a legacy project full of flooded or AGMs, you won’t be able to add lithium batteries to your pre-existing battery bank.

Specific Space Limitations

The last edge case that came up was trying to fit a battery into a pre-existing enclosure. Flooded and AGM batteries can have a slightly smaller form factor, so they may be the only viable choice for a very small enclosure. This is a very obscure edge case, but we have seen it before when someone was trying to fit new batteries into an existing enclosure, so it’s worth bringing up.

In Conclusion: Lithium is a No-Brainer For Solar

When in doubt, use lithium. It’s cheaper (both up-front and long-term), it requires no maintenance, and has more longevity than any other option on the market right now.

Want to learn more? Take a look at our off-grid solar kits and grid-tied kits with battery backup on our storefront. We also sell lithium batteries separately if you are replacing an existing battery bank or building a new one.

Need help sizing your battery bank or designing your system? Reach out to us for a free solar consultation today!

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