Some utilities offer a one-to-one value, meaning each kWh of power sent out will cover one kWh of utility bill costs. Hawaii includes batteries with solar at a much higher rate than the rest of the country (80%). Net metering is the process of exporting energy to the power grid in exchange for credits that can be used to offset utility bill costs. With a battery, the home is able to store energy during off-peak hours, which typically occur during the day when the solar array is producing the most. The battery can then export power to the home during on-peak hours, which are often in the evening as people return from work and run appliances and the array produces less power. Without a battery, homeowners are subject to whatever rate is being charged if the array is not actively producing.Ī third benefit is the ability of the battery to provide value in utilities without net metering. For example, a utility may charge a lower rate of $0.15/kWh during off-peak hours, and then increase the rate to $0.32/kWh. Utilities also use a billing design called time-of-use, which, similarly to demand charges, are intended to discourage power use during peak demand periods. A battery can be scheduled to discharge power during peak use times so that peak energy demand is smoothed, and demand charges are lower. Some utilities, including providers in Massachusetts, Arizona, and Illinois, charge an additional fee based on the maximum amount of power required over a single hour, or 15-minute period, in a given month. Energy storage can unlock more value in a solar system’s utility bill savings. With a battery, electricity can be charged and discharged in ways that optimize energy bill savings. Without a battery, a grid-tied home solar array will export any unused power directly to the grid in real-time. In part two of this two-part series, pv magazine reviews the capabilities of batteries beyond backup power, which was covered in part one, and evaluates costs, benefits, and timing. But it comes with a range of benefits that vary depending on the home’s electricity needs and experience with the utility company. A recent addition to the list of options is whether or not to attach a battery energy storage system.Ī battery can often add $10,000 or more to the total cost of a residential solar system, said EnergySage.
Attaching a solar array to a home is a long-term commitment, with many considerations, and one that offers great potential for energy bill savings.
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