Home Solar with Battery Storage

Solar-only systems produce energy in real time, so they don’t have storage capabilities. If you create more solar power than your home can use at any moment, you’ll have to send it somewhere else — either back to the grid or into equipment that has storage capacity — otherwise you’ll lose it. If your household uses energy outside of peak sun hours (typically late morning to mid-afternoon), then storage technology allows you to save the energy you produce and use it later on. Solar panels don’t.

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If you own your home and your area is subject to power outages or rolling blackouts, you’re concerned about rising electricity rates or you want to maximize the value of your solar system, you can benefit from battery storage with your solar panels.

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When you install solar battery backup with your rooftop array, you can save the energy your panels produce and use it at strategic times to reduce the amount of electricity you draw from the grid. This is particularly beneficial if your utility charges time-based rates (see next question for more detail). A battery is also helpful if you live in an area with net metering and the credit rate varies for the solar you send to the grid. By exporting when your energy is the most valuable to your utility, you can maximize your bill credits, which reduces the amount you owe for electricity each month.*

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A solar battery can be a powerful savings tool if you live in an area subject to time-based rates, meaning electricity prices vary based on season, time of day and day type (weekend or weekday). For instance, in California, the big utilities implement time-of-use (TOU) rates, charging more for electricity when demand is high (often 4-9 pm) to encourage customers to shift their consumption patterns and alleviate grid strain. With solar and battery storage, you don’t have to change your behavior to dodge TOU windows. By using your stored solar power when rates are the highest, you can continue cooking, doing laundry, using workout equipment, etc., in the evening without paying on-peak rates.

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If you own your system outright via cash or finance it with a loan, you may be eligible for various credits and incentives. If a third party owns your system and you finance it with a solar lease or power purchase agreement (PPA), you won’t qualify for incentives — only the party who owns the system can apply for tax credits and rebates. As the system owner, you may qualify for the 30% federal tax credit, which is a direct reduction in the amount of taxes you owe to the government. As long as your battery has a capacity of 3 kilowatt-hours (kWh) or more, your solar and battery system may qualify for this one-time credit.* You may also be eligible for state incentives and utility rebates, but these can change frequently, so it’s best to contact your utility to understand what’s available.*

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In almost all cases, your system must remain connected to your utility’s local grid, which provides electricity if you are using more energy than you are producing and have stored, your battery becomes drained or you’re saving your power for a looming storm. Therefore, if you have a solar system with battery backup, you’ll still get two bills: one from your solar provider and one for electricity from your utility. However, by strategically discharging your solar battery, you can minimize your monthly utility bill.

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