How a Solar Energy Storage System Can Reduce Your Utility Bills
Solar energy storage systems are a way to reduce your utility bills. They can help you beat time-of-use rates that are higher during peak times after work and into the evening.
Energy storage is a key component of a solar energy system and there are several different types of batteries. Each has its own unique features and benefits.
1. Reduced Utility Bills
While solar power reduces a home’s electricity consumption, adding Solar energy storage system energy storage can further decrease utility bills. With solar plus storage, excess energy is stored in a home energy battery, protecting the system from outages and allowing the homeowner to use that energy during peak hours (4-9 p.m.).
During peak hours, the grid charges a much higher rate for electricity than it does during off-peak hours. With an energy storage system, a solar PV system can export its electricity during these peak hours to the grid for a financial benefit (depending on the local utility rates and policies, including net metering). This helps to significantly lower the customer’s electric bill.
Energy storage can also help reduce demand charges on commercial and industrial energy bills. These charges are based on the 15-minute periods of highest demand throughout a day and can account for up to 50 percent of a building’s energy bill. Energy storage systems paired with intelligent software can track a facility’s load, and dispatch battery power during these peak hours to reduce demand charges on the facility’s electricity bill.
2. Increased Home Value
Unlike other home improvement projects, such as installing a new kitchen, solar power will add real monetary value to your property. In fact, a study in the Appraisal Journal found that for every dollar reduction in annual energy costs, a home’s value increases by $20.
This is particularly true in areas with high utility rates, such as San Francisco and Los Angeles. Having a rooftop solar system in these regions can be especially beneficial for homeowners.
However, even homeowners in other parts of the country can benefit from solar’s increasing resale value. A solar energy storage system allows homeowners to capture the extra electricity generated by their solar panels during the day and discharge it at night when they need it, avoiding TOU rates.
This feature can be a major selling point for homes, as potential buyers can expect a premium in the asking price of a home with a solar energy storage system. If you’re going to sell your home, you should make sure that your solar energy system is in good condition and that you can transfer the lease to the next owner.
3. Increased Home Comfort
When coupled with solar panels, a battery storage system will keep vital equipment in your home working during power outages. This includes your heating and cooling systems as well as security systems. During a grid outage, these systems will continue to work, protecting your home from the elements as well as any potential invaders.
Solar power systems produce energy during the day, but at night and on cloudy days they can’t generate as much electricity. Energy storage bridges this gap by storing excess solar energy in batteries Solar energy storage system such as lithium-ion, which is also used to power electric vehicles.
Additionally, batteries allow solar customers to avoid drawing power from the utility during periods of peak demand. This saves money on electricity bills and can even prevent an outage from occurring during those times. Many homeowners purchase a solar-plus-storage system as a peace of mind investment for this reason.
4. Increased Energy Independence
If you live in an area with frequent electricity outages or your utility has Time-of-Use rates, a solar energy system paired with battery storage can help you achieve energy independence. This is because a solar power system that has been paired with battery storage can provide you with backup energy during outages and peak demand times.
In addition, a solar energy system with battery storage can help you avoid demand charges that are often included in commercial and industrial utility bills. These are based on 15-minute periods during the day when demand is at its highest. Batteries can track a building’s load and reduce energy consumption during these periods, eliminating the need to pay for expensive demand charge reduction services from a utility.
With a hybrid solar system, any excess energy generated by your solar panels during the day goes to the battery. This power is then brought into play during a power outage or at night when the Sun is not generating enough energy to run your home. In addition to avoiding energy costs from electricity retailers, you are also achieving energy independence and creating self-sufficiency.
5. Reduced Carbon Footprint
A solar energy storage system helps to reduce your home’s carbon footprint by cutting down the use of fossil fuels. This means less air pollution like nitrous oxide and sulfur dioxide, which are harmful to your health. Solar also helps to cut down on water pollution caused by the mining and transport of fossil fuels.
Storage systems come in a variety of different sizes and power capacities to meet your energy needs. The size of the storage capacity is important as it will determine how much you can store and discharge.
Solar energy has very low life-cycle emissions, which are the total amount of greenhouse gasses released to create a unit of electricity. To put this into perspective, one kWh of electricity generated by a rooftop solar system produces 41 grams of CO2 equivalents which is the same as the emissions produced by a medium-sized egg over a year. Energy storage systems allow you to further reduce your footprint and get closer to energy self-sufficiency. For instance, a solar-plus-storage system can be used to avoid demand charges on time of use tariffs or for backup power in areas with frequent blackouts.