Why Solar Batteries Are a Smart Investment

 

Picture Credit: Designer

Solar energy has gained much popularity in the current world, and people are taking this approach to reduce energy bills and dependence on traditional power grids. Putting up solar panels is a huge leap toward saving, but most people will not think about an important component that will make the most of your savings, and this is solar batteries. Solar batteries help the homeowners to store extra energy their panels produce when the sun is on, such as at night or on cloudy days. This additional storage can result in even more significant savings over time, making solar batteries one of those intelligent investments for people looking to maximize their energy efficiency.

 

These solar batteries have become much cheaper over recent years. Such systems could reach over $15,000 at the start of the 2010s, but lately, they've been breaking records by going as low as $5,000 to $7,000, depending on the capacity. That may still be expensive, but one needs to look into the after-sales benefits in the long run. For example, the typical family on solar might produce more than they use during the day, but that surplus is lost to the electrical grid without a battery. Utility companies in many areas have net metering programs in which utilities pay homeowners back for electricity added to the grid. But in most cases, these rates come out to be less than what homeowners pay for electricity when their solar panels are not producing at night. A solar battery helps them store that extra energy for their use and reduces dependency on the grid to keep savings for the future.

 

Take the Tesla Powerwall, for example, of today's most well-known solar battery systems. This would give enough energy to the average household to keep it going for about 12 hours, assuming an average consumption and having a capacity of 13.5 kWh. The company described this as having a price tag of around $7,500 before installation costs. Assume that a typical household consumes about 30 kWh of electricity per day. If their panels were to produce 40 kWh on a sunny day, they would typically spill the excess 10 kWh back into the grid. At that time, the power wall comes into play and stores the excess energy for the night. This can save a homeowner in high-electricity-cost areas, such as California, $3 per day or about $1,100 a year. Over ten years, these savings could more than pay for the upfront cost of the Powerwall system, considering incentives and other rebates that reduce the upfront installation cost.

 

Besides the economic value, solar batteries also confirm energy security. In these times, extreme weather, wildfires, and old infrastructure make power outages increasingly common; if you have a solar battery, you will not sit in the dark because of grid failure. Suppose anything speaks to the sense of security described above. In that case, it is the fact that just last year alone, millions of Californians went without electricity for hours and sometimes days due to power shutoffs intended to prevent wildfires. Solar batteries could keep their homes powered up and their most essential appliances running, including refrigerators and medical equipment. There's a lot to be said for peace of mind, which is necessary in a situation like this and impossible to value precisely.

 

Another major factor is time-of-use pricing, something utility companies are increasingly adopting. Under TOU rates, electricity is more expensive during peak demand, usually in the late afternoon and early evening when people return home from work. Of course, that also means the sun has set or is setting, and the solar panels produce little to no energy. With a solar battery, though, homeowners can avoid paying higher rates using energy stored during the day. This could mean a difference of $0.20 per kWh between off-peak and peak rates; hence, a household that uses 20 kWh during peak hours could save about $4 per day by relying on their battery instead of the grid. This could result in savings of about $1,460 over a year, further underpinning the value of solar batteries.

 

Moreover, the environmental benefits of solar batteries cannot be ignored. The battery stores the excess energy from solar energy to reduce dependence on fossil fuels, thus helping families considerably reduce their carbon footprint. In 2023, the average U.S. household generated approximately 7.5 tons of CO2 annually, with a substantial proportion emanating from electricity consumption. This will cut a few tons of their household emissions each year in efforts towards global climate change measures. One notable case study involves a family in Austin, Texas, who installed a solar battery system in addition to their 6 kW solar panel array. Over the first year, they saved around $1,200 on their energy bills by storing excess energy and pulling it during high-demand periods. They also kept their home running for two days during a power outage caused by a winter storm in 2021, when many homes on their street remained without power. The family projects the solar battery system will pay for itself in about eight years. For them, the added security of knowing there is power during emergencies has been invaluable.

 

While just solar panels significantly reduce your energy costs, solar batteries take those savings to the next level. They further give homeowners the capacity to store and use energy when it is most valuable protection against increasing electricity costs and a backup power source. This combination of financial savings, energy security, and environmental responsibility has made solar batteries, for many, an investment well worth the cost. The upfront cost may seem steep; however, this cost is far overshadowed by long-term savings, among other benefits. Whether you want to cut energy bills, reduce your carbon footprint, or ensure your home has power when the grid goes down, solar batteries can be an integral tool in your quest for energy independence.