Solar batteries have become an increasingly important part of the value of a solar installation. Previously, batteries were a “nice to have” addition, but with changes in legislation and the continuous march of rate hikes, batteries have had a chance to shine as one of the stars of any solar project. As a homeowner, you may not have the full picture of just how much value a solar battery can generate for your home, which is why we’re going to break down the top 3 ways that solar batteries can save you money - especially when it comes to summer rates.
What is the Net Billing Tariff?
The Net Billing Tariff, or NBT, is the latest version of the previous energy billing program, Net Energy Metering 2, or NEM 2. It stipulates that energy sold to the utility is priced by time of day, and energy from the utility is purchased by the homeowner at market rate.
How to Save Money with Solar Batteries?
For those wondering just how solar batteries can save them money on summer rates, we’ve put together a list of 3 excellent examples of how money (and more!) can be saved by the installation of a solar battery with your residential solar system:
- Store and Save on Summer Rates
- Export Excess Power for Profit
- Resist Costly Outages with Solar Batteries
Now that we have our list of ways solar batteries can save you money, let’s explore each one in greater detail - starting with storing and saving solar energy!
Store and Save on Summer Rates
By including solar batteries in your installation plans, you set yourself up to save big on your energy bills, purely through leveraging self consumption. During the day, your solar system will likely produce more energy than you can use, due to the prolonged and intense sun exposure of the summer days.
With a battery free solar system, any excess power generated by your system is immediately dumped back into the grid, with your compensation being determined by the price of power at that specific moment. Given that the utility has drastically reduced these rates in the NEM 3 / NBT update, this will only net you a small value increase, which is unfortunately negated in the evenings as you are forced to draw power from the grid at an increased cost.
You still save more on your energy bills this way than you would purely buying power, but we can do better. Store your excess power in a solar battery, and when the night comes, you can draw from that power reserve to cover your usage, drastically reducing your summer bills.
Export Excess Power for Profit
Now, as we mentioned previously, dumping excess power onto the grid at the moment isn’t a high value strategy - but that doesn’t mean that exporting isn’t a valuable strategy! In fact, strategically exporting power to the grid is one way to dramatically increase your system value, leading to reduced payback periods and hundreds or even thousands of dollars saved on summer energy rates.
The key is to export power when it’s in your best interest to do so. This process of energy arbitrage is a key component of the new value of solar batteries, as you can leverage the benefit of self consumption while the fixed rate of power is low, and strategically export your power back to the grid when that rate is suddenly sky high.
Now, you could try to memorize the hundreds of rate values to know just when to export, or you could rely on a trusted partner to help you program your battery to export power on a strategic schedule. This way, you enjoy the overall strong value of storing and using excess power year round, while also taking advantage of energy arbitrage to really maximize the value of your solar batteries.
Resist Costly Outages with Solar Batteries
The cost of power outages may not stand out to some at first, but for those who have lived through California fire season, the savings of solar battery storage in this time of year cannot be overstated. During the summer months, outages become more and more common as our aging grid is pushed to the breaking point. For California homeowners and residents, an outage could mean the loss of expensive groceries, or of work hours as your home office powers down.
Unfortunately, it could mean something even more serious if you rely on electricity for the operation of medical equipment or the powering of a well pump. For many people, the cost of an outage is more than just a little darkness or discomfort, especially as heat domes and rising temperatures create their own unique problems. In moments like these, the value provided by solar batteries is clear.
Save with Summer with Simply Solar
If you’ve read this article and found yourself wanting to know more about how to save on summer rates with solar batteries for your home, you’re in luck. Our expert solar consultants are available to speak with you about a summer solar installation of your very own. Schedule an appointment today, and we’ll help you save big on those painful summer rates with solar batteries!
