August 1, 2025

Battery Storage Gets Even Better With NEM Systems

Battery storage has long been the perfect pairing for a solar system. Storing excess generated power to be used for nighttime needs or exported back to the grid just perfectly compliments the operation of your system at peak efficiency, and it enables you to save so much more money with minimal oversight. Indeed, solar and battery storage are like chocolate and peanut butter - two great tastes that taste great together.

But battery storage has not always been seen as such a complimentary pairing with a solar system, and there are specific reasons for that which have changed over time. The reasons for this are worth exploring, as they give a hint into where the solar industry is headed. If the past few years is any indication, battery storage is only going to become more valuable over time!

NEM 2 and Battery Storage

The biggest thing that changed for battery storage in the last few years is the changeover between NEM 2 and NEM 3. This legislative shift was pivotal for the rise of battery storage, and catapulted solar batteries from a nice-to-have addition to a must-have inclusion in any installation. Under the previous net energy metering agreement, the value of solar exports was high, which certainly made batteries appealing. If you could afford a battery storage solution, you could enjoy the benefits of exporting power to the grid at a premium, but with energy rates as low as they were back then, not everyone would benefit from adding a battery to their system.

When we look at the payback period for a new system, adding a battery really only made sense for people who could afford to oversize their system, and a standard solar system was more than enough to offset energy bills for most customers. Because of the situation with energy rates, most people could happily install solar without battery storage. Battery installations were reserved for those who were interested in energy exports, or indeed the resilience against outages that some in California desperately need.

Battery Storage & The New NEM

With the arrival of NEM 3, the value of exporting power to the grid was curtailed, but this change arrived just as rates were beginning to spike (and they really haven’t stopped spiking since). Due to the increase in energy costs across the state, the value of battery systems actually increased dramatically. Now, instead of just being a nice-to-have addition for the value enthusiast, battery storage was an integral part of the value prop of solar. As solar companies began to evaluate their offerings in the wake of the NEM changeover, it quickly became clear that battery storage offered a meaningful decrease in the payback period of new systems.

The value of storing power and using it to cover high rate periods like evenings and overnight usage meant that battery enabled solar systems were quicker to achieve pure value than systems without storage. This has only become more true as month after month, energy rates have increased. 2025 has seen a temporary plateau for energy rates, which many hope will lead to a falling off in the near future, but even if the utility were to offer a substantial rate reduction, it would never match the energy prices we were seeing before the NEM changeover. Battery storage is here to stay, so for California ratepayers, it’s worth it to review what kinds of options there are out there for those interested in a solar + storage system of their own.

Storage Solutions

We’ve seen many different kinds of battery storage crop up over the past few years, and each kind of battery seeks to fulfill a different need. Some are meant for bill offset, some are designed to be utilized for strategic energy exports, and some are large enough to provide whole home coverage in the event of an outage or blackout. Many on the market can cover multiple roles, providing export options with whole home capabilities and bill offset. It depends on your location, your home, and your needs, and the best way to tell what kind of battery would work best for you is to consult with an energy expert.

EcoFlow Battery Storage

One battery that we’re excited to discuss is the Ocean Pro solar battery system from EcoFlow. One of the major innovations in the last few years has been the development of systems which can help you strategically export power to the grid, and the Ocean Pro has onboard predictive forecasting for your usage patterns and weather conditions to help you identify the right time to bank power vs. the perfect moment to export it. This is a great feature for those who like the idea of strategic battery usage but don’t necessarily have the time to manually track these factors.

The Ocean Pro is also highly modular, meaning you can connect multiple battery units together to create a power profile that meets your specific needs and budget. Where one individual unit might be perfect for a small home, you can easily expand the available storage capacity for a larger home or for someone seeking whole home backup capabilities. This flexibility makes the EcoFlow Ocean Pro a compelling battery storage solution for anyone interested in a new installation or an expansion to their existing system, as the potential applications are quite robust. If you’re interested in a solar + storage installation, be sure to schedule a free consultation, and ask your solar expert about EcoFlow!

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