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Even if you don’t have a solar power system, you may still be able to increase your energy independence with battery storage.
Many homeowners aren’t aware that battery storage can be used independently of solar panels, by capturing power from the grid and storing it for power outages or peak demand times. Having this backup allows you to both save money and improve your energy efficiency without necessarily having to install solar panels. If you’re unable to install a solar solution or are looking at alternatives, here’s a closer look at what you need to know.
Most conversations around battery storage focus on pairing the technology with solar panel systems. Solar and storage solutions are a popular way to maximize the value of solar energy production. The panels use photovoltaic cells to convert sunlight to energy, which is then stored in batteries.
The batteries store the energy that’s produced throughout the day, and then use smart technologies to shift to battery power at night or during inclement weather. Yet it is possible to leverage battery storage technology on its own, harnessing energy collected from the grid and then using that to help homeowners achieve a greater degree of energy flexibility.
Photo courtesy of Panasonic Eco Systems
In some locations, energy pricing is time-dependent. At peak times, such as early mornings when people are waking up or in the evenings as they’re enjoying post-work time with their families, there’s a higher demand for energy. Utility companies capitalize on this by charging a premium.
Homeowners can take proactive steps to reduce energy costs by using batteries to store power from the grid. Smart software in the battery solution can be programmed to draw power at more cost-effective times and then switch to battery power for homes and appliances with battery-based power at peak intervals. Over time, this can help reduce energy costs and keep utility expenses as cost-effective as possible.
Another reason homeowners are turning to battery storage solutions is for power support when the grid goes down. Today’s battery solutions provide a cleaner alternative to fuel-powered generators and give you a greener option to stay online during bad weather.
Consider a scenario where a forecasted storm has the potential to take down the grid. Homeowners don’t have to go without power. It’s possible to preemptively source power from the grid and store it in your battery in advance of that event. If the grid goes down, the homeowner has access to the power needed to keep their most critical appliances online until emergency crews can bring the larger grid back online. Battery storage can help provide assurances for keeping you connected during an emergency.
Occasionally, homeowners will investigate solar power systems and find out that they are not an option. For example, if you live in a tightly managed neighborhood run by a homeowners’ association, it may be against the HOA code to have panels installed. Similarly, if you own a condo or townhouse, solar panels might not be a fit. Yet this doesn’t have to be a deterrent from taking steps toward increased energy independence. By enabling battery storage for their homes, homeowners can utilize stored energy to lower costs, stay online during outages, and meet other long-term energy goals.
If you are interested in the features that energy storage provides but aren't ready or able to purchase a full solar energy system, investing in a storage battery may be a way to find the benefits you're seeking. It’s another option for homeowners to consider for cost savings, emergency energy support, and long-term energy solutions.
Battery storage is quickly becoming a solution for homeowners looking to save money on energy costs and improve their sustainability. Learn more today about how EVERVOLT battery storage can help you reach your energy goals.
There’s a reason you are seeing more home energy storage systems paired with solar panels. Solar is an intermittent energy source — the sun doesn’t shine all the time. Batteries store excess solar energy for later use, making solar energy available around the clock. The two technologies make a great combination.
In the past, home storage batteries that qualified for a federal tax credit had to connect to a solar energy system. The Inflation Reduction Act (IRA) changed those qualifications. Now there’s a 30% federal tax credit available for standalone storage batteries installed after December 31, 2022. As a result, more households will likely install storage batteries without solar panels.
Here’s what to know about the potential advantages and feasibility of batteries without a solar system.
“You can absolutely install a battery without solar, but you get a lot of benefits from solar because you can recharge the battery,” says Nathan Garvey, application engineer for Panasonic North America.
A standalone battery system charges from the power grid, except during blackouts. By contrast, a battery bank with solar panels can charge from either the panels or the grid. “If you have solar panels, you can last multiple days when there's an extended grid outage,” Garvey explains. “If it’s a battery-only system, you’ve got just one shot, maybe 8 to 12 hours of backup, and then it's exhausted.”
It is possible to charge the battery using a backup generator during a power outage, adds Garvey. However, using solar power when available is preferable. In this case, the battery storage system would power the home, and the backup generator would only run as needed. This configuration is quieter and produces fewer emissions.
There are some situations where it isn’t possible to install a rooftop solar system with an energy storage system.
“If you’re budget conscious and want to add solar sometime in the future, you can install a battery and then add the solar later,” says Garvey. “If there's significant shading and there's no point in having solar, then you can have just the battery.”
Another situation might be if you as the homeowner don’t have the right to install a solar array. For example, some properties with historical designations have restrictions on altering the home's appearance.
Likewise, homeowners associations might have limitations on solar in their covenants, conditions, and restrictions, and condominium owners often lack the right to install equipment on the roof. In other cases, there might not be space for solar panels due to skylights or mechanical systems. Batteries can be a solution in all these cases.
Even though there are many advantages to having solar panels, standalone battery storage has benefits, too.
Sometimes, homeowners want the benefits of battery storage, such as backup power during blackouts and lower electricity bills, but don’t want to pay for a full solar system. A battery-only system costs thousands of dollars less than a solar energy system with batteries.
However, to reduce your power bills with a standalone battery system, you need to understand your utility’s price structure.
If your utility issues demand charges for residential customers, they base those charges on the highest level of electricity you consume at one time during the billing period. You can reduce this amount by using energy from your battery rather than from the grid.
Under time-of-use rates, the price-per-kilowatt hour is higher when electricity use on the grid is highest, usually in the late afternoon and evening, and lower when electricity use is lowest, usually lowest in the middle of the night.
According to Shane McNichol, product support engineer for Panasonic North America, “If you have high peak or time-of-use rates, some people are using standalone battery systems to lower their monthly utility bills. So if you can charge your battery early in the morning off-peak, you can offset some of your really high peak rates, saving money.”
Also, most homeowners enjoy having battery power during blackouts. This is especially useful in areas with relatively short power outages because the battery’s energy is generally sufficient until the outage ends.
The IRA includes a tax credits for installing a standalone, battery-only energy storage system with 3 kWh or more capacity. To calculate the value of the tax credit, multiply the total cost (including installation) by 30%.
Cost of the battery system x 30% = value of the tax credit
Thus, installing a home energy storage battery that costs $15,000 could qualify for a $4,500 tax credit.
$15,000 x 30% = $4,500 tax credit
Unfortunately, some properties are just too shaded for solar panels to be practical. If other structures or trees cast shadows on your roof, your photovoltaic system will generate very little electricity. You can still enjoy the benefits of a battery storage system that charges through the grid rather than solar panels. And you can still utilize the federal tax credit through the Inflation Reduction Act.
Can’t afford the cost of batteries and solar panels combined now?
Either start with just the batteries or just the solar system, and add on as your budget allows.
For example, if you need a new roof soon but want battery storage now, you could add solar panels once you’ve replaced your roof. Likewise, if your neighbor cuts down a big tree and you suddenly have enough solar exposure for solar panels, you can then retrofit your comprehensive energy storage system.
The recent expansion of the tax credits to include standalone residential battery storage will likely make home energy systems more common. Also, momentum is building for time-of-use rates, which enable home battery systems to reduce electricity bills.
“Some utility customers have different electric rates throughout the day,” says Garvey. “I think this is something that we're going to see a lot more in the future, with batteries used to smooth out or support the power grid.”
Whether you’re ready to install a full solar and battery storage system or just looking at standalone storage, an authorized Panasonic installer can help you find the right solution for your home.
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