Solar and Battery-Backup: Capturing Energy for When It’s Needed Most
California has a long, proud history of being a leader in solar energy, with thousands of residents harnessing the power of the sun to reduce electricity bills and promote sustainability. While solar panels have been a smart investment for years to hedge against California’s rising utility bills, many homeowners are now realizing the additional benefits of pairing their solar systems with battery backup solutions.
According to PV Magazine, more than half of all California solar installations now come paired with a battery, compared with 20% just two years ago.
Battery backup keeps the power running – even if the grid is down
Much of the transition to battery backup is a result of California’s Net Energy Metering (NEM) 3.0. Where earlier NEM policies incentivized solar customers to sell energy back to the grid, NEM 3.0 was designed to address the mismatch between times of peak solar generation (mid-day to afternoon) and times of peak electricity demand (late afternoon to evenings).
By encouraging solar customers to install Battery Energy Storage Systems (BESS), NEM 3.0 emphasized battery storage with programs like the Self-Generation Incentive Program (SGIP) which rewards improved distributed energy storage that provides resilience during periods of grid overload, scheduled outages, or nature-propelled emergencies.
Battery storage offers multiple valuable benefits
There are many reasons why California residents with solar should consider installing battery storage, including:
- Protection Against Power Outages: As Californians know all too well, we experience frequent power outages due to wildfires, extreme weather, and Public Safety Power Shutoffs (PSPS). When the grid goes down, standard solar systems without battery backup are shut off. But with a battery backup system, you can store excess solar energy and keep your essential appliances running during outages. As Southern California Edison explains, “Battery storage allows homeowners to keep their lights on and their families safe during unexpected outages.”
- Maximizing Energy Independence: Solar panels generate the most power during the day, often when energy consumption is lowest. A battery allows you to store surplus energy and use it in the evening when demand and electricity rates are higher.
- Savings on Electricity Bills: California’s time-of-use rates (TOU) mean that electricity is more expensive during peak hours, usually in the evening. Batteries enable you to store solar energy produced during the day and use it during these peak periods, lowering your electricity costs.
- Support for a Sustainable Future: Battery storage reduces reliance on fossil-fuel-powered electricity during peak demand times when utilities often resort to less environmentally friendly sources. By storing and using your own clean solar energy, you contribute to a greener, more resilient power grid.
- Increased Home Value: Homes equipped with solar and battery systems are increasingly attractive to potential buyers. A reliable backup power solution is seen as a premium feature, especially in areas prone to outages. A study by Zillow found that homes with solar energy systems sold for 4.1% more on average compared to homes without solar. Battery backup systems further enhance this value. (Source)
Battery backup offers stability against an uncertain policy environment
Recent changes to California’s Net Energy Metering (NEM) policies have reduced compensation for excess solar power sent back to the grid. And with a new administration in Washington D.C., more changes may be on the horizon, at least in the short term. Battery storage systems help homeowners retain more of their solar energy, improving return on investment and increasing self-sustained consumption.
At All Bay Solar, we take pride in helping every customer get the most out of their solar and energy storage systems. Our team of fully certified installation specialists can assist with any project, from single-home residential to large commercial properties. And because we serve the greater Bay Area (as far north as Sonoma, as far South as San Jose, and as far East as Antioch, Brentwood, and Discovery Bay), we understand the permitting variances from county to county.
If you want to learn more about how solar and battery-backup are the perfect pairing getting the most out of your system, feel free to contact one of the experts at All Bay Solar.