Solar energy design can be complex. There are virtually unlimited options and choices to make when optimizing solar energy for your business. A solar energy expert’s job is to help you understand your options. First we assess your unique facility, property, power company, and energy consumption habits. Then we optimize a solar panel design for your needs. One of the most common questions we get is, “should I get batteries?” Before we can answer that, let’s talk a little about batteries.
How do you store solar energy?
Solar energy is almost always used immediately when it is generated. 99% of the time, this is no problem. However if you want to store energy (or need to store energy) and use it at another time, you need an energy storage system. Batteries, Energy Storage, or BESS (Battery Energy Storage Systems) are terms used to describe any equipment designed to store your solar energy for later. Typically, solar panels use chemical storage systems to store the solar energy. These are most commonly Lithium Ion batteries and were often lead acid car batteries previously. Battery technology is evolving and many experts believe the current state of the technology is only the beginning.
Why would you get batteries?
Businesses get batteries for two reasons: to save money on their power bills or to go off grid.
How do batteries save money?
Batteries can save you money if solar energy is more valuable to you or your power company at different times than it is generated. Solar panels generate most energy from 10AM-2PM during the summer (although they do produce energy anytime the sun is shining). These times are often called peak hours. In rare cases it may make more sense to store energy and shift it to evening hours when the sun sets. Your batteries can sometimes be used by the power company and occasionally you are compensated for that use. There are a few places that offer additional incentives for batteries, most notably, certain places in CT and CA . Unfortunately, without these additional incentives, battery systems are rarely cost effective for businesses by themselves.
Can I go off-grid?
Off-grid solar is when your energy system is disconnected from “the grid” making it stand alone. Yes but it is expensive. For all of its inefficiencies, the power company drastically reduces the cost of electricity by managing the complex grid for everyone connected. If you were to totally unplug from that grid, you would pay much more to create your own grid. A better scenario is a hybrid model called net-metering.
Net-metering is when you install solar on your building to lower your costs. If the system over produces, the power company takes that power for you and gives you credits to use in the future. Essentially the power company acts as your battery bank to make sure you always have electricity when you need it. This is the most cost effective way to “store” solar. You can use batteries as backup if the power grid goes down. We can help you understand if that is something that would benefit your business. For most companies going off-grid will increase your energy costs over staying grid-connected.
Are there downsides to energy storage?
Battery technology is still relatively new and in high demand for consumer electronics such as cell phones, laptops and also electric vehicles so they can be expensive. This will improve over time as their form (chemical composition) and function (use cases) grow. They do degrade as they are used meaning they lose capacity to store energy. This happens as they charge and discharge repeatedly over 10 years which is the expected useful life of batteries. This degradation is rapid relative to solar and many energy storage experts believe this will improve dramatically as new configurations and chemistries become mainstream.
Do I need batteries?
For most businesses across the country considering solar, the answer in 2022 is no. Most businesses do not need batteries to get the benefits of a solar energy system. As prices come down and utilities incentivize this technology that will likely change. It is worth noting that starting with solar panels and expanding into energy storage is a great way to see if and when batteries can add value to your solar energy project.
Contact us to find out more.