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We are moving towards a world where we provide our own energy. Electricity bills are rising, and grid stability is trembling due to increasing extreme weather and high-cost maintenance of the traditional infrastructure. Environmental change could also be a side effect of the energy problem.
Home energy storage technology is a solution for this situation. In this article, we will give a thorough introduction to how home energy storage can significantly lower your electric bills.
Understanding Home Energy Storage Systems
A home energy storage system uses batteries to store energy and provides it later when needed. The system normally contains a management device to control energy supply and batteries to store energy from different energy sources, such as solar, grid, and generator.
The most common way to charge a home energy storage system is from solar systems, harnessing the maximum solar energy which is free and limitless. The grid or generator could also charge it. To learn more details about home energy storage systems, read Protecting the Whole House with Home Battery Backup Systems.
Financial Benefits of Home Energy Storage
Time of Use Optimization
Many utility companies are now using Time of Use (TOU) billing for electricity. The basic logic is to set different electricity rates at different times of the day. In high-demand hours, usually in the morning and evening, the rate is the highest. In the afternoon or after midnight, when fewer people are using electricity, the rate is lower.
A home energy storage system supporting TOU can be charged from the grid during off-peak hours and discharged from the batteries during peak hours.
Peak Shaving
During peak hours, using a battery to supply power to household loads can save a lot. The battery could be charged during off-peak hours by solar or the grid.
The savings may be as high as thousands of dollars over the long run, depending on your battery storage capacity and energy consumption. The more you shave, the more you will save.
Reduced Grid Dependence
Grid failures are growing due to the pressure of increased energy demand and extreme weather upon poorly maintained infrastructure.
With home energy storage, the dependence on the grid can be substantially reduced by using solar power generated during the daytime to be used in the evening. As a result, the energy bills will be reduced.
Emergency Backup Savings
In areas where power outages are common, there are invisible losses that could be saved if there was backup power in the home.
One of the biggest losses is refrigerated items such as food or medicine which could be a loss of hundreds of dollars. Home energy storage with a seamless power supply could avoid such losses.
Increased Solar Utilization
By harnessing and storing more solar energy, your solar system utilization will be increased thus your solar ROI is improved as well. Many solar systems produce more power than a home uses during the day. If the energy cannot be sold to the utility company, it is lost. By storing solar energy in batteries, to be used when the sun isn’t shining, a home system increases the value of your solar system.
Since solar is limitless and free, improved solar usage will definitely lower your energy bills.
Environmental Impact
Using home energy storage leaves a positive impact on the environment as less grid power is consumed and more solar is harnessed.
Most grid power is generated through traditional energy sources such as fossil fuels, oil, and gas. The adoption of home energy storage will increase solar usage as a clean energy source and reduce our carbon footprint to improve the environment.
Emergency Preparedness and Reliability
Not only can home energy storage save energy bills but it is also a good home backup power supply.
Usually, the battery is charged fully during off-peak hours through the grid or during the daytime when the sun is sufficient. If a power outage occurs, the battery can be the power source to power the home. In areas where power outages are common, home energy storage can be a critical way to deal with them.
The grid is not stable, and natural disasters are becoming more frequent, causing more power outages. By installing home energy storage, homeowners can obtain a certain level of energy independence to protect the family from power outages. If the energy storage capacity is large enough, it is possible to achieve energy freedom with fully charged batteries as a stable power backup.
Another benefit of having home energy management with battery backup during a prolonged power outage is that it can restart your solar system to generate power if there is enough sunshine, providing added energy security.
Selecting the Right Home Energy Storage System
To choose the right home energy storage system for your home, there are several main factors you need to consider before making the decision.
a. Home/solar size
If you have a solar system, the size of a home energy storage system should be based on your solar size. If you do not have a solar system, the battery size should be based on your home energy needs. Usually the bigger the house, the more batteries are needed.
b. Energy usage
Your energy usage is an important factor to consider when choosing a home energy storage system. Even in a small home, the energy usage could still be huge if there are many large appliances. you may still need multiple batteries to meet the demands.
c. Budget considerations
Your budget is also an important factor to consider. As a new technology, this type of product can still be expensive with a big upfront investment. Nevertheless, with the government's inventive and energy bill saving in the long term, the ROI of home energy storage could be positive.
There are government and utility incentives that also have a budget impact. Some are discussed below. For more detail, read US Government Policies and Incentives for Home Energy Storage.
FAQs
1. What is a home energy storage system and how does it work?
A home energy storage system is for storing excess energy and using it when needed. It usually contains a battery, which is for energy storage, and a controller, which is to manage energy sources such as solar and battery.
The energy storage system can be charged by solar, grid, generator, and other energy sources. Solar is the most common energy source for storage to get the best ROI. If solar is unavailable, the grid and generator can be alternative energy sources to charge the battery.
Read this article to learn more: Protecting the Whole House with Home Battery Backup Systems
2. How can home energy storage systems reduce my electricity bill?
If you have a solar system and a home energy storage system that is big enough to cover your home's energy usage, you can maximize your solar ROI by charging the battery with solar and using the energy stored to power the home when solar is no longer available. In this case, your electricity bill could be decreased dramatically. Read How I Slashed My Electricity Bill by 93% with a FranklinWH System to know how this works.
With the increasing energy demand, more utility companies are adopting the time-of-use method to calculate energy bills which is to charge more during peak hours and charge less during off-peak hours. In this case, using energy storage at peak hours to power the home will save a substantial amount of bills.
3. Are home energy storage systems environmentally friendly?
The popularization of home energy storage will decrease the dependence on the grid, which is fueled by traditional sources such as fossil fuels that cause pollution. As most home batteries are charged by solar energy, which is clean and pollution-free, it will greatly improve the environment.
4. What should I consider when choosing a home energy storage system?
The size of the solar system, house energy usage, and budget could be the main factors to consider.
5. Can energy storage systems work with existing solar panel installations?
Yes. Most energy storage systems should work well with an existing solar panel system. However, there are energy storage systems that only adapt to one or several exclusive solar systems. Please confirm before you make the purchase.
6. What are the maintenance requirements for a home energy storage system?
A home energy storage system takes very little annual maintenance.
7. Are there any government incentives or rebates for installing an energy storage system?
Yes, the federal government has tax incentives while more states are adding rebates for home energy storage systems. There are credits from the federal government, the BESS program in Hawaii, the SGIP program in California, and the ConnectedSolutions program in Connecticut.
Read US Government Policies and Incentives for Home Energy Storage to learn more details.
Final Thoughts
Home energy storage systems can greatly improve solar ROI and energy efficiency, as well as lower energy bills. The earlier you adopt the system, the better your home energy usage will be optimized, and so will your wallet!
It will benefit the environment as more clean energy is used.
With different financial incentives, now is probably the best time to get one.
Energy Independence with FranklinWH
FranklinWH energy management and storage system integrates solar, grid, batteries, and generator to manage multiple energy sources and manage them intelligently.
With 13.6 kWh storage per aPower battery, which can be stacked up to 15 per aGate intelligent controller for up to 204 kWh, the FranklinWH system is robust for whole-home energy management and backup. It supports TOU power management.
Whether you want whole house backup during outages or wish to lower daily energy bills, the FranklinWH solution could be the best solution to control and monitor your home energy sources through the FranklinWH App.
Read Everything You Need to Know About Franklin Home Power to learn more about the FranklinWH system.
Still have questions? Connect with our home energy experts here!
