How to Connect Solar Panels to Battery Storage
Solar photovoltaic (PV) panels and on-site battery storage have enjoyed explosive growth over the years as more homeowners and businesses grow to appreciate the benefits of maximizing your system when you connect solar panels to battery storage
This article explores these benefits. It also outlines:
- How to connect solar panels to battery storage
- Why you should hire a professional (versus doing it yourself)
- What a typical installation costs (with incentives if necessary)
- How to troubleshoot issues once your system goes online
But first, some background.
Understanding the Limitations of Solar Power
Whether as a homeowner or business owner, going solar is one of the simplest ways to reduce your monthly utility bills. Rather than pay for grid electricity, you’re able to make and consume your power on-site. Your solar installation also offers environmental benefits since PV panels rely on pure sunshine instead of energy generated from dirty fossil fuels.
However, these benefits only emerge under particular conditions.
For starters, it’s imperative that you monitor. clean. and maintain your PV system regularly. And if necessary, you may even need to occasionally upgrade your existing solar system.
In addition, guaranteed utility bill savings are only possible during the day – when the sun is shining. At night, you must switch over to grid electricity. Utility rates have historically been cheapest at night. But the growing popularity of solar power has pushed peak hours much later into the day. And this shift makes it harder to generate substantial savings if you have heavy energy needs after dark.
Similar issues exist on overcast days. Your solar panels will still generate energy (which is why you may sometimes develop a suntan on cloudy days). But the electricity generated may not be enough to power all of your appliances. And your PV system will automatically switch to grid power during these times.
State-level incentives like net energy metering can help boost some of these savings. Under these programs, you’re allowed to sell excess solar electricity back to the utility company in exchange for credits. The entire energy grid acts as “virtual” storage for your daytime solar power with this approach. However, most utility providers base their credits on wholesale instead of retail pay rates. As such, the potential savings under net energy metering are limited.
To reclaim some of these “lost” savings, more solar customers have started turning to on-site battery storage solutions.
Why Use Batteries to Store Solar Power?
Although there are many different ways to pair batteries and solar together, most configurations allow you to do some variation of the following:
- When the sun is shining during the day, your panels feed excess solar power into the batteries.
- At night (or on overcast days), the stored solar energy in your batteries can be used to power your home or business.
Note that you only need to purchase electricity from the utility company when your batteries are empty, AND your panels aren’t receiving enough sunshine – either because it is nighttime or too cloudy.
The beauty of this approach is that you can time when you take electricity from the grid. And this allows you to avoid peak rates, demand charges, and time-of-use (ToU) pricing to generate even more significant savings than you could from relying exclusively on solar PV panels.
Better still, it’s technically possible to decouple from the grid entirely if your home or business has enough solar and storage capacity. This approach offers true energy independence, with absolutely no more utility bills, rate increases, or tariffs.
However, increased utility bill savings are only the most recent benefit from the solar battery revolution. This combination has long been used by:
- Remote properties that are too far from the utility grid. Combining solar and storage is a more attractive alternative to continued reliance on dirty, noisy, and expensive diesel generators.
- Critical services that need 24/7 power. Medical facilities, military installations, and data centers fall into this broad category.
There’s also a final group – i.e., those who live in areas with frequent blackouts. Pairing battery storage and solar PV panels provide emergency backup power when the electricity grid goes down. However, this requires using the correct type of inverter since many older inverter technologies are designed to automatically shut down your PV system if there is a grid outage. This “anti-islanding” safety feature is designed to prevent solar electricity from going into the grid as utility workers repair downed power lines in the field.
If your solar inverter comes with this anti-islanding safety feature, you’ll need to either switch inverters or install batteries if you want reliable daytime power. This strategy is becoming increasingly common in California and Texas – both of which have been plagued by significant grid outages. However, blackouts will likely become more widespread as extreme weather conditions disrupt normal grid operations.
How to Connect Solar Panels to Battery Storage
Pairing the on-site batteries with solar PV panels ultimately comes down to connecting the correct wires and components. Many installations require a charge controller to help bridge the gap between the PV panels and batteries. This charge controller is a voltage and current regulator designed to prevent your solar batteries from overcharging.
However, the actual installation process is rarely this straightforward. That’s because every solar battery manufacturer uses slightly different protocols and specifications – similar to how you can’t use an Android charger with an iPhone. In addition, some manufacturers specify that only licensed service dealers can install their components. Hiring someone outside of the Tesla Powerwall network, for example, could potentially void your warranty.
It also matters if there is an existing PV system – and whether it was initially designed to accommodate solar batteries at some later date. Storage-ready solar inverters are becoming increasingly standard with newer installs. However, this compatibility isn’t always a given when working with older PV systems. And you may need to explore one of the following options to prepare your solar installation for battery storage.
- You are adding a second AC-coupled inverter to your existing system. This approach is less popular since there are multiple steps as direct current (DC) electricity gets converted to and from alternating current (AC) power. Because there are transmission losses at each stage, using a second inverter is less efficient in the long run.
- It is adding a solar inverter that is truly storage ready. This approach delivers higher efficiency rates since there are fewer overall DC/AC conversion steps. However, the setup process is more complex, driving up the total installation cost.
Which to Choose: DIY vs. Professional Solar Storage Installations?
Because most solar battery storage solutions are installed at ground level, you don’t need the ladders, harnesses, and other safety gear required when installing traditional rooftop PV panels. However, you’re still working with high-voltage electricity. And this means using specialized safety gear to prevent accidents, injury, or property damage. Installing batteries requires making exact calculations for matching voltages and currents across all the different components in the larger solar PV installation.
Unless you’re experienced in electrical wiring and circuitry, hiring a professional battery installer is always best. In addition to being a prerequisite for some battery warranties, outsourcing the job to an experienced electrician also delivers better sizing, quality, utility bill savings, and carbon offsets.
How Much Does It Cost to Install Batteries with Solar Power?
Combining solar and storage has never been more affordable than it is today:
- According to the National Renewable Energy Laboratory (NREL), residential, commercial, and utility-scale PV installation fell 64%, 69%, and 82%, respectively – from 2010 to 2020. Even more significant price drops are expected if the US Department of Energy’s Sunshot initiative achieves its 2030 goal of cutting PV costs in half.
- Solar batteries used to be notoriously expensive. But over the past 30 years, have fallen 97% – while efficiency rates and storage capacities have skyrocketed.
Better still, local, state, and federal incentives exist to make solar and storage even more affordable. A prime example is the 26% Federal investment tax credit covering PV systems and solar-tied storage solutions.
That being said, determining how much to budget for your solar and storage installation is difficult since:
Every PV System Is Unique
New installations are often cheaper than retrofits since you can do all the electrical wiring at once. It also matters how many PV panels you have (or plan on adding in the future). over, if your current PV system isn’t already “storage-ready,” you’ll need to upgrade it – which costs more.
Every Battery Is Different
Every manufacturer uses slightly different chemicals and processes when designing their battery solutions. For example, lead-acid is cheaper than lithium-ion – at least initially. However, lithium-ion offers higher efficiencies, larger capacities, and longer lifespans – making them the more affordable option over time.
It also matters how much storage capacity you’re installing – i.e., enough to save money or enough to completely go off-grid.
Despite these variables, it’s possible to give broad price ranges. According to SolarReviews, for example, the average cost of a residential lithium-ion solar battery solution is 7,000 to 14,000 Energy Sage offers similar estimates ( 10,000 to 20,000 ).
Should I Connect Solar Panels to Battery Storage?
Not necessarily. Because of the upfront cost, combining solar and storage may not be the best option. Most customers enroll in their state’s net energy metering program and rely on grid power at night and cloudy days. The setup process is more straightforward, and you don’t need to spend an additional 7,000 to get started.
However, adding batteries to your solar PV system may be worth it if you:
- Need emergency backup power during grid outages
- Want to boost your long-term utility bill savings and ROI
- Can’t connect to the utility grid (due to geography)
- Want to unplug and become more energy independent
One important thing to keep in mind, however.
Even though PV panels come with 25 years of warranty protection, they still need servicing, repairs, and upgrades. Batteries come with even shorter warranties, typically lasting 5 to 15 years – depending on the manufacturer. These lifespans can be much shorter if the batteries are poorly installed.
This means that over the next 25 years, you will likely need to repair or replace several of the components in your system – including the batteries, panels, and even the inverters. Unfortunately, this can prove challenging in situations where:
- The original installer is no longer around to fix the issue.
- The manufacturer has gone out of business and can’t honor its warranty.
Even if you find service technicians, there’s no guarantee that they’ll be familiar with the technology powering your system. This is especially true if yours is an older installation that uses legacy or outdated components.
We offer a simple solution to this increasingly common problem. We use AI-powered matching technology that can instantly connect you with the right solar or battery technician for any job:
- Our algorithm analyzes your installation’s specs, tech, age, size, and location to develop a unique DNA profile for your system.
- It then uses that profile to search an extensive database of experts in your area who know precisely how to service your installation.
Whether you need to update a router, clean dust-covered modules, or repair a faulty battery, our platform allows you to extract more value from your clean power investment.
Schedule a free demo with us today to learn more about our platform’s AI-powered solar-matching technology.
A Collaboration Between Holy Cross Energy, Colorado Mountain College, Ameresco, Sunsense and Friends
We’re proud to announce the completion of our new solar array and battery storage project at Colorado Mountain College’s Spring Valley campus in Glenwood Springs!
This utility-scale solar storage project will assist in our efforts to provide our members with 100% carbon-free electricity by 2030. CMC has a similar goal of carbon neutrality by 2050.
The avoided annual greenhouse gas emissions of the solar PV are expected to be 6,853 metric tons of carbon dioxide equivalent, which equates to the emissions benefit of removing 1,481 passenger vehicles from the road, or not burning 7,551,050 pounds of coal.
Projected Carbon Offset Numbers
Providing 5 MW/15 MWh of battery energy storage.
Meet Our Partners on This Project
Project Site / HCE Member Colorado Mountain College Spring Valley Campus
Local Solar Installer Sunsense Solar
The system will provide power for three CMC campuses, including Vail Valley, Aspen and Spring Valley, and is anticipated to come online in fall 2022.
Many of the 13,500 solar panels are on a single-axis tracker racker to take advantage of the varying terrain and space constraints of the site. The battery system is comprised of 68 battery stacks housed in 4 on-site containers, which also contain an HVAC system for temperature and humidity control and a fire suppression system for safety.
We will use the batteries to discharge during system peak, reducing our wholesale energy costs and saving money for our entire membership.
The HCE/CMC solar plus storage project is a great example of a win-win renewable project. Not only does the project assist both HCE and CMC toward their renewable and carbon goals, the battery also provides us with the flexibility to operate an increasingly renewable portfolio. To top it all off, we’re able to do this in a financially responsible way that saves money for all our members.
Sam Whelan Vice President of Power Supply, Holy Cross Energy
Everything You Need To Know About Solar Batteries
Samantha covers all topics home-related including home improvement and repair. She previously edited home repair and design content at The Spruce and HomeAdvisor. She also has hosted videos on DIY home tips and solutions and launched multiple home improvement review boards staffed with licensed pros.
We earn a commission from partner links on Forbes Home. Commissions do not affect our editors’ opinions or evaluations.
Table of Contents
Whether you’re new to the world of solar power and searching for the best system for your building or have had your home bedecked with solar panels for years, a solar battery can make a tremendous difference in the efficiency and versatility of your solar setup. Solar batteries store the excess energy generated by your solar panels, which can then be used to power your home during gloomy, rainy days, or after the sun sets.
Our guide to solar batteries can help answer your questions about solar batteries and assist in selecting the best option to meet the needs of your facility or household. But note not all solar installation or sales companies offer solar panels.
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What Are Solar Batteries, and How Do They Work?
Without somewhere to send energy produced by your solar panels, solar would be fairly inefficient—your appliances would only work when the sun is shining and your panels are working. If you don’t use the energy, it’d be wasted—and you wouldn’t be able to use it at night. Enter solar batteries, which store energy generated by your panels for use when you actually need it. Solar batteries are an alternative (or addition to) feeding energy back to the grid and can help you make your house or facility somewhat immune from power outages and even help take it off-grid entirely.
Solar Battery Types
The four main types of batteries used in the world of solar power are lead-acid, lithium ion, nickel cadmium and flow batteries.
Lead-Acid
Lead-acid batteries have been in use for decades and are one of the most common types of battery used in automotive and industrial applications. They have a low energy density (meaning they cannot hold much energy per kg of weight), but remain both cost-effective and reliable and thus have become a common choice for use in a home solar setup.
Lead-acid batteries come in both flooded and sealed varieties and can be classified as either shallow cycle or deep cycle depending on the intended function and safe depth of discharge (DOD). Recent technological advancements have improved the lifespan of these batteries and lead-acid continues to be a viable option for many homeowners.
Lithium-Ion
The technology behind lithium-ion batteries is much newer than that of other battery types. Lithium-ion batteries have a high energy density and offer a smaller, lighter and more efficient option. They allow the user to access more of the energy stored within the battery before needing to be recharged, making them great for use in laptops and phones—and in your home.
The major drawback of lithium-ion batteries is the significantly higher cost to the consumer. If improperly installed lithium-ion batteries also have the potential to catch fire due to an effect called thermal runaway.
Nickel-Cadmium
Nickel-cadmium batteries are rarely used in residential settings and are most popular in airline and industrial applications due to their high durability and unique ability to function at extreme temperatures. Nickel-cadmium batteries also require relatively low amounts of maintenance when compared to other battery types.
Unfortunately, cadmium is a highly toxic element that, if not disposed of properly, can have a significant negative impact on our environment.
Flow
Flow batteries depend on chemical reactions. Energy is reproduced by liquid-containing electrolytes flowing between two chambers within the battery. Though flow batteries offer high efficiency, with a depth of discharge of 100%, they have a low energy density, meaning the tanks containing the electrolyte liquid must be quite large in order to store a significant amount of energy. This size makes them a costly and impractical option for most household use. Flow batteries are much better suited to larger spaces and applications.
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Solar Battery Costs
The cost of a solar battery or battery system will depend on the type and size of the battery chosen. Generally, lead-acid batteries will incur a lower up-front cost to the consumer than lithium-ion batteries, but depending on how the batteries are used, investing in a lithium-ion battery could save money long-term.
A single lead-acid battery can cost between 200 and 800 or even more depending on the size/power of the battery. Multiple lead-acid batteries may be needed to keep a household powered completely. The average cost of a residential lithium-ion solar battery system with installation falls in the 7,000 to 14,000 range.
The of nickel-cadmium and flow batteries vary widely and depend on the size and scale of the installation. These batteries are not commonly used in residential dwellings and are better suited to commercial/industrial settings due to cost, durability, size, stability in extreme temperatures and requirements for disposal upon replacement.
Things to Look for When You’re Picking a Solar Battery
Several factors contribute to the performance of your solar battery. Before choosing your battery system, consider the following:
Type or Material
Among the types of batteries to choose from, each type offers a different major advantage. Weighing these pros and cons can help you decide which style is right for you. If you’re looking for something compact and longer-lasting, lithium-ion may be right for you. Lead-acid might be better for those conscious of more immediate budget constraints.
Battery Life
The “lifespan” of any battery is multifaceted; the age, type, quality and depth of discharge of the battery all contribute to its longevity. Referring to the manufacturer’s specifications for a battery can help you determine how long it’s likely to last.
In general, lead-acid batteries can last anywhere from one to 10 years depending on how they’re used. Lithium-ion batteries typically last seven to 15 years.
Depth of Discharge
Depth of discharge refers to how much of a battery’s stored energy is used before the battery is recharged. Typically, the deeper the battery is discharged, the shorter its lifespan will be. Batteries often come with both a cycle life estimate (indicating how many cycles it will last given a particular depth of discharge) and a recommended maximum depth of discharge.
Both lead-acid batteries and lithium-ion batteries will decay more quickly when deeply discharged, but lead-acid batteries tend to offer a lower tolerance for deep discharges than lithium-ion batteries, significantly reducing life expectancy if deeply discharged on a regular basis.
Efficiency
Solar systems and batteries are not 100% efficient when transferring and storing the collected solar energy from panels to batteries, as some amount of energy is lost in the process. Depending on the amount of energy you’re able to generate from your panels and how your system is configured, it may be worth investing in a more expensive, more efficient battery. This can help save money long-term. Your solar panel efficiency and battery capacities will be calculated and your system explained to you by any competent sales and installation team, but our solar resources can help you understand exactly how your system works, too.
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How to Select the Best Solar Battery for Your Needs
When selecting a solar battery for your setup, you may want to consider how you’ll use the batteries and what your need actually is, how safe each system might be and the overall cost of the system.
Use and Need Considerations
Do you need the battery or battery bank to provide only short bursts of emergency power when the power goes out, or do you need it to maintain the combined electrical needs of your entire household/facility for extended periods of time? How much sun exposure do you expect to have on a daily basis? Consider the recommended depth of discharge for your batteries and how this will affect their lifespans.
Safety Considerations
How does the battery need to be stored to maintain it safely? What kind of maintenance does the battery require? What is the safe temperature range for your battery and is the storage location going to maintain that temperature? When the time comes, how do you plan to dispose of/recycle the battery?
Cost
Does it make more sense for you to spend less up front for lead-acid batteries, or invest in the efficiency and longevity of lithium-ion batteries? How many batteries will you need to purchase to provide for your needs? What’s the expected lifespan of the battery and will you be prepared to replace it when it dies?
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Benefits of Using A Solar Battery
The best thing about solar battery storage is that it lets you store the excess energy you produce. One of the most important benefits of solar batteries is that they don’t just provide backup power; they also produce energy after hours when you don’t want to send excess solar electricity back to your local utility company.
Energy Independence
A solar battery is an essential component of a home reliant entirely on solar power. The battery can store power during the day, so it’s available at night to keep the lights on for an entire evening. A solar battery system can also turn your off-grid solar system into an emergency backup during power outages.
Electric Bill Savings
Solar power batteries can help consumers power their homes by harnessing the sun. This will allow them to purchase less from the grid and save money on their electric bill.
Reduce Carbon Footprint
Solar energy can minimize our use of fossil fuels and protect our environment. Solar batteries generate solar energy when exposed to sunlight, which can then be used to power devices or recharge a laptop or phone battery.
Are Solar Batteries Worth It?
Solar batteries represent a significant upfront financial investment, but can ultimately help save you money on energy costs after sundown or during an emergency. If you’re living off-grid, they may be critical components of your energy system.
Solar batteries provide your home with clean, fairly green, renewable energy that would otherwise need to come from an outside source. Some areas also provide incentives or rebates to help mitigate the costs of adding a solar battery to your system and it’s possible to receive up to 30% off of your battery installation if you qualify for the federal solar tax credit.
Ultimately, only you can decide if the investment in a solar battery and its rewards is worth the cost and upkeep requirements.
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Frequently Asked Questions (FAQs)
How long do solar batteries last?
Solar batteries last for about 5 to 15 years. The life of the solar battery depends on its type, how well it’s maintained and how frequently it gets used.
What are the disadvantages of using solar batteries?
Cost: Solar batteries can cost anywhere from several hundred to several thousand dollars to purchase and install. Batteries also offer a limited lifespan and will eventually need to be replaced.
Maintenance: Different batteries maintain different maintenance requirements in order to operate safely. Proper maintenance can be both costly and time-consuming.
Space: Batteries take up space and, depending on the size of your system as well as the type of battery you choose, the amount of space needed to store and adequately ventilate your batteries may be significant.
Safety: There are inherent risks associated with operating any batteries (overheating, leaking, etc.), especially if products are not installed and maintained properly.
Complexity: Adding batteries to your system will create additional complexity with regard to wiring and setup. Depending on your level of electrical expertise, you may wish to consider consulting or hiring a professional when installing solar batteries.
How many batteries does it take to power a house with solar?
The quantity of batteries you will need depends upon the type of battery, the storage capacity of the battery, the size of your solar system, the energy requirements of the circuits and appliances you wish to power and the amount of time you wish to provide power to your circuits/appliances.
The best way to estimate your energy needs is to figure out the kilowatt-hours you would require in the event of a power outage and compare that to the capabilities and specifications of the batteries and systems you consider.
How long do solar batteries hold charge?
The length of time your solar battery will hold a charge depends on the battery and the amount of energy being stored. A standard solar battery will store energy for one to five days.
What solar batteries are the best?
The best type of battery for one system may not be the best for another. For a home solar system, an adequately sized battery bank of sealed lead-acid batteries or a lithium-ion battery system will likely fit the bill, depending on the intended use (daily, short/long duration, etc.)
Some common brands for solar batteries include: Tesla, Panasonic, LG Chem, Electriq Power, Enphase, Generac, Sunpower, Solar Edge, SunVault and Renogy.
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Solar Energy Storage: A Critical Part of Your Energy Mix
While there are many benefits to installing a solar energy system for your business, there is one obvious limitation – the sun doesn’t shine 24 hours a day.
So how do business owners use solar to keep operations running smoothly 24/7? Imagine having energy on demand anytime you need it day or night, even when the utility or grid can’t provide it. Now imagine, that energy is coming from a carbon-free, clean source, right on your roof or outside your door. This is what combining solar with energy storage can do for your business.
It’s the perfect pairing – a solar panel system with energy storage technology.
So what is solar energy storage?
At certain times of day, it’s possible that your solar system generates more electricity than you can use in real time. You have several options for that excess electricity. One, you can, in most areas, sell it back to your utility, but at a fraction of your utility rate = bad economics. Two, you can limit the production of your solar panels so that you generate only what you need = wasteful. Or three, you can invest in a solar energy storage solution to maximize your investment = genius.
Connecting your solar panels to solar energy storage technology is the best way to maximize your investment in solar power.
Simply put, energy storage solutions like batteries allow you to bank the excess energy generated by your solar array for future use – giving you energy flexibility and independence.
Advantages of solar plus storage solutions
There are three primary reasons why you should consider storing the excess renewable energy produced by your solar panels.
Solar panels provide the power, storage provides the resilience
First, solar energy storage makes your business resilient because you have a reliable source of electricity no matter the state of the utility grid – or the time of day.
It’s no secret that the US power grid is facing unprecedented challenges due to aging infrastructure and a growing number of extreme weather events. Utilities and the organizations responsible for electricity transmission are being forced to proactively manage electric loads to prevent widespread long-term outages. The way they do this is by implementing rolling blackouts or intentionally shutting down power to certain sections of the grid, leaving some customers in the dark.
While the shutdowns are for the benefit of the greater good, that’s not a whole lot of comfort if it’s your business that’s gone dark.
Rolling blackouts are a fact of life during California’s wildfire season, but now several transmission providers are warning customers in other parts of the country that there will be rolling blackouts this summer.
But, if your business is equipped with a properly sized solar plus storage system, you can have reliable power 24/7. Your solar panels can provide backup power during the day with the electricity you’ve stored in your batteries taking over at night.
Other options provide resilience – sometimes
The only other backup power solution is a generator that burns fossil fuels like natural gas or diesel. But if you’ve lived through a major storm that’s closed down roads for days or weeks at a time, you know that getting fuel to power your generator can be problematic. Also, fossil fuel costs continue to rise due to supply disruptions, global conflicts and economic forces – all things outside your business’ control.
With solar plus storage, you won’t have to shutter operations during a power outage, losing both time and money from lost inventory or lost production.
Lower and more predictable energy costs with a solar Plus Storage energy system
Solar energy storage solutions can also help make your energy costs more predictable. Commercial and industrial businesses typically pay more for electricity during peak demand hours, which is one of the primary reasons businesses invest in solar – a solar panel plus storage system can help mitigate those higher rates by reducing the amount of electricity you need to pull from the power grid.
The math is simple – the less electricity you pull from the grid, the lower your utility bill will be and the more you’ll be able to predict your monthly energy costs. Plus, as electricity rates from your utility increase, you are saving that much more over time. Therefore, solar plus storage is an excellent way to hedge against energy-inflation.
As noted earlier, there are likely times during the day when you’re generating more solar electricity than you can use. If you’re looking to mitigate costs, you want to reduce the amount of energy you pull from the grid during peak demand hours – but that’s typically during times of day when the sun is moving lower in the sky and your solar panels aren’t as efficient.
Now, think about how much more powerful your solar system would be if you added an energy storage component. If you have excess solar energy stored in lithium ion batteries or another energy storage technology, you’ll be able to use that power to minimize your demand for grid energy during peak hours, which saves you money.
Reduce your carbon footprint with renewable energy
The third reason you should consider a solar energy storage solution is that it can help further reduce your carbon footprint.
Not only does integration of solar into your energy mix provide resilience and more predictable energy costs, it also reduces the carbon emissions associated with your business. While renewable energy adoption is growing among utilities, the grid still generates significant amounts of pollution. Again, the math here is simple. The lower the electricity demand from customers, the less energy the utility needs to generate from fossil fuels and the less carbon pollution is released into the atmosphere.
Sustainability is good for business
Reducing your carbon emissions makes good business sense. and more companies are selecting partners based in part on a vendor or supplier’s efforts to source and use clean energy. Solar panels combined with solar energy storage could give you a leg up over the competition the next time you bid for a contract.
So, whether you bank the power to reduce the amount of energy you pull from the grid overnight or during peak demand hours, or you store it to provide resilient backup power during an outage, the key here is that energy storage allows you to decide how to best utilize your solar power resources.
All the while, you’re putting your business in its best light to vendors and stakeholders looking to do business with you.
Three ways to store solar energy
There are three primary ways to store solar energy – thermal, mechanical, and solar batteries. Let’s take a look at the differences.
Solar Plus batteries
If you’re investigating solar energy storage for your business, solar plus batteries (or solar batteries) are probably the most viable option – both in terms of economics and practicality. Let’s talk a bit about how solar batteries work.
Solar batteries are a type of electrochemical battery; they store and release energy through a chemical reaction. The most common types of electrochemical batteries are lead-acid, nickel cadmium (NICd), nickel metal hydride (NiMH), and lithium ion (Li-ion).
You’re probably most familiar with lithium ion batteries, which are found in most cell phones and laptops, as well as in many of today’s hybrid and electric vehicles.
The electric vehicle industry’s adoption of lithium ion batteries has driven significant advancements in technology over the past few years. In an effort to help EVs go further more affordably, manufacturers have worked to increase battery storage capacity and reduce the price tag of lithium ion batteries.
Lithium ion batteries and solar energy storage
While both lithium ion and lead-acid batteries can be used to store excess solar energy, lithium ion technology seems to be winning as the solar battery of choice. Li-ion battery chemistry is well understood and safe, and the batteries are also smaller and relatively lightweight compared to others on the market. They also have high energy storage capacity and the ability to be repeatedly recharged – both key selling points for those looking to maximize the ROI of their solar systems.
Thermal energy storage
Thermal energy storage is one way to bank solar energy, though this is typically only used in very large scale installations called concentrated solar power (CSP) plants. The technology requires a fluid, such as water or molten salt, that can absorb and retain heat from the sun. This fluid is then stored in an insulated tank. When the stored solar energy is needed, thermal storage systems use the heated fluid to boil water and create steam, which in turn powers turbines that generate electricity.
Mechanical energy storage technologies
Flywheel, pumped hydro, and compressed air are other technologies used to store energy, though due to costs, space requirements, and the sheer number of moving parts, these solutions are typically deployed only by very large businesses or at the utility scale level. All of these technologies convert excess electrical power into mechanical power, which is then converted back to electricity when needed.
The easiest illustration of mechanical energy storage is a hydroelectric dam. In this scenario, you use your excess energy to pump water uphill into a reservoir. Then, when you need that stored energy, you release the water back downhill through turbines that generate electricity.
Government investments in battery storage technology
It’s also important to note that there are considerable funds earmarked in the recently passed Infrastructure Investment and Jobs Act (IIJA) that will continue the development of new battery technology in the years to come.
Solar storage is a long-term investment
One of the first questions businesses have when thinking about whether or not to store solar energy is how many solar batteries do I need? The answer is always, “it depends.”
Will your solar storage system just be providing backup power in case of an outage or will you be using it to manage your energy costs 24/7? Will you be powering your entire operation or just key pieces of equipment?
Let the experts in solar energy storage guide the way
It’s a complicated process to figure how much solar energy you need, and that’s why it’s critical that businesses work with a reputable solar provider experienced in commercial installations.
You want to find a partner that will work with you to design a solar storage system that’s both right-sized for your energy needs today, and capable of growing with your business in the future.
“Velo Solar has over a decade of experience, designing custom energy storage solutions to match our customer’s needs with the latest, proven technology to deliver energy flexibility and resiliency”
How long do solar batteries last?
The other reason you want to work with an expert is that a solar system and connected solar storage technology is a long-term investment. Li-ion batteries used in solar applications, for example, typically have a lifespan of 15-30 years, depending on the model and factors like the number of times they’re charged and discharged, environmental conditions, and how well they’re maintained. That means you want to make the right investment from the start.
Working with a reputable commercial solar partner like Velo Solar will help ensure that your solar storage system will delivery energy flexibility for your business for years to come.
Solar-Plus-Storage: The Future of Business Energy Efficiency
One of the biggest challenges with solar generation is that it’s intermittent – you can’t generate solar energy when the sun isn’t shining. Another challenge is that at certain times of day, your solar generation may be greater than the amount of electricity you can actually use in real-time. What happens to that excess energy?
- In some areas, you can sell it back to your utility company through what’s called net metering. But, you only get a fraction of the rate you’d pay for power from the electric grid. Sure, you might get a break on your utility bill, but the economics here aren’t great.
- You could throttle the production of your solar panels so that you only generate as much electricity as you need. But in this scenario, you’re leaving a lot of value on the table.
Fortunately, there’s a third option that solves both the intermittency and excess solar generation challenges – you add storage. Adding energy storage to your solar system can maximize your investment, and we think it’s pretty genius. Here’s why.
What is Solar-Plus-Storage?
As you probably guessed, a solar-plus-storage system includes a solar array that’s co-located with an energy storage solution. This setup allows you to bank the excess energy generated by your solar array for future use – giving you energy flexibility and independence.
Most storage systems used by commercial and industrial operations include lithium ion batteries, but there are other options. We’ll delve into the different types of battery storage in a bit, but first, let’s look at how storage can maximize your solar power investment.
The Benefits of Solar-Plus-Storage
There are three primary reasons why you should consider adding storage to your solar system, which is also called solar PV:
Resilience
Severe weather is causing more frequent and longer power grid outages. than just an inconvenience, long-term power outages are costly for businesses in terms of lost productivity, inventory, and opportunities.
Solar-plus-storage makes your business more resilient because you will have a reliable source of electricity no matter the state of the utility grid – or the time of day.
Your solar panels can generate backup power during the day, storing any excess electricity you generate in your battery system. The batteries can then be discharged to power nighttime operations.
Lower and more predictable energy costs
A solar-plus-storage system can also reduce your electricity costs and make your utility bill more predictable. Commercial and industrial businesses (CI) typically pay more for electricity during peak demand hours. If you’re generating your own solar power, you can use that energy during the more expensive hours for the grid, avoiding some or all of your utility’s peak demand charges.
Of course the challenge with this is that peak demand times are typically during times of day when the sun is moving lower in the sky and your solar panels aren’t as efficient. This is where storage comes into play. If you have excess solar energy stored in batteries or another type of storage technology, you’ll be able to use that power to minimize the amount of grid energy you need during peak hours, which saves you money.
Maximize the use of renewable energy
In addition to increasing the financial value of your PV system, storage can maximize your use of renewable energy, helping you to further reduce your carbon footprint and meet your sustainability goals.
As we’ve discussed, storage allows you to shift when you use the excess energy your solar array generates. That means that when your solar PV system isn’t generating power at night, or it’s not producing enough energy to meet your power needs on a cloudy day, you can draw on that stored energy rather than a fossil fuel powered source, such as the electric grid.
The electric grid still largely uses fossil fuels to generate power, so the math here is simple. The lower the electricity demand from customers, the less energy the utility needs to generate, and the less carbon pollution is released into the atmosphere.
Sustainability is good for business
Reducing your carbon emissions also makes good business sense. Companies are increasingly selecting partners based in part on a vendor or supplier’s efforts to source and use clean energy. Solar panels combined with storage could give you a leg up over the competition the next time you bid for a contract.
Types of Solar Energy Storage
There are three primary ways to store solar energy – thermal, mechanical, and batteries. Let’s take a look at the differences.
Thermal technologies
Thermal energy storage is typically only used in very large scale installations called concentrated solar power (CSP) plants. The technology requires a fluid, such as water or molten salt, that can absorb and retain heat from the sun. This fluid is then stored in an insulated tank. When the stored solar energy is needed, the thermal storage system uses the heated fluid to boil water and create steam, which powers turbines that generate electricity.
Mechanical energy storage technologies
Flywheel, pumped hydro, and compressed air are other technologies used to store energy, though due to costs, space requirements, and the sheer number of moving parts, these solutions are typically deployed only by very large businesses or at the utility scale level. All these technologies convert excess electrical power into mechanical power, which can then be converted back to electricity when needed.
Battery storage
If you’re investigating solar energy storage for your business, batteries are probably the most viable option – both in terms of economics and practicality. Here’s why.
Solar batteries are a type of electrochemical battery; they store and release energy through a chemical reaction. The most common types of electrochemical batteries are lead-acid, nickel cadmium (NICd), nickel metal hydride (NiMH), and lithium ion (Li-ion).
You’re probably familiar with Li-ion batteries because they’re commonly used in cell phones and laptops, as well as in many hybrid and electric vehicles. Driven by the demands of the electric vehicle industry, battery manufacturers have made technological advancements in the past few years that have increased the storage capacity and reduced the price tag of lithium ion batteries. These are just two of the reasons that Li-ion is emerging as the battery of choice for the solar industry.
Li-ion chemistry is well understood and safe, and the batteries are smaller and relatively lightweight compared to other options, which means they can be installed just about anywhere. They’re also resilient – they’re designed to handle the repeated charge and discharge cycles they’ll encounter as a part of a PV storage system.
All these factors make Li-ion batteries a great solution for businesses looking to maximize the ROI of their solar power installation.