Will solar panels continue to supply electricity when the grid goes out?
Homeowners are often surprised to learn that their solar system will not provide backup power in the case of a power outage. Most traditional solar installations are grid-tied, allowing your system to send excess energy to the grid when production is higher than consumption. It also lets your home pull power from the grid when needed (i.e., at night or during a storm). During a power outage, solar systems are intentionally designed to stop sending energy to the grid as a safety mechanism to protect utility workers repairing a power line. Therefore, your solar system can still produce power during an outage but is purposefully disabled from doing so.
Installing a battery allows your solar system to function independently from the grid during a power outage. This ensures your home will have dependable backup power during outages and storms.
Who is a good candidate for battery backup power?
- Anyone who wants peace of mind and energy dependability should consider installing batteries with their solar system.
- Those who live in neighborhoods with frequent power outages. In the United States, 36.7 million people were affected by power outages, according to a 2017 Eaton Study. (1) During a week of record high temperatures in Northern Colorado, some residents experienced daily power outages for a week, with some homes going for 22-hour stretches without energy. (2) This required residents to incur the unexcepted cost of generators, hotel stays, wasted food and more.
- Those with illnesses or disabilities who depend on medical equipment. According to the U.S. Department of Health & Human Services, there are 2.5 million people in the United States who rely on electricity-dependent medical devices, such as oxygen machines, ventilators, home dialysis treatments, lifts, medication nebulizers, or even refrigerated insulin. (3) During the rolling Texas blackouts, just one Fort Worth ambulance provider fielded 50 calls in 2 days from patients losing power to their life-saving medical equipment. (4)
- Those who can’t afford to miss work. With many Americans now working from home, power outages disable WIFI and technology, disrupting their ability to work. When time is money, backup battery power ensures work and school activities can continue smoothly during outages.
- Those who own electric vehicles. EV purchases have grown tremendously and are anticipated to reach 29.5% of the total market share by 2030. (5) As the electric vehicle market grows, we will grow increasingly dependent on electricity to charge vehicles. With battery backup, a power outage won’t equal a limited driving range for your uncharged electric vehicle.
- Those who live in areas with severe weather. Imagine preparing for a large forecasted snowstorm. In addition to buying extra groceries and essentials, you program your battery to switch from a 20 percent reserve to 100 percent backup. Your home is now prepared to stay safe and warm while enduring any storm.
Ways to Make Battery Cost More Affordable
Battery prices have dropped by 76% since 2012, according to Climate Central. (6) It’s expected that battery technology will continue to improve while growing in affordability. Installation costs are forecasted to fall by more than 50% by 2030, while battery lifetimes could see a 50% increase (7)
Even with these advancements on the horizon in the next decade, there are ways to make batteries more affordable today.
1. Batteries installed with and charged by solar are eligible for the 26% federal tax credit savings.
“Energy storage devices that are charged exclusively by the associated solar PV panels” are eligible for federal tax credit savings, according to the U.S. Department of Energy’s Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics. (8)
This would amount to the following savings:
Single 9.8 kWh battery with installation
- Upfront Cost: $11,500-$14,000
- Federal Tax Credit Savings: $2,990-$3,640
- Net Cost: $8,510-$10,360
Two 19.6 kWh batteries with installation
- Upfront Cost: $18,500-$21,000
- Federal Tax Credit Savings: $4,810-$5,460
- Net Cost: $13,690-$15,540
(These are estimates and pricing is subject to change.)
2. Batteries are eligible for solar financing.
There are many attractive solar financing options to incentivize renewable energy growth. Batteries charged by solar power (versus electricity from the grid) are eligible for tax credits and solar financing. This allows homeowners to roll upfront battery costs into an affordable monthly payment.
3. Batteries allow homeowners to maximize time of use payback.
Several utility companies offer time of use payback, compensating homeowners at higher rates when sending energy to the grid during peak usage times. Homeowners can program their battery to save energy during low-rate hours and then deploy power to the grid during peak time-of-use rates. This accelerates battery payback by increasing energy credits on your bill.
4. Batteries supply energy during peak usage times.
Solar systems can only generate power during daytime hours. Therefore, homes with solar utilize free energy during the day but rely on the grid to provide electricity at night. Frequently, utility companies charge higher time of use rates for evening power. A battery helps reduce reliance on evening energy rates. Homeowners can charge their batteries with solar power during the day then access this stored energy at night, requiring residents to use less electricity at peak rates.
5. Watch for state-level incentives and rebates.
States are adopting incentives for installing battery storage, including California, Maryland, Massachusetts, and New York. Some rebates are paid upfront after installation, while others are performance-based. (9) California’s Self-Generation Incentive Program (SGIP) provides a 15-20% rebate for the cost of a battery. In addition, the program offers incentives to cover the total battery price for qualifying residents living in high fire-threat districts or for those dependent on medical devices. (10)
How much backup power will a battery provide?
Most homes use 20-50 kWh hours of energy per day. Installing 10-20 kWh worth of battery storage will cover essential energy requirements in the case of an emergency, but not all home functionalities. Our design team will help you prioritize which appliances and functions need backup priority. For example, a fully charged battery can keep a heater, refrigerator, WIFI, and a few outlets running for 24 hours. Keep in mind your solar system will continue to charge your battery during daytime power outages, extending the time your home can function without power.
Is it a good time to buy batteries?
One of the greatest concerns many people and companies have when adopting new technology is it becoming outdated before it can make a return on its investment. There can also be concern over waiting too long to purchase a battery system and missing out on potential benefits. The average battery has a performance life of anywhere from 10-15 years. So even with prices set to fall within the next decade and improvements on the horizon, now is still the right time to step into the battery energy storage market. By the time the next generation of batteries comes to market, a consumer would most likely be seeking a replacement.
Can I install a solar system now and add batteries in the future?
If you would like to leave the option open for adding batteries in the future, it is essential to plan for this during the design process. Batteries are only compatible with specific inverters. Therefore, our team can design your system with inverters that would support the addition of a battery in the future.
Free Battery System Design
Batteries offer homeowners energy independence and dependability. While batteries do require additional investment, it’s hard to put a price on peace of mind. If you’re interested in learning more about battery storage, our team is here to answer your questions. Contact us for a free solar and battery system design today at 970-449-6270 or sales@solarpathways.com.
References
- https://www.ecmag.com/section/systems/367-million-affected-power-outages-2017-eaton-study
- https://www.cyberjacques.com/after-week-of-power-outages-amid-record-heat-some-colorado-families-forced-to-evacuate-their-homes-cbs-denver/
- https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/10/02/how-hurricane-responders-track-people-whose-lives-depend-on-power
- https://undark.org/2021/05/11/power-outages-medical-equipment/
- https://evadoption.com/ev-sales/ev-sales-forecasts/
- https://www.climatecentral.org/gallery/graphics/solar-wind-and-battery-prices-falling
- https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2017/Oct/IRENA_Electricity_Storage_Costs_2017_Summary.pdf
- https://www.energy.gov/sites/default/files/2021/02/f82/Guide%20to%20Federal%20Tax%20Credit%20for%20Residential%20Solar%20PV%20-%202021.pdf
- https://www.energysage.com/energy-storage/benefits-of-storage/energy-storage-incentives/
- https://www.pge.com/en_US/residential/save-energy-money/savings-solutions-and-rebates/understand-the-solar-process.page
