Install a Home Battery
Install a what? A home battery system for electricity may sound strange now, but in a few years, they will become commonplace as a great way to save money and help build our clean energy future.
Your Impact
Action Steps & Tips
Introduction
Currently, home batteries are on the expensive side. However, battery technology is improving so rapidly that they will soon be a cost-effective and viable option for many homes, providing the last piece we need to leave fossil fuels behind. Learn more about home batteries below.
1Learn about the benefits of home batteries
Here are some of the benefits of home batteries:
Backup power. A home battery stores electricity for when you need it. If you have solar panels, you can charge the battery with energy from your panels during the day and then use the power at night. Even if you don’t have solar, you can still charge with electricity from the grid and then use it as a backup power source when needed, like during a power outage. No more looking for candles or flashlights—just switch to your battery backup. Home batteries help create reliable power.
Save money. There are a few ways to save money with a home battery:
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If you have home solar but pay high electricity prices at night, a home battery can save you money. Just store the extra energy from your solar panels during the day and use it at night when prices spike. This is generally an option when you pay a different price for electricity depending on the time of day (called time of use rates). Another is if you pay more depending on how much total electricity you use. If using a battery keeps you from moving into the high priced tier, then it can save money. The other time a home battery pays off is if your utility does not pay you full price for extra energy you send to the grid. If you are only paid “wholesale” prices (a few cents per kWh) for excess energy from your solar panels, your extra energy is more valuable to use at home.
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No solar? You can still save money if your utility offers a time of use plan. With a home battery, you can charge when rates are the lowest, and then use the battery to power your home during the time of day when the rates are the highest. Often, that is a savings of $0.08 - $0.12/kWh. This can add up and can save you a lot of money.
Work with your solar installer to calculate whether a home battery makes sense for you. If you’re not installing solar, check with your utility on time of use rate program options to calculate your potential savings. Some utilities actually have incentive programs for homeowners willing to install a home battery and provide back up energy. Check with your utility or in the resources section below for information on programs.
Balance energy on the grid. A home battery can also help balance the energy demands on the grid in your community. During times of peak energy demand, your home battery can send energy back to the grid, improving its reliability and helping to provide backup as we rely more on renewable energy.
Using batteries to balance the grid is not just a home power option. Utilities are starting to use batteries to backup solar power as well. This will help utilities balance power needs as we transition to 100% clean renewable power. And it’s cost effective. Battery and solar costs have come down so much that now a solar + battery power plant option is cheaper than both nuclear and coal electricity generation and almost the same cost as natural gas. This is great news—it means that renewable energy can be a reliable and cost competitive electricity source. In fact, since prices continue to drop, soon it will be cheaper than all fossil fuel options.
Energy independence. A home battery with solar panels can actually allow you to disconnect from the grid. In general, it is better to stay connected to the grid if you have the option, however, with a home battery you could disconnect if needed. In fact, that’s how many remote homes get power! If you have a home that is far away from the main electricity lines, solar panels and a battery can provide home electricity “off grid”. Even if you don’t disconnect from the grid, knowing you can power your home on your own if needed is a great feeling!
So imagine the future today—it isn’t quite like the Jetsons, but it will be a place where a home battery system will become a commonplace part of any home. (For you youngsters, the Jetsons was a cartoon with a family from the future with cars that fly...)
2Schedule it on your plan, or purchase and install
Schedule it out on your plan. Today a home battery starts at $5,000+ ($400+/kWh) or more. Installation adds an additional $500 or more. At that price, it takes up to 15 years or more to break even through cost savings, depending on your electricity rates.
In a few years, however, home battery costs will come down a lot. When they reach around $1,000 or $150/kWh or lower, the average payback time will be 5 years or less. With a warranty of 10 years and a longer battery life, you could save up to $1,500 or more in electricity costs over the lifetime of the battery. It makes sense to schedule this action out a few years in your plan!
Purchase and install! If you are installing solar or have a local incentive program or time of use rate that makes the numbers work to install a battery now, then go for it! The best place to start is to talk with a home solar provider that also installs batteries to work through the cost and confirm this is a good option for you. A home battery system is best installed by a professional. If you purchase now, inquire about federal and state level credits and incentives.
Congratulations! You are now master of your own energy!