Along with panels and inverters, solar battery is rapidly becoming an essential component of modern solar systems.

Solar batteries have many benefits and can be of critical importance for homeowners looking to protect themselves against power outages or become energy independent.

However, pairing solar with battery storage may not be a great fit for everyone, so it’s worth exploring the pros and cons.

Load displacement and net metering are two distinct strategies for  managing energy generation and consumption, each with its own  benefits and applications.

Definitions

• Net Metering: This is a billing arrangement that allows customers who generate their own electricity (typically through  renewable sources like solar panels) to send excess electricity  back to  the grid. In return, they receive credits on their electricity bills,  effectively offsetting future energy costs. This system is beneficial for users who generate more energy than they consume, especially during peak sunlight hours. 
   
• Load Displacement: This refers to generating electricity on-site (behind the meter) solely for selfconsumption.  The energy produced is used directly to reduce the amount of electricity drawn from the grid, with no excess energy exported. Load displacement systems can utilize renewable or non-renewable energy sources and are designed to meet the specificenergy needs of the facility where they are installed. 
   
   

Key Differences

1. Energy Export:

• Net Metering: Allows for the export of excess energy to the  grid, providing credits for future use.
• Load Displacement: Does not allow for energy export;  all generated energy is consumed on-site.

2. Billing and Credits:

• Net Metering: Customers receive credits on their bills for the  energy they send back to the grid, which can help reduce  overall energy costs.
• Load Displacement: There are no credits; the focus is on  reducing grid consumption directly through on-site generation.

3. System Design:

• Net Metering: Systems are often designed to maximize energy production, with the expectation that some energy will be sent back to the grid.
• Load Displacement: Systems are tailored to match the  facility's energy consumption, ensuring that all generated          energy isused immediately or stored for later use  (e.g., in batteries). 
   
   

Benefits

• Net Metering: Provides financial incentives for renewable  energy generation, encourages investment in solar and other  renewable technologies, and can lead to significant savings on  energy bills over time.
• Load Displacement: Offers greater control over energy  consumption, can enhance energy security, and is particularly  useful for facilities with consistent energy needs that can be  met by on-site generation.

Conclusion

Choosing between load displacement and net metering depends on  specific energy needs, facility infrastructure, and financial goals.  Evaluating the benefits and limitations of each option can help  determine the best strategy for managing energy consumption and  costs effectively. For tailored advice, consulting with energy experts  or consultants can provide valuable insights into which option aligns  best with your energy strategy. 

At the most basic level, battery storage allows power produced by a solar system to be stored for use at a later time.

All solar systems produce power at different times than homeowners use it. Solar systems will typically overproduce during the middle of the day compared to what the homeowner needs. Without battery storage, this extra production is back-fed to the utility grid through a program called net metering.

By selling their excess power to the grid, homeowners accumulate credit that can be used to offset the power they draw in at night when the solar panels aren’t producing power.

So, why pay for a solar battery when the grid is there to credit you for your excess power anyway? As it turns out, there are several key advantages to pairing your solar system with battery storage.

Protection Against Power Outages

For most homeowners, the single biggest benefit of solar batteries is the ability to have backup power during a grid outage.

If you have a solar system without battery storage and you experience a power outage, the solar system will automatically shut off. Electrical code requires that solar systems shut down during power outages so they don’t accidentally backfeed live power to the grid if the utility company has repair workers trying to fix the lines. 

By contrast, with a solar and battery system, an additional device called a backup gateway is also installed that allows the house to “island”, or isolate, itself from the grid. 

The moment the outage occurs, the gateway instantly detects the event, disconnects the home from the grid, and turns on the battery. The system then becomes a closed loop, where the battery powers the home’s backup circuits and the solar panels recharge the battery.

In this respect, solar batteries can function very similarly to home generators, except the time they can run for is a bit different. Solar batteries are far better in every measurable way. Check out our other article on the top ten reasons solar batteries are better than generators.

Many utilities are moving towards time of use (TOU) rate plans for their residential customers. These rate plans more accurately reflect the changes in wholesale power prices throughout the day.

Typically, these plans have peak charges during the late afternoon and early evening, when demand spikes as everyone goes home after the workday and increases their power consumption. The off-peak times are during the middle of the day, when solar systems everywhere are producing excess power, and overnight, when demand is lowest.

So, what are the options when it comes to solar batteries?

The most common batteries on the market today are the Tesla Powerwall, Growatt, LG Chem, and Sonnen. Check out our individual articles for deeper dives on each of these products.

Homeowners can also purchase multiple batteries if they want to. The right number of batteries depends on a number of factors, including the size of the solar system, the amperage of circuits that need to be backed up, and the desired backup duration.

Speak with one of our Energy Advisors if you’d like to find out the right combination for you.

Solar batteries have become an important aspect of modern solar systems, and their importance will only grow over the coming years.

Battery capability will continue to advance as prices continue to fall. Electric utilities are increasingly turning to batteries to stabilize their grids, with some utilities even paying homeowners for access to their home batteries to dispense power to the grid when it’s needed most.

Without question, solar batteries are here to stay