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Using batteries for rate arbitrage
If you live in an area with time-of-use (TOU) electricity rates or demand changes, adding a battery to your solar panel system can help you save on your electric bill.
When your solar panel system generates extra electricity throughout the day, you can charge your battery with that energy for free. Then, during times when it’s more expensive to use electricity (e.g. peak hours), you can use stored electricity from your battery to power your home instead of drawing costly electricity from the grid.
Learn more about using solar batteries for rate arbitrage
How much can you save with a solar battery?
If you live somewhere with lucrative battery incentives and live in an area where you can use batteries for rate arbitrage, your payback period could be as short as five years – but in reality, it varies from state to state, battery to battery, and home to home. If you don’t experience time-varying rates and can take advantage of net metering, a battery may not provide any financial savings. That said, most people don’t install batteries for financial reasons, but rather for home resiliency benefits.