Resources > Solar and storage: an ideal pair

Solar and storage: an ideal pair

• Factsheet

May 9, 2024

What is battery storage?

Batteries allow you to store electricity and use it later. Combined with solar, batteries can charge during the day when the sun is shining. They can power your electric needs when the sun sets. They also ensure you have electricity when the grid goes down.

Why pair solar and battery storage

There are several benefits to pairing solar systems with batteries.

Maintain power when electric service stops

Most rooftop solar systems are connected to the electric grid. This means that when the power goes down your solar system automatically shuts off. It does so as a safety measure. If your system is generating electricity and sending it out along electrical lines, it may harm the repair crews working to restore electric service.

Pairing solar with storage means you can keep the lights on if your utility service goes down. 

Battery storage does come at a cost. Adding battery storage to your solar array could increase the price so much that you may not recuperate your initial investment through utility bill savings. However, if you live in an area with poor electric reliability, you may find the trade-off worth it. Battery storage will keep critical loads, like refrigerators and medical equipment, working when utility power goes out.

Manage energy use and save money

Most utilities have started varying the cost of electricity based on the time of day (called “time of use” pricing). They’ve done so to encourage their customers to use less electricity when demand is high. With battery storage, you can spend less on electricity. You can store the solar electricity you’ve generated. Then you can deploy that stored electricity during times when electricity costs are high.
Additionally, batteries can offset demand charges, which are becoming more common in utility rates designed specifically for solar homeowners. Together, these cost mitigation strategies are known as energy arbitrage.

Community resilience

Solar systems with battery backup can provide individuals and communities with much needed resiliency in the face of natural disasters. These systems provide power when the electric grid goes down. This can protect vulnerable communities from a disaster’s most immediate and devastating effects. If fuel is unattainable during a disaster, solar-powered battery systems have a clear advantage over gas-powered generators. Solar-powered systems provide fuel on site.

How the new tax credit makes batteries more affordable

In 2022, Congress passed the Inflation Reduction Act (IRA). This bill provides a 30% tax credit for the purchase of batteries. This credit is available until 2032. It steps down to 26% in 2033 and then 22% in 2034. Battery storage systems with at least 3 kilowatt-hours of capacity qualify for the credit.

Ways SUN is helping homeowners add storage

• We’ve put together a comprehensive guide for homeowners who are interested in battery storage. Download the free guide now.
• We’ve held multiple webinars about solar and battery storage. View the most recent webinar, Solar + Storage, recorded in March 2023.
• We’ve conducted an in-depth analysis of the current “state of the art” of solar and storage. We wanted to see if solar and storage is a viable way to protect vulnerable communities from the impacts of climate change. We used the Hampton Roads, Virginia region as a test case. We modeled the financial feasibility of these projects. We then identified ways to scale up their deployment. Download the full report on solar + storage for resiliency.
• Our Maryland Storage Co-op Pilot in 2017 was our first co-op that focused on adding battery storage to existing solar systems. Today’s solar co-ops offer solar and storage options.
• We’ve compiled state-specific information about solar + storage in D.C., Florida, Maryland, and Virginia. Live elsewhere and have questions? Contact our Solar Help Desk!

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