Why Choose a Solar Energy Storage System?

Why Choose a Solar Energy Storage System?

Solar energy storage system

Why Choose a Solar Energy Storage System?

Solar energy storage devices are able to gather power during times of high generation and low demand, and then release that energy when it is needed. This is done by a chemical redox process within the battery’s electrodes which consist of conductive materials separated by a separator.

Solar+storage systems are an excellent way to become less dependent on the grid and make your home more self-sufficient. They also offer many benefits, including:


The reliability of a solar energy storage system means you’re less reliant on the grid, and therefore protected from outages. It also allows you to avoid paying expensive utility rates, and helps you know exactly where your power comes from.

Without storage, there may be periods of low solar production and high demand for electricity. These situations require the grid operator to take some generation offline, or curtail it, in order to balance electricity loads and prevent over-generation that can damage the grid. Storage can be used to fill or charge when generation is available and dispense or discharge when electricity demands are greatest.

This paper presents an optimization model of a stand-alone hybrid photovoltaic (PV)/battery energy storage system to provide load demand in remote areas in Iran. A modified harmony search algorithm is utilized to minimize total life cycle cost (TLCC) and loss of load probability. The effect of reliability indexes and economic parameters based on PV and battery prices is also investigated.


Adding storage to your solar energy system maximizes the low-carbon energy you generate. By storing excess electricity produced during the day, you can reduce your reliance on the grid and save money on utility bills.

Most systems use lithium ion batteries that are designed for the cyclic charging and discharging of energy. This technology allows for the storage of solar power in a safe, compact, and cost-effective way.

The flexibility of a solar + battery system is also beneficial for homeowners who have Time-of-Use rates, as they can store their renewable electricity for later use during peak demand times. Likewise, solar + storage can provide backup power during outages, and help protect you from rising utility rates during blackouts.

Energy Self-Sufficiency

Energy self-sufficiency is a key objective for many customers when installing solar, because it reduces your dependence on the utility power grid and makes you less susceptible to rate increases and extended outages. It is achieved by pairing solar with a battery storage system, which allows you to store Solar energy storage system excess energy generated on a sunny day and use it at night or on cloudy days.

To achieve energy self-sufficiency, you need a photovoltaic system with the right dimensions for your consumption and a battery storage system that is proportionally sized to it. This is why monitoring and understanding your consumption data is so important – it helps you to minimize energy waste.

The costs of different self-sufficient cases vary largely according to PV efficiency, rooftop and facade area and the cost of electricity supply. However, the overall discounted cost differences between these cases are quite small (Fig. 6).

Time-of-Use Rates

Many solar customers choose battery storage because it helps them reduce their electricity bills by avoiding peak demand charges. Without a battery, energy your solar panels generate but don’t use will be sent back to the grid for no compensation. With a solar energy storage system, this power is banked in your on-site batteries during the day instead of going to the utility grid.

Then, at night you can draw on your battery’s power and avoid paying the higher rates set by your utility for electricity during their peak demand hours. This is called “peak shaving.”

Lithium ion battery systems are smart enough to know when to shift their usage from the solar to the grid and vice versa to take advantage of the best energy prices. To learn more about how your specific system works, talk with a qualified solar and storage sales and installation team.

Tax Incentives

There are many state-level incentives for homeowners who add battery storage to their solar energy systems. These programs can provide additional savings on your installation costs and reduce your electricity bills. The federal homeowner solar tax credit, or investment tax credit (ITC), can reduce the cost of a solar power system and battery storage by paying for a percentage of your total project costs.

In August 2022, President Biden signed the Inflation Reduction Act raising the ITC to 30% and extending it through 2034. This new ITC will also cover standalone energy storage systems, pending IRS guidance.

To qualify for the ITC, your solar + battery system must be owned by you and used solely for home purposes. Solar energy storage system You can finance or purchase the solar system and battery together, or you can install the batteries first and then buy a financed solar power system later.

Local Incentives

Many states and utilities offer incentives to help homeowners save on energy costs when they pair a solar power system with a battery. For example, in Oregon, the statewide solar rebate and sales and property tax exemptions are combined with a top-notch net metering program and great local incentives to provide a significant savings on your PV and battery system cost.

In addition, all home battery systems qualify for the federal Investment Tax Credit (ITC) to give you 30% of your upfront system costs back at tax time. If you are considering going solar, be sure to check out the Database of State Incentives for Renewables and Efficiency to see what’s available in your area.

For residents of Long Island served by PSEG, the utility offers an upfront incentive for a new solar plus energy storage system, or retrofitted solar project with a battery, that participates in their Energy Storage Rewards program. The program requires participants to allow the utility to activate their batteries for a few events each summer to reduce strain on the grid.