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The Bright Future of Solar Plus Storage: A Sustainable Solution for Homeowners


The potential for renewable energy is limitless, and we are only scratching the surface of what it can offer. As government initiatives like the Inflation Reduction Act prioritize green technology growth, we are witnessing a movement of innovation that inspires and propels the renewable energy industry forward. While solar panels are often the first thing that comes to mind when we think of renewable energy, the pairing of solar panels with energy storage systems (ESS) provides an even more impactful solution for homeowners. Battery storage is the key to addressing the current energy landscape and offers a long-term sustainable solution for homeowners.


Addressing Rising Energy Costs with ESS


Energy costs continue to rise, with average electricity prices increasing by 14.3 percent last year. In some areas, homeowners may have even experienced a staggering 17 percent increase in energy bills. Energy storage systems allow homeowners to minimize the impact of these price surges by saving the energy generated from the sun for when it is needed most. With an ESS, a home can run on solar energy even when the sun isn't shining. Excess solar power produced during periods of high sunshine, such as the summer months, is stored in the battery, allowing homeowners to use their stored energy during peak-rate evening hours. This not only provides energy freedom for homeowners but also reduces reliance on the grid, which is becoming increasingly expensive.


Maximizing Solar ROI and Energy Usage  


Net energy metering (NEM) is a policy in over 40 states that allows homeowners to sell excess electricity generated by their solar panels back to the grid. However, many states are now implementing restrictions on how much homeowners are paid for this excess energy. For example, California's recent net metering ruling has slashed prices by nearly 60 percent and promoted time-of-use pricing structures. To maximize the return on solar investment in these conditions, homeowners must store excess solar energy when it is abundant. As similar measures are adopted across the country, homeowners will have an even greater need to shape their energy usage to reduce utility costs and optimize their solar investment.


The Vulnerabilities of an Outdated Energy Grid  


The American energy grid is not only outdated but also expensive, with approximately 70 percent of it being more than 25 years old. This outdated infrastructure creates vulnerabilities that result in frequent blackouts, especially during severe weather events. As climate change leads to more extreme weather, these blackouts are becoming harder to resolve. The traditional energy grid is ill-equipped to handle these evolving challenges, making it imperative for homeowners to take control of powering their own homes.  


Pairing solar panels with an energy storage system (ESS) is a powerful solution for homeowners seeking energy independence. By storing excess energy generated by their solar panels, homeowners can rely on the backup energy stored in the battery during blackouts. This effectively behaves as a generator, allowing them to power their homes without relying on the grid. It is important to note that during power outages, rooftop solar systems alone are designed to shut down for safety reasons. Simply having solar panels does not guarantee power during an outage.     

An energy management system with storage provides a simple solution to avoid this pitfall. By separating the solar panels and battery from the main panel and the grid, homeowners can ensure safety and control. Even during a grid outage, the solar panels paired with battery storage remain operational, providing power day and night. This setup allows homeowners to avoid the impacts of blackouts and weather events while maintaining control over their energy supply. 


Government Incentives Encouraging Renewable Energy Solutions    


The Inflation Reduction Act (IRA) has introduced new sustainable-focused incentives to encourage Americans to switch to renewable energy solutions. Battery and energy storage technologies are now eligible expenditures under the IRA, with the tax credit increased from 26 percent to 30 percent of the battery cost. Additionally, retrofitting previously installed solar panels with an ESS-only project qualifies for the incentive, which was not previously the case. The federal government's increase in the tax credit ratio aims to promote the adoption of residential energy storage.   


California's Incentive Programs are leading the way. California is at the forefront of incentivizing homeowners to adopt ESS through its Self-Generation Incentive Program (SGIP). Offering approximately $250/kWh for a home battery purchase, SGIP covers around 25 percent of the average energy storage system cost. Despite the recent implementation of California's NEM 3.0, which decreases the savings for rooftop solar users by 60 percent compared to the NEM 2.0 program, the IRA battery incentive and SGIP still provide substantial savings for homeowners when they pair solar with ESS. This ultimately leads to a favorable return on investment. 


While adding solar panels and ESS does require an upfront investment, over time, it proves to be cost-effective. As renewable energy technology advances, the cost savings and benefits are expected to become even more significant. Homeowners who embrace solar and energy storage solutions can enjoy long-term savings and a reliable power source while supporting a sustainable future.

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