What Is A Consumption-only Battery?

If you haven’t heard the news already, California’s new net metering bill – termed NEM 3.0 – went into effect on April 14, 2023. The new policy has introduced many changes that will affect the value of solar energy and has many homeowners wondering “is solar worth it?” If you’ve requested a solar installation quote in the past few months, your installer might have recommended something called a “consumption-only battery.” This is a crucial element to any residential solar system and will help you maximize your savings under the current NEM 3.0 policy. In this blog post, we will explain what consumption-only battery means, how it’s different from backup battery, and how it makes solar “worth it” under NEM 3.0.

What does consumption-only battery mean?

“Consumption-only” is a term that is used to describe a new, more affordable, way to use solar battery storage and maximize savings under NEM 3.0. To put it simply, consumption-only batteries — also known as non backup batteries — only store enough energy to power a home. They do not store backup power.  The term “consumption-only” comes from the fact that the battery will only hold as much power as the average home consumes and does not send excess power back to the grid.

Why is consumption-only battery attractive under NEM 3.0?

Under NEM 2.0, solar customers were able to sell the excess energy produced by their solar system back to the utility company in exchange for credits on their next utility bill. However, California NEM 3.0 reduced solar export rates by about 75% across the board. Now it makes more sense for homeowners to store and use their excess energy rather than sending it back to the grid. This is where consumption-only batteries come into play. Using a feature called “load shifting,” consumption-only batteries are able to store energy that is produced during the day for consumption at night. This is a crucial feature under NEM 3.0 that most solar customers will want to take advantage of to increase the value of their investment.

Consumption-only Battery vs. Backup Battery

All batteries come with the load shifting feature. But until NEM 3.0, most batteries were used as a source of backup power. But since traditional backup batteries are expensive to install and create a barrier to the technology, manufacturers have started to offer consumption-only batteries as a more affordable option. If you’re wondering what the key differences between the two options are, here are some things to consider:

• Backup batteries can store energy for use during grid outages
• Backup batteries require extra labor and equipment to install, which drives up the price. 
• Consumption-only batteries do not provide protection against grid outages
• Consumption-only batteries cost significantly less to install

Is consumption-only battery right for you?

NEM 3.0 already represents a shift of value away from the solar-only market. As a new solar owner, you are incentivized or even advised to incorporate the use of solar battery storage into your systems from now on. But you may still be confused as to whether consumption-only is the best option, or if you should opt for a full installation with backup capabilities. Here are some things to keep in mind:

• If you only want to save on your monthly energy bills and maximize your savings with solar, consumption-only is the way to go.
• If you want protection against grid outages, then backup batteries are the best option.

You can add backup capabilities to a consumption-only battery later on, but it will be more expensive than installing a backup battery from the very beginning.

Find An Experienced Battery Installer

Under NEM 3.0, battery storage has become nearly essential for any homeowner interested in going solar. As you search for a reliable solar installation company, make sure that whoever you choose is also a battery expert.  Solar Optimum is an Enphase Platinum Installer with deep experience with Enphase products. We can install the Enphase 10T as a consumption-only or a full backup battery. Contact one of our Energy Experts today to learn more.