5 Reasons to Install a Consumption-Only Battery

5 Reasons to Install a Consumption-Only Battery With Solar Panels

Most of the energy your solar panels produce throughout the day is not needed right away. Where you send your excess solar energy can have a major impact on the value of your power, and that’s where a consumption-only battery comes in handy. 

Consumption-only batteries are a somewhat new take on solar battery storage that can help you save big depending on your situation. Read on for five reasons why a consumption-only battery can be a great addition to your solar system. 

What Is a Consumption-Only Battery?

A consumption-only battery allows you to store and use excess solar energy at a later time, boosting efficiency and maximizing savings. Unlike a backup battery, a consumption-only battery only stores enough energy to power a home; it doesn’t store backup power or send any power back to the grid. 

Benefits of a Consumption-Only Battery

1. It’s eligible for the 30% federal tax credit

Since battery storage is covered under the federal solar tax credit (also called the investment tax credit), you can get 30% of the price of your battery back in the form of a federal tax credit. 

2. It’s cheaper than a backup battery

A consumption-only battery can be offered at a substantially lower cost since it doesn’t require the extensive labor and materials needed for a power backup. Plus, the battery’s capacity is typically smaller than a backup battery, making it cheaper and simpler to install.

3. It protects you from future changes in net metering

Since consumption-only batteries store your excess energy rather than sending it to the grid, you won’t need to participate in net metering with your utility provider. While some states offer favorable net metering policies, this can always change — and not for the better. With a consumption-only battery, you won’t be affected if, for example, your utility provider slashes its solar net metering rate in half.

4. It’s more relevant after NEM 3.0

Under California’s NEM 2.0 policy, the difference between off-peak and on-peak rates was not particularly high, so even though consumption-only batteries would generate additional savings, they weren’t significant. 

It’s a different story under NEM 3.0. The policy reduced the value of surplus power sent to the grid in the middle of the day by about 75% compared to NEM 2.0 levels. This makes the stored energy more valuable and allows the battery systems to generate far higher returns.

5. Energy Independence

By storing excess energy generated by solar panels during the day, you can utilize the stored energy during periods of low solar generation or in the evening, reducing your reliance on the grid. This allows you to become more self-sufficient and offers a sense of control over energy consumption.

The Bottom Line

In short, consumption-only batteries offer a multitude of benefits to homeowners looking to save on power and become more energy independent. As the clean energy industry continues to grow, batteries are poised to play a significant role in maximizing the potential of solar power and shielding homeowners from rising energy costs and changing net metering policies.

Want to learn more about getting a consumption-only battery with your solar panels? Download our battery buyer’s guide today, or contact us to learn more about our solar battery storage solutions.