How Batteries Work

Before exploring the types of batteries and their functionalities, it's crucial to understand key battery terminology.

Backup Battery:

Backup batteries are designed with the primary purpose of providing electricity during a blackout. Additionally, they can be used daily and configured to store excess energy. However, they are not intended to support major loads like woodshops or large electrical appliances.

Non-Backup Battery:

In contrast, non-backup batteries are specifically designed to send excess power back to the grid during peak hours for maximizing energy credits. Unlike backup batteries, they do not provide electricity in the event of a blackout.

Backup Battery:

When considering backup battery options, these systems discharge and export power as needed. They offer electricity during a blackout or for daily use, depending on the configuration. The battery charges daily from your solar production, ensuring continuous power during a blackout. Without a battery, your power will go out even if your solar system is producing energy.

Partial Backup Battery:

For those considering partial backup battery options, these systems discharge and export power as needed. They can provide electricity during a blackout for a shorter period, making them suitable for users needing a smaller backup system.

Non-Backup Battery:

Non-backup batteries operate by exporting energy during peak times to maximize savings. They are typically more cost-effective compared to back-up batteries since they do not require the additional capacity to supply power during outages. They are suitable for homeowners who are primarily interested in reducing their electricity bills by maximizing the self-consumption of solar energy.

Purchasing:

Battery systems can be purchased outright with the system, financed as part of a solar system, or included in the solar lease/PPA. Check out our article here about the different types of Finance Options.

Additionally, there are financiers who offer specialized financing options specifically for batteries. This allows you to finance a battery system after installing a solar system.

Battery Tax Credits & Rebates:

Federal Tax Credit:

Customers across all states can qualify for the Solar Tax Credit (ITC) for battery installations, provided they have ownership of the system. You can learn more about the Federal Tax Credit in our Finance Options article.

Battery Rebates:

Some states may offer incentive programs specific to batteries. For example, California has the SGIP Program (Self Generation Incentive Program).