Energy Storage System
As of April 2023, the California Public Utilities Commission approved NEM 3.0, which promotes pairing solar with home battery storage. Major utility companies have also shifted NEM 1.0 and 2.0 customers to a 4 PM–9 PM Time-of-Use rate. A battery system not only provides backup during outages but also helps you avoid high utility rates by using stored solar energy during peak hours.
How Batteries Work?
A residential battery system stores electricity for later use, giving homeowners control over when and how they use energy. In California, where time-of-use (TOU) rates and power outages are common, batteries provide both cost savings and resiliency.
Charging the Battery
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The battery can charge from rooftop solar panels, the utility grid, or a combination of both.
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Smart software manages when charging occurs, often filling the battery during low-cost or solar production hours.
Powering The Home
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During expensive peak hours (typically 4–9 p.m.), the battery discharges to supply electricity to the home.
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This reduces reliance on the grid when rates are highest.
Backup Power During Outages
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If the grid goes down, the battery automatically provides power.
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Essential circuits—like lighting, Wi-Fi, refrigerator, and outlets—are connected to a critical loads panel.
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Depending on battery size, some systems can back up the entire home.
California-Specific Benefits
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TOU Bill Savings: Batteries shift energy use from low-cost times to expensive peak hours.
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Sustainability: Maximizes use of clean solar energy if paired with panels.
SGIP
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SGIP Incentives: The Self-Generation Incentive Program (SGIP) offers rebates that significantly lower battery costs, especially in wildfire-prone areas.
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Resiliency: Protects families from Public Safety Power Shutoffs (PSPS) and other outages.
