A Guide to Solar Plus Storage

Solar plus storage systems are transforming the clean energy landscape by pairing solar panels with battery energy storage, ensuring a reliable and efficient power supply. A solar plus battery system allows homeowners and businesses to store excess solar energy generated during the day for use at night or during cloudy weather, reducing reliance on the grid and maximizing self-consumption.

Since solar power is an intermittent energy source, integrating solar plus storage technology is crucial for maintaining a steady electricity supply. By offering solar plus storage options, you can expand your business, increase revenue, and provide customers with greater energy independence and resilience.

What Is Solar Plus Storage?

A solar plus storage system combines solar panels for electricity generation with battery energy storage, allowing excess energy to be stored for later use. This setup ensures greater energy independence and grid resilience.

Without storage, most solar power systems shut down during grid outages. A solar plus battery system enables continued operation, providing backup power and maximizing self-consumption of solar energy.

How Solar Plus Storage Works

A solar plus storage system integrates solar panels with battery storage, creating a reliable and efficient energy solution. Here’s how these systems operate:

Solar Energy Generation

Solar energy generation begins with solar panels installed on rooftops or ground mounts. These panels capture sunlight and convert it into direct current (DC) electricity using photovoltaic (PV) cells.

Converting the Solar Energy

Once generated, the DC electricity flows to an inverter, which converts it into alternating current (AC) electricity for use in homes and businesses. Some solar plus battery systems use hybrid inverters that manage both solar generation and battery storage.

Energy Use & Storage

During peak sunlight hours, the converted AC electricity powers appliances, while excess energy is stored in solar batteries. This stored energy can be used at night, on cloudy days, or during power outages.

Energy Management

Many solar plus storage systems feature intelligent energy management. These systems monitor energy production, battery levels, and consumption, optimizing when to store or use energy. Advanced setups can also integrate demand response and load-shifting capabilities.

Grid Independence and Backup

A solar plus storage system can be configured for either grid-connected or off-grid operation. In a grid-tied system, excess solar energy can be sent to the grid, often earning net metering credits. Off-grid systems, or those with backup configurations, ensure critical loads remain powered during grid failures.

Discharge and Load Management

When solar generation is low, stored battery power supplies the home. Some solar plus storage systems use time-of-use (TOU) optimization, drawing from batteries during peak-rate hours to reduce electricity costs. This enhances savings while improving energy resilience.

NMC Vs. LFP Solar Plus Battery Storage

When it comes to solar plus storage systems, two of the most common lithium-ion batteries are lithium nickel manganese cobalt oxide (NMC) and lithium iron phosphate (LFP). Both offer advantages depending on the application, but each has distinct characteristics.

Manufacturers like Tesla, LG Chem, SimpliPhi, Blue Planet, Enphase, and Sonnen provide these battery solutions for solar energy systems. Compared to lead-acid batteries, lithium-ion options are preferred in the solar industry due to their longer lifespan, higher efficiency, and lower maintenance requirements.

Comparing NMC and LFP Solar Plus Storage

Feature	NMC Batteries	LFP Batteries
Battery Composition	Nickel Manganese Cobalt (NMC)	Lithium Iron Phosphate (LFP)
Energy Density	Higher energy density, offering compact designs for higher storage in a smaller space	Slightly lower energy density, requiring larger battery sizes for the same storage capacity but still effective in solar plus battery systems
Cycle Life	Moderate cycle life (typically 500-1000 cycles), making them suitable for short-to-medium-term solar plus storage needs	Long cycle life (often exceeding 2000 cycles), offering excellent longevity for solar plus storage systems aimed at long-term energy independence
Solar Battery Safety	Generally good safety but can be more susceptible to thermal runaway under certain conditions	High safety profile with less risk of thermal runaway, making LFP batteries ideal for safe solar energy storage solutions in residential and commercial setups
Cost	More affordable upfront compared to LFP batteries, ideal for those seeking an economical solar plus battery system	Initially higher upfront cost, but lower total cost of ownership over the lifespan
Temperature Sensitivity	Can be more sensitive to high temperatures, which may affect performance in solar plus battery systems in extreme climates	Performs better across a wide range of temperatures, making LFP batteries suitable for energy storage systems in diverse environments
Battery Charging Efficiency	Good efficiency but less optimal in extreme conditions, affecting performance	High charging efficiency, ensuring the solar batteries are as effective as possible
Use Applications	Popular in electric vehicles (EVs) and grid storage, as well as solar plus storage systems where high energy density is a priority	Commonly used in stationary energy storage systems, power banks, and some electric vehicles

Types Of Solar Plus Storage

There are two main types of solar power systems with battery storage, depending on their setup with the utility company.

Grid-Tied Solar Plus Storage Systems

A solar plus storage system that is grid-tied allows for a flexible energy setup, where the solar panels generate power during the day, and excess energy can either be stored in the battery or sent back to the grid. At night or during cloudy days, homeowners can use the stored energy from the batteries or, if necessary, draw power from the electric grid.

These solar plus storage systems are commonly referred to as hybrid solar systems because they combine the benefits of solar power, battery storage, and grid connection. They are widely used in both residential and commercial settings, providing the advantage of backup power while remaining connected to the grid.

Off-Grid Solar Plus Battery Systems

Off-grid solar energy systems are not connected to the electric grid and are entirely self-sufficient. These systems require significant energy production and storage capabilities to meet all power demands, especially during periods of low sunlight or at night. As such, off-grid systems must be designed with larger solar arrays and high-capacity solar plus storage systems to ensure adequate energy production and storage.

These systems are often deployed in remote areas or rural locations where extending the grid would be cost-prohibitive. In addition to the solar panels and batteries, a backup generator may be used to provide additional power during extended cloudy periods.

Off-grid systems are sized differently than grid-tied systems. They must be robust enough to meet energy needs without any external power source, necessitating a careful balance between energy production and storage.

Why Is Solar Battery Storage So Popular?

As solar battery technology advances and prices fall, solar plus storage is increasingly appealing to a broader audience. What might have been unaffordable to many households just 5 or 10 years ago is now feasible. As battery capabilities grow, they are becoming more attractive than a backup generator in many markets. In states without net metering laws, batteries enable homeowners to store energy instead of receiving credits on their electric bills.

Also, some recent high-profile power outages have heightened concerns among home and business owners about the power grid’s reliability. In 2024, widespread power outages in California due to wildfires and extreme weather led to public safety power shutoffs, affecting thousands of homes. Similarly, winter storms in Texas in early 2024 caused power disruptions, reminding many of the 2021 power crisis that left 4.5 million households without electricity.

With climate-related events on the rise and the ongoing concerns over grid vulnerabilities, many homeowners are increasingly looking to solar plus storage systems for energy security. Understanding your customers’ concerns and needs makes it easier to design and sell a solar plus storage system that will meet their expectations for resilience and self-sufficiency.

Benefits Of Solar Plus Storage

Incorporating energy storage into solar power systems offers several benefits to customers, though some advantages may vary depending on local programs, utility offerings, and state incentives.

Energy Security

Solar plus storage systems provide energy security by allowing homes and businesses to remain operational during power outages. When the grid goes down, these systems can rely on stored energy to power critical loads, preventing disruptions and reducing the risk of property damage.

For businesses, solar plus battery systems can minimize downtime and maintain productivity during blackouts. As an installer, it’s important to help customers prioritize critical loads to maximize the value of their solar plus storage systems while adhering to system design limitations.

Time-Of-Use Rates & Energy Bill Savings

Many utility companies offer time-of-use rates, meaning customers pay higher rates for electricity during periods of peak demand. By integrating a solar plus battery system, customers can store energy during lower-cost periods and use the stored energy during peak times, reducing their energy costs. This strategy can help lower monthly utility bills and optimize the economic benefits of solar plus storage systems.

Energy Storage In Areas Without Net Metering

In states without net metering programs, like Hawaii, solar system owners cannot receive compensation from the utility for excess energy fed back into the grid. In such areas, solar plus storage systems become even more valuable, as they allow owners to store surplus energy for later use instead of relying on grid credits. This capability ensures that the energy produced by the solar panels can be fully utilized, providing savings and maximizing the efficiency of the system without the need for external compensation.

Solar Plus Storage Incentives And Programs

It’s relatively costly to add energy storage capabilities to a solar array. Thankfully, government incentives can reduce the total system cost, boosting the project’s return on investment. In many cases, these programs make a project financially viable when it might not have been otherwise.

Self-Generation Incentive Program (SGIP)

The new California Public Utility Commission (CPUC) program is available for both residential and non-residential projects and is intended to boost emergency preparedness with backup power. This battery rebate program can dramatically reduce the cost of installing solar power storage. The SGIP has two categories that determine the dollar value of the eligible rebate. In some cases, the CPUC rebate covers nearly 100% of the cost of the battery bank.

When installing battery storage systems in California, it’s critical to determine if your potential customer qualifies for this solar plus storage incentive. Meeting the program requirements can significantly boost the chance of making a sale.

Federal Investment Tax Credit for Solar Plus Storage

The federal solar tax credit, also known as the investment tax credit (ITC), applies to solar systems with batteries. The tax credit is a percentage of the total system cost. Thus, solar systems with batteries can qualify for a larger tax credit because the additional cost of the batteries increases the total system cost. The tax credit is currently in effect at 30% through the end of 2032 and then will decrease to 26% for systems installed in 2033.

State-Level Solar Battery Incentive Programs

Some states, especially in the Northeast, have programs that reduce the net cost of installing battery storage systems. In some cases, installers must be approved contractors for their customers to qualify for an incentive.

• The Maryland Energy Storage Income Tax Credit enables residential and commercial taxpayers to benefit from installing energy storage capacity with an income tax credit.

• The Solar Massachusetts Renewable Target (SMART) Program has an adder for solar systems with battery storage. Eligible residential customers can earn payments of hundreds of dollars a year or thousands of dollars over 10 years. Commercial customers can earn payments for 20 years. The value of the incentive depends on the size of the solar system and the battery’s energy capacity.

• The Oregon Solar Plus Storage Rebate Program provides up to $2,500 in rebates for installing a solar battery through the Oregon Department of Energy.
  

Solar Battery Warranties

Most solar battery manufacturers offer product warranties. An end-of-warranty capacity rating guarantees that the battery bank will hold a certain percentage of the original capacity for the warranty period. A throughput warranty relates to the total energy the battery is expected to deliver throughout its life and is measured in megawatt-hours (MWh) for residential projects. The throughput warranty is intact until the solar storage system has provided that amount of electricity.

The Future of Solar Plus Storage Technology

The future of solar plus storage technology is set to transform the clean energy landscape industry. Innovations in battery technology, such as higher energy density and the development of solid-state batteries, will make solar plus storage systems more efficient and compact. These advanced solar batteries promise increased safety and longer lifespans, reducing the risks associated with traditional lithium-ion batteries.

As production scales and technology advances, the costs of solar plus storage systems are expected to decrease, making them more accessible to consumers. Also, integrating these systems with smart grids will enhance energy flexibility, allowing for dynamic management of energy supply and demand. This enables aggregated solar plus storage systems to function as virtual power plants, providing crucial services like frequency regulation and peak shaving to stabilize the grid.

Artificial intelligence will be vital in optimizing energy storage and consumption, predicting energy generation based on weather patterns, and adjusting loads for maximum efficiency. Predictive maintenance powered by AI will also help identify issues early, minimizing downtime and solar maintenance costs.

Sustainability will be a priority for solar plus storage, focusing on eco-friendly battery materials and improved recycling programs that promote a circular economy. Government incentives, such as tax credits and rebates, will further encourage the adoption of solar plus storage solutions. Comprehensive regulatory frameworks will support the safe integration of these systems into existing energy infrastructures.

Is Solar Plus Storage Worth It?

Lower equipment costs and increased storage capabilities have made solar batteries more appealing than ever before and one of the fastest-growing segments in the solar PV industry. When available, time-of-use pricing from the utility and government incentives boost the returns customers will enjoy. As the solar battery storage market expands, solar installers have an exceptional opportunity to upsell customers by adding storage.

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