PG&E recently became California’s most expensive electricity provider after implementing a 13% rate increase in January. NBC Los Angeles reports that this latest price hike is expected to increase the average family’s electric bill by a staggering $33 a month, and more increases are anticipated that could add another $14 a month to the average customer’s bills.
If you’re shaking your head, you’re not alone. As frustration with PG&E rises, more and more Californians are turning toward solar PV with battery storage as a solution that frees them from the utility’s clutches and helps them avoid rate increases.
What Is a Solar Battery & How Do They Work?
A solar battery is an optional addition to a home solar panel system. They work by storing the excess electricity your solar panels generate during the day when the sun is shining. When there is no sunlight—at night or on a cloudy day—the stored energy can be used to power your home. Solar batteries can also be used for backup power during a grid outage. But backup power isn’t the only benefit of a solar battery. When paired with solar panels, they can be used to strategically avoid on-peak electricity rates and save you money on your electric bills.
How Do Solar Batteries Save Money?
Solar batteries save you money in two ways. First, they allow you to use more of the electricity your solar panels generate so you can buy even less power from your electricity provider. Secondly, they allow you to strategically avoid on-peak utility rates.
Use More of the Electricity You Produce
Solar panels produce the most electricity in the middle of the day, but they can’t store the excess energy they produce. Before Net Energy Metering (NEM) 3.0 was passed in California, you could “sell” the excess power you generated to PG&E and be credited for the full retail rate. You would then be able to use your credit to buy electricity from PG&E when your solar panels were not generating power.
Unfortunately, California changed its net metering policies when it passed NEM 3.0 and significantly reduced the rate at which solar customers are credited for the power they send to the grid. With a solar battery, you can store your excess electricity and use it yourself instead of exporting it to the grid for a meager credit.
Avoid Expensive, On-Peak Electricity Rates
Solar batteries also help you avoid on-peak electricity rates. All PG&E solar customers are required to be on a time-of-use (TOU) plan under NEM 3.0. Under a TOU electricity plan, rates fluctuate depending on the time of day. During on-peak hours (4-9 pm) electricity rates are higher due to increased demand. This is also around the time solar production begins to drop as the sun goes down. With a battery, you can use stored energy to power your home during on-peak hours, avoiding the higher rates.
Find a Solar & Battery Installer Near You in California
Whether you already have solar panels and are ready to add a battery or you want to install a new solar plus battery system, the Clean Energy Connection can help you find a qualified installer. Our free, online directory connects California homeowners with reputable clean energy companies that have been carefully vetted to ensure they provide the best possible service. The directory is designed to promote the highest-quality and most reputable clean energy contractors in California. Contractors don’t pay to be listed and we have no stake in who you choose—it’s all about connecting you with the best solar installers for your clean energy upgrade.