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How to choose the right PV storage system to lower your energy bills

Date:2024-11-19

The integration of photovoltaic (PV) systems with energy storage units has become an effective solution for efficiently utilizing clean energy. This combination is gaining popularity across many countries, providing a reliable energy source and ensuring energy independence, and save your energy bills.

Key Types of PV + Storage Systems

1. Hybrid On/Off-Grid Energy Storage System

Combines grid-tied and off-grid functionality. During sunlight hours, solar power is used to supply electricity to loads and charge the battery. At night or during power outages, the battery supplies power. Components: Solar panels, hybrid inverter (on/off-grid), battery, and load.

  • Dual-mode operation (on-grid and off-grid).
  • Ideal for areas with frequent power outages or where electricity is more expensive than feed-in tariffs.
  • Suitable for peak-shaving applications, reducing electricity bills by using stored energy during high-rate periods.

Hybrid On/Off-Grid Energy Storage System

Hybrid On/Off-Grid Energy Storage System

2. Grid-Tied Energy Storage System

Enhances solar self-consumption. If solar production is lower than the load demand, both solar and grid power are used. If solar output exceeds load consumption, the excess energy is stored in batteries. Components: Solar panels, charge controller, battery, grid-tied inverter, current detection device, and load.

  • Integrates grid connection with energy storage.
  • Perfect for increasing the self-consumption ratio in homes or businesses with solar panels.

Grid-Tied Energy Storage System

Grid-Tied Energy Storage System

3. Hybrid Microgrid System

Converts locally generated renewable energy into electricity and supplies it directly to local loads. Components: Distributed power sources (solar, wind, etc.), loads, energy storage systems, and control devices.

  • Autonomous, self-managing system that can operate with or without grid connection.
  • Solves challenges related to integrating distributed energy resources into larger grids.

Hybrid Microgrid System

Hybrid Microgrid System

How to Choose:

  • For frequent outages: Hybrid On/Off-Grid is your best choice.
  • For lowering bills: Opt for a Grid-Tied System.
  • For complete independence: The Hybrid Microgrid System is ideal.

How Much Will You Save?

Choosing the right energy storage system can drastically reduce electricity bills and increase energy independence. Whether you‘re looking for a cost-effective solution to manage peak electricity prices or aiming for complete off-grid autonomy, the following examples are for your reference.

Example:

4.1 Peak-Hour Electricity Rates

Electricity providers charge higher rates during peak demand periods (late afternoon to early evening). These rates can be 2-3 times higher than off-peak hours. For example:

  • Peak-hour pricing: $0.30/kWh
  • Off-peak pricing: $0.10/kWh

If a household consumes 500 kWh monthly, where half of the usage falls during peak hours, the bill could be $120–$150 due to high rates.

Scenario Usage During Peak Hours Rate per kWh Monthly Cost
Without Storage 250 kWh $0.30 $75
With Storage 0 kWh (from solar) $0.30 $0

4.2 Tiered Electricity Rates

Tiered pricing means the more electricity you use, the higher the rate per kWh. For example:

  • First 200 kWh: $0.12/kWh
  • Above 200 kWh: $0.20/kWh

By using solar panels and storage, grid consumption can be minimized, keeping the majority of energy use within lower pricing tiers.

Scenario Consumption Rate Tier Monthly Bill
Without Solar 600 kWh $0.12 (200 kWh) + $0.20 (400 kWh) $104
With Solar 200 kWh $0.12 (all solar) $24

4.3 Seasonal Energy Use

Electricity usage spikes during summer and winter for cooling and heating, often doubling or tripling bills. With MOTOMA solar storage systems, households can store energy during longer summer days and use it at night or during winter, flattening seasonal price surges.

Monthly Savings with Solar Storage

Month Without Solar Storage ($) With Solar Storage ($) Savings ($)
January 180 130 50
March 140 110 30
June 240 180 60
August 250 190 60
November 200 150 50

3.4 ROI Based on Monthly Savings

Let‘s calculate the return on investment (ROI).

Residential Example:

A household installs a 6 kWh solar-plus-storage system costing $12,000. Annual savings are $1,500, thanks to reduced electricity bills from peak-hour and tiered-rate savings.

  • Investment: $12,000
  • Annual Savings: $1,500
  • Payback Period: 8 years
  • 20-Year Savings: $30,000

Commercial Example:

A business installs a 100 kWh system costing $140,000, saving $20,000 annually due to lower peak-hour charges and reduced tiered-rate costs.

  • Investment: $140,000
  • Annual Savings: $20,000
  • Payback Period: 7 years
  • 20-Year Savings: $400,000

By using energy storage to take advantage of lower off-peak rates, users can significantly cut electricity costs.

PV + energy storage systems are becoming a key solution to optimize self-sufficiency, reliability, and cost savings for residential electricity use. With rising electricity demand, peak-time charges, and increased reliance on electric devices, more households are expected to turn to these systems as a way to control their energy expenses and improve sustainability.