When we talk about batteries, we often assume that they should be paired with a solar system. What if you can’t install solar panels? Does it ever make sense to get home battery storage without solar? Let’s explore the topic.
Whereas customers would charge a battery from solar PV, a standalone battery is charged from the grid. But what’s the point of investing in a home battery that just draws from the grid? Doesn’t this defeat the purpose of becoming energy-independent?
Customers can only benefit from standalone battery storage without solar if they are on a time-of-use (TOU) electricity tariff. TOU tariffs offer customers different electricity prices, depending on the time of day. Some dynamic or ‘smart’ TOU tariffs are also priced according to how the electric system of your house is set up. For instance, if you have a solar system and solar production is high, the price of electricity per unit decreases.
Here’s how it works. Customers can charge their batteries during off-peak hours when electricity is cheaper. These may fall overnight, sometime between the hours of 10 p.m. to 6 a.m. Customers can then discharge their battery during peak hours when electricity is more expensive. These usually fall in the evenings when electricity demand is at its highest.
This routine helps customers cut electricity bills by effectively avoiding expensive peak electricity charges. In addition, it can also help reduce strain on the grid during peak hours. With the increasing use of time-variable renewables – such as solar and wind energy – this could prevent grid operators from resorting to burning fossil fuels to keep the lights on when demand is at its highest.
Let’s look at the uptake of TOU electricity tariffs to understand the lack of awareness about standalone battery storage without solar. Only around 4% of American billpayers were on a TOU tariff in 2018, according to research by the Florence School of Regulation (FSR). FSR goes on to state that “some 15% of American households will be on TOU rates” in the years to come. The latest available figures suggest the number is about half of this. According to the Energy Information Administration (EIA), 63% of American billpayers had the option of a TOU rate plan, as of 2022. However, only 7.3% were enrolled.
Why so few? The answer most likely comes down to convenience. After all, taking advantage of cheaper off-peak TOU rates means homeowners have to use energy-hungry appliances at off-peak hours. It’s simply not realistic for households to do their laundry, cook their meals or sit in their hot tub at 3 a.m. Besides, the part of utilities that offer TOU tariffs is small — it only reached 14% in 2019, according to a report by Brattle.
Standalone battery storage could help the uptake of TOU rates. By charging from the grid during off-peak hours, customers can store cheap energy. Then, when peak hours roll around, customers can discharge the battery to power household devices. Standalone battery storage can empower customers to take advantage of cheaper rates, without the inconvenience of having to think about when to use electricity.
It would be wrong to look only at how a battery benefits you with a TOU electric plan. After all, its primary role is to keep your house powered when the grid fails. In this case, battery is not something that earns you money but instead increases the comfort level of your house. The size of the battery bank and the setup depends on the needs of your house and the average duration of outages in your area. Read our article about the best solar batteries in 2024.
Batteries can be used both for convenience and to reduce your bills. You can charge the battery when rates are low and discharge it to the grid when rates are high to get the most out of the battery. Whether it's profitable depends on the country, its electricity rates, policies and regulations. Many people get batteries simply to rely less on the grid: if there's a power outage, people still have energy to use and to keep the house warm and comfortable.
It’s always better to generate and store your own renewable energy than draw from the grid. With this in mind, solar PV panels plus battery storage is the ideal choice for consumers. It’s worth noting that battery storage can also be coupled with other renewable technology, including wind turbines for home, and home hydro turbine generators. But given that solar PV tends to be the most affordable and scalable renewable tech, it’s usually the best option.
When a solar PV installation is not an option, home battery storage without solar can be a viable alternative. It works well when the upfront cost of a solar system is too high, the property does not have any space for solar panels or you need an uninterrupted power supply badly. Bear in mind that if customers opt for standalone battery storage, it’s possible to retrofit solar PV panels later on, should circumstances change.
Home battery storage without solar can bring benefits to customers on TOU electricity tariffs and provide uninterrupted power supply. Standalone battery storage can make TOU tariffs more convenient. Solar PV installation plus battery storage is the ideal choice for consumers. However, where solar is not available – for financial, practical, or other reasons – standalone battery storage can be a viable alternative.
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Dave is the UK Managing Director at energy storage specialist GivEnergy. He has previously worked as Group Supply Chain Director at a major UK distributor of renewable technology products.
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