Three Reasons Why Utility Companies Want Homeowners to Have a Battery

February 2, 2021
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Energy storage has many benefits whether one is installed in a residence or at a business, so it’s no surprise that utility companies encourage people to have batteries. There are a few main factors that determine your energy bill: how much electricity you use, at which time you use it, and if there are any upgrades made to the distribution system. Having a battery can help reduce peak demand and the need for upgrades to the distribution system can be deterred. Here are three of the main reasons why electric companies encourage their customers to have batteries. 

Reduce the Impact on the Grid

One of the biggest concerns that utility companies have is that with more households adopting clean energy, it could change the time of day that most electricity is needed. This is because, at the end of the day when the sun sets, more electricity is required. This is why a lot of utility companies are moving to time of use rates. This makes electricity more expensive between 4 pm to 8 pm.

For households that have energy storage along with their solar panel systems, power is used from the battery instead of the grid at the time of peak hours where energy is at its most expensive. This is a main reason why utilities are encouraging households to have batteries, as it reduces the impact that the hours of extra solar power would have on the grid.

Reduce Peak Demand

Peak demand is the time when electricity usage is at its highest during any given day, month, or year. In warmer climates like California, peak demand happens during the summer when it’s the hottest because electric customers are running their air conditioners on high. Ensuring that peak demand is met is a bit of a challenge, which makes it costly to turn on power plants. 

Naturally, these extra costs eventually become the responsibility of the consumers. When the grid is running at its highest, homes with energy storage like batteries help reduce peak demand because less power is taken from the grid. This reduces the time that companies have to power the costliest plants. This saves money for the electric company, and then the savings are passed onto the customers. 

Provides Peace of Mind for Customers

Perhaps the biggest advantage of having energy storage like a battery provides peace of mind for consumers. In the event of an outage, backup power options like batteries can power an entire household for a limited amount of time. This is especially helpful for electric customers that live in areas with frequent weather issues, like wildfires and hurricanes. This also enables utilities to focus on parts of the grid where customers don’t have batteries if the grid does go down. The benefits of installing energy storage are vast, but the peace of mind that it provides customers is at the top.

Trust the Solar Panel Experts

If you have any questions about how your home can benefit from installing an energy storage system as well as your solar panels, we will be happy to answer them in a free consultation. Give the experts at All-In-One Energy a call today, we look forward to speaking with you.