Lead-acid batteries, which are commonly used with solar panels, are only 80-90% efficient at storing energy, and their performance degrades with time.Īdditional perks of being grid-tied include access to backup power from the utility grid (in case your solar system stop generating electricity for one reason or another).
In other words, more electricity (and more money) goes to waste with conventional battery systems.Īccording to EIA data, national, annual electricity transmission and distribution losses average about 7% of the electricity that is transmitted in the United States. The electric power grid is in many ways also a battery, without the need for maintenance or replacements, and with much better efficiency rates. Energy storage typically comes with significant losses. However, it can be temporarily stored as other forms of energy (e.g. Many utility companies are committed to buying electricity from homeowners at the same rate as they sell it themselves.Įlectricity has to be spent in real time. Without it, residential solar systems would be much less feasible from a financial point of view. Net metering (or feed-in tariff schemes in some countries) play an important role in how solar power is incentivized. With net metering, homeowners can put this excess electricity onto the utility grid instead of storing it themselves with batteries. Your solar panels will often generate more electricity than what you are capable of consuming. Grid-tied solar systems are therefore generally cheaper and simpler to install.
Batteries, and other stand-alone equipment, are required for a fully functional off-grid solar system and add to costs as well as maintenance.
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