The Future of Solar Energy: Battery Storage and Its Role in Sustainability
By now, you may have heard about the Inflation Reduction Act, signed into law in August 2022. This act is the most progressive action against climate change in American history, setting aside $369 billion for energy and climate change concerns out of a $430 billion package. The Residential Clean Energy Credit included in the Act will subtract 30% of the cost of installing solar heating, electricity generation, and other solar products from federal taxes. This credit will be available to taxpayers through 2032, so homeowners have plenty of time to consider their solar installation options.
Some of the most interesting provisions of the Inflation Reduction Act include the extension of solar tax credits and other incentives for solar equipment installation.
But what about battery storage?
At a basic level, battery storage for solar works a lot like everyday batteries that power your TV remote or smoke detector. They store energy for later use. Here’s how solar batteries work with your solar system: your solar panels generate electricity from the sun, and the direct current (DC) electricity is inverted and generates alternating current (AC) electricity, which can then be used by your home appliances. Any unused electricity is used to charge your batteries, and when the sun goes down, the energy stored in your batteries is used to power your home appliances.
Having battery storage can ensure that your appliances stay running on cloudy days, dark nights, and even when the power is out in the rest of the neighborhood. For some homes, it may not be absolutely necessary, making it an additional start-up cost on a project that may already feel expensive. In fact, most homes are not currently using battery storage. Homes without battery storage can pull from the local utility grid, where excess energy from the local community is sent and stored. However, battery storage is more reliable and can contribute to savings in the long run, especially with the Inflation Reduction Act.
Battery storage is a qualified battery storage technology expenditure covered under the Residential Clean Energy Credit in the Inflation Reduction Act. Battery storage is qualified if it is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer and has a capacity of not less than 3 kilowatt-hours. In simple-to-understand terms, this means that your solar batteries will be eligible as long as they are used at your residence and have a minimum 3 kWh capacity. Most homes with residential solar systems have a capacity of 6 to 12 kWh, so meeting both of those requirements to be eligible for the tax credit won’t be a problem.
The Residential Clean Energy Credit can apply to your solar panel and solar battery purchases made in 2022. While the previous Investment Tax Credit only offered a 26% reduction in tax liability for 2022, the Residential Clean Energy Credit increased the savings to 30%. Claiming the higher amount will help you save the most money on your taxes.
In conclusion, battery storage is revolutionizing solar energy and the Inflation Reduction Act is making it easier and more affordable for homeowners to make the switch to solar. With the added benefits of the Residential Clean Energy Credit, now is the perfect time to consider adding solar panels and battery storage to your home. At Helio GreenTech, we are your local Kansas City solar.
Is Battery Storage for Solar Worth the Investment?
This article explores whether investing in battery storage for solar energy is financially viable and environmentally responsible. It examines the impact of batteries on the returns on investment for homeowners in Missouri and Kansas and compares the environmental impacts of Tesla and Enphase batteries. It also discusses the ethical and environmental implications of using cobalt in batteries and highlights upcoming technologies in home storage. The article concludes by stating that while there are some situations where battery storage may be beneficial, most homeowners do not see enough value to justify the high cost.
One of the main advantages of battery storage is that it allows homeowners to store excess solar energy generated during the day and use it at night when solar panels are not producing energy. This can significantly reduce the need for grid power and result in savings on electricity bills. Though with programs like net metering offered by companies like Evergy, Ameren, and Independence Power and Light (IPL) batteries aren’t necesary to solar. Your power company will act like a battery bank for solar customers, storing up extra power produced by a solar system to be used later on. This won’t provide backup power in the event of a power outage, but it will help maximize a return on investment in solar while at the same time helping reduce a carbon footprint. So homeowners can save both kinds of green when they go solar.
Batteries may reduce the returns on investments when going solar in Missouri or Kansas the results depend on various factors such as electricity rates, the amount of solar energy generated, and the amount of energy used in the home. It is recommended that homeowners consult with a solar professional to determine if battery storage would be cost-effective for their specific situation.
Environmental Impact of Traditional Battery Storage
Another consideration when it comes to battery storage is the environmental impact. Batteries contain various chemicals and materials that can harm the environment through the mining and manufacturing processes of battery production. However, battery manufacturers are working to improve the environmental impact of their products by using more sustainable materials and designing batteries to be easily recyclable. Most batteries installed in a home are highly recyclable, with efforts to make them 100% recyclable.
Tesla and Enphase are two popular brands of batteries used for solar storage. Tesla batteries use cobalt, nickel, and aluminum, while Enphase batteries use lithium iron phosphate. Cobalt is primarily mined in the Democratic Republic of Congo, and there are concerns about the ethical and environmental impact of cobalt mining. There are serious efforts in the industry for both electric vehicle (EV) auto manufacturers, and solar home battery manufacturers to use more sustainable and ethically sourced materials that may even be more efficient at energy storage.
New technologies are emerging in the field of home storage, such as flow batteries and hydrogen fuel cells. These technologies have the potential to further reduce the cost and improve the sustainability of battery storage for solar energy.
Tesla's battery technology is designed with sustainability in mind, and the company has made significant efforts to develop a closed-loop battery recycling program to minimize waste and environmental impact. Tesla's batteries are made up of several components, including metals like nickel, cobalt, and lithium, which can all be recycled. Tesla's recycling process involves breaking down the batteries and extracting the valuable metals, which can then be used to make new batteries. The company claims that its recycling process recovers up to 80% of the materials in its batteries. Additionally, Tesla has been working on developing new battery technologies that use fewer rare and expensive materials, such as cobalt, which will make recycling even more efficient in the future. Overall, Tesla has shown a strong commitment to sustainability and minimizing its environmental impact, and its battery recycling program is just one example of these efforts.
Enphase Energy is a solar energy solutions provider that offers a range of battery storage solutions for residential and commercial solar systems. Enphase batteries use lithium iron phosphate (LiFePO4) chemistry, which is known for being safe, durable, and long-lasting.
When it comes to recyclability, Enphase claims that their batteries are fully recyclable, and they have developed a recycling program to ensure that their batteries are properly disposed of at the end of their life. The company partners with recycling facilities that are certified to handle lithium-ion batteries, and they work with these partners to ensure that their batteries are recycled in a responsible and environmentally-friendly manner.
Enphase batteries also have a modular design, which means that if one component of the battery fails, it can be replaced without having to replace the entire battery. This can help to extend the life of the battery and reduce waste.
Overall, Enphase batteries are designed to be safe, reliable, and environmentally-friendly. While no battery technology is 100% perfect, Enphase has taken steps to ensure that their batteries can be recycled at the end of their life, which is an important consideration for anyone who is looking to invest in a home battery storage system.
If you are going with a battery system Tesla certainly has it’s fanbase, especially in the auto industry. But for the efforts Enphase is making in the industry both on the manufacturing side as well as the recycling aspect of the battery industry we feel Enphase is a better choice. The price is very comparable between the two manufactures, while it’s a close finish the enphase battery is less expensive. Both batteries have a 10 year warranty and a great track record for backing their warranties. As both systems can be installed with and are commonly installed with enphase micro-inverters, we like the all in one easy monitoring and control that Enphase offers over Tesla and even though Tesla has a good design and fun app, we think Enphase takes the cake on this aspect as well making it the much easier and intuitive system for most homeowners. In our mind either battery is a good solution for customers going solar with a battery backup, though Enphase is our top pick winner between the two.
Our Top 5 Home Battery Companies For Backup on Your Solar System Other than Tesla and Enphase
As we have already covered Tesla and Enphase as our top choices for home backup here is a list of 5 battery manufacturers for residential solar energy other than Enphase and Tesla:
Generac: is a top choice in the industry, it’s best with their own inverter system and can easily be used with their generators. Generac is a US-based company that specializes in backup power systems, including residential energy storage systems. Their batteries are designed to work with solar panels and provide reliable backup power during outages.
Sonnen: Sonnen is a German company that specializes in residential energy storage systems. Their batteries are designed to work with solar panels and provide backup power during outages. They are known for their reliability and high performance.
SimpliPhi: SimpliPhi is a US-based company that produces lithium-iron-phosphate (LFP) batteries for residential and commercial applications. Their batteries are non-toxic and non-hazardous, have a long cycle life, and are designed to be easily recyclable.
Solark: Solark is a US-based company that produces lithium-iron-phosphate (LFP) batteries for residential and commercial applications. Their batteries have a high energy density, a long life span, and are designed to work seamlessly with solar panels.
LG Chem: While LG has recently pulled out of the solar panel industry, LG Chem remains a player in the battery industry. LG Chem is a South Korean company that is the largest manufacturer of lithium-ion batteries for residential energy storage systems. Their batteries have a high energy density, a long life span, and can be used for a variety of applications. Helio GreenTech does not have much experience with this battery system and is not currently offering installations for this battery.
These are just a few of the many battery manufacturers on the market, and each has its own unique features and benefits.
Bottom Line
While battery storage for solar energy has its advantages, it may not be cost-effective for all homeowners. Helio GreenTech, a solar installer based in Missouri, does not see the value in battery storage for most homeowners. However, there are some situations where battery storage may be recommended, such as homes located in areas with frequent power outages, medical concerns, tech companies, or homes with very high electricity rates. Ultimately, it is important for homeowners to consult with a solar energy professional to determine if battery storage is right for them.
