Understanding the Basics of Home Energy Storage
What is Home Energy Storage?
A home energy storage system is essentially a battery that stores electricity for later use. The stored electricity can come from the grid during off-peak hours when electricity is cheaper. Or from renewable energy sources like solar panels. Home energy storage systems help in reducing reliance on the grid, lowering electricity bills, and providing backup power during outages.
Among the different types of batteries available. Lithium-ion batteries are the most popular choice for home energy storage due to their high Energy density, Longer lifespan, and Better efficiency compared to traditional lead-acid batteries.
Why Do Homes Need Energy Storage?
The primary reasons for installing a home energy storage system include:
- Lowering electricity costs: Households can store electricity during off-peak hours when rates are lower and use that stored energy during peak hours when rates are higher.
- Backup power: A home energy storage system can provide power during outages, ensuring critical devices and appliances continue to function.
- Energy independence: Homes with solar panels can store excess energy generated during the day and use it at night, reducing dependence on the grid.
- Environmental impact: By using stored renewable energy, households can reduce their carbon footprint.
Factors That Determine the Size of a Home Energy Storage System
Choosing the right battery size for your home energy storage system is not a one-size-fits-all decision. Several factors play into determining the appropriate battery capacity for your household. The following are the most critical considerations:
1. Household Energy Usage
The most important factor in determining the size of your home energy storage system is your household’s daily energy consumption. This information can typically be found on your monthly electricity bill. For example, if your household uses 600 kilowatt-hours (kWh) per month, your average daily usage would be approximately 20 kWh.
To estimate how much battery capacity you need, you should have a good understanding of your daily energy usage. A smaller household may only need a 5 to 10 kWh battery, while larger households with more appliances and electronics may need 15 to 30 kWh or more.
2. Battery Depth of Discharge (DoD)
Lithium-ion batteries are commonly used in home energy storage systems due to their high energy density and efficiency. One important metric to consider is the battery’s Depth of Discharge (DoD). DoD refers to the percentage of the battery’s capacity that can be used without significantly affecting its lifespan.
For instance, if a battery has a DoD of 90%, it means that you can use 90% of the battery’s total capacity before it needs to be recharged. A lithium-ion battery with a capacity of 10 kWh and a DoD of 90% will provide 9 kWh of usable energy. The higher the DoD, the more efficient the battery is, which can help you choose a slightly smaller battery without sacrificing usable capacity.
3. Backup Power Needs
Another factor to consider is whether you want your home energy storage system to provide backup power during outages. If so, you’ll need to determine how much power your household requires during a blackout.
For minimal backup, covering essentials like lighting, refrigeration, and internet routers, a small battery of around 5 to 10 kWh may be sufficient. However, if you need to power larger appliances such as air conditioners, heaters, or electric ovens, you’ll need a larger battery—probably in the range of 15 to 30 kWh or more.
For example, a refrigerator uses about 1 to 2 kWh per day, while an air conditioner might use 3 to 5 kWh per day. If you want to power both appliances for 24 hours during an outage, you would need at least 6 to 7 kWh of storage capacity, not including other appliances or devices.
4. Integration with Renewable Energy (Solar Power)
For homes with solar panels, the size of the home energy storage system should align with the amount of energy your solar system generates. Solar panels often generate more electricity during the day than a household can consume, and without a home energy storage system, the excess energy is
wasted or sent back to the grid. By having a home energy storage system in place, you can store that excess energy and use it when your solar panels are not producing electricity, such as at night or on cloudy days.
To calculate the appropriate battery size for your home with solar power, consider the following:
- Daily solar energy production: Look at how much energy your solar panels generate on an average day. If your panels produce 30 kWh per day, and your household consumes 20 kWh, you would theoretically have 10 kWh of excess energy that could be stored for later use.
- Nighttime energy usage: Determine how much energy your household uses at night when the solar panels aren’t producing electricity. If your home uses 10 kWh during the night, you would need a battery with at least 10 kWh of capacity to cover your nighttime energy consumption.
If your solar production is significantly higher than your energy usage. having a larger battery will allow you to store more of the excess energy. But if your solar system only produces slightly more energy than your household consumes, a smaller battery may be sufficient.
5. Utility and Grid Considerations
In some regions, utility companies offer time-of-use (TOU) pricing, where electricity rates vary depending on the time of day. Electricity is more expensive during peak hours and cheaper during off-peak hours. In these cases, a home energy storage system can save you money by allowing you to store electricity during off-peak times and use it during peak hours.
If you live in an area with TOU pricing, the size of your battery should be large enough to store enough energy to cover your peak-hour consumption. For example, if your household consumes 15 kWh during peak hours in the afternoon, you would need a battery with at least that much capacity to maximize savings.
In some areas, homeowners can also sell excess energy back to the grid through net metering programs, which can influence how large of a battery you need. If your utility company offers favorable rates for selling power back to the grid, you may not need a large battery. Instead, you could store just enough energy for your own use and sell the rest.
6. Future-Proofing
When considering the size of your home energy storage system, it’s also important to think about future energy needs. As technology evolves, households are likely to adopt more electric appliances, electric vehicles (EVs), and other energy-consuming products. If you plan to purchase an EV or add significant new loads to your home, such as electric heating or cooling systems, you should consider a larger battery to accommodate these future energy needs.
For instance, an electric vehicle can consume between 10 to 30 kWh just for a single charge, depending on the battery size and driving range. If you’re planning to charge your EV at home, you may need to increase your home energy storage capacity to support both your household’s energy needs and EV charging.
Common Battery Sizes for Home Energy Storage Systems
There are several standard battery sizes available for home energy storage systems, each suited to different household needs. Below are some common sizes and the types of homes they are best suited for:
1. Small Capacity Batteries (5 to 10 kWh)
These smaller batteries are ideal for:
- Small homes or apartments with low energy consumption.
- Homes that only need backup power for essential appliances during short outages.
- Households integrating solar power with the goal of using stored energy for nighttime consumption, but with limited overall energy needs.
Example: A 7 kWh battery might be enough to power a small home for one night or to provide backup power for essential devices like lights, a refrigerator, and a few electronics during an outage.
2. Medium Capacity Batteries (10 to 20 kWh)
These batteries are well-suited for:
- Average-sized homes with moderate energy consumption.
- Homes that want to store solar energy for both daytime and nighttime use.
- Households that need the battery to provide backup power for longer outages or to run more energy-intensive appliances like air conditioners or electric water heaters.
Example: A 15 kWh battery can power a medium-sized home for a full day, covering both daytime and nighttime needs, especially when paired with solar power.
3. Large Capacity Batteries (20 to 40 kWh or more)
These batteries are best for:
- Large homes with high energy consumption or homes with multiple energy-intensive appliances.
- Households that want to be fully self-sufficient during outages and run all appliances as normal.
- Homes with extensive solar panel installations that generate a large amount of excess electricity.
- Families that plan to charge electric vehicles using stored energy.
Example: A 30 kWh battery could power a large home for up to two days during an outage. Or to store enough solar energy to cover multiple days of nighttime consumption.