Different electricity tariffs significantly impact the savings achieved through battery storage systems. Here are the key points to consider:
Impact of Electricity Tariffs on Battery Storage Savings
Time-of-Use Tariffs
- Cost Savings Mechanism: Time-of-use tariffs offer cheaper electricity rates during off-peak hours, typically overnight, allowing homeowners to charge their batteries at these lower rates. The stored energy is then used during peak hours when prices are higher, thus reducing overall energy costs.
- Example Savings: For instance, in the UK, off-peak rates might be around 9p/kWh compared to peak rates of 24.5p/kWh. Charging a battery during off-peak hours and using it during peak times can lead to significant annual savings.
Flat Rate Tariffs
- Limited Savings: Under flat rate tariffs, the electricity price remains constant throughout the day, which limits the potential for cost savings with battery storage. Without variable pricing, there’s no incentive to store energy during “cheap” periods to use during “expensive” periods.
Presence of Demand Charges
- Peak Demand Control: Some tariffs include demand charges based on the highest hourly energy use. Batteries can be used to reduce peak demand by supplying energy during these high-consumption periods, thereby lowering the demand charge component of the bill.
Factors Influencing Savings
- Energy Consumption Patterns: Homes with higher peak-hour consumption benefit more from battery storage as they can shift usage to off-peak hours.
- Battery Size and Efficiency: The capacity and efficiency of the battery influence how much energy can be stored and used effectively.
- Solar Integration: Combining battery storage with solar panels maximizes savings by storing excess solar energy for use during peak hours.
- Tariff Structure: The structure of the tariff, whether it includes time-of-use pricing or demand charges, affects how effectively battery storage can reduce bills.
In summary, savings from battery storage are most pronounced with tariffs that offer variable pricing schemes, such as time-of-use rates, as they allow homeowners to capitalize on the price differences between off-peak and peak hours.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-different-electricity-tariffs-impact-the-savings-from-battery-storage/
