Energy storage commonly utilizes lithium-ion batteries, specifically those using the safest and longest-lasting chemistry known: Lithium Iron Phosphate (LFP). LFP batteries offer extended lifespans, capable of enduring up to 8,000 cycles with minimal degradation.

When paired with Solar PV systems, batteries provide three main functions:

  1. Backup: In the event of a grid outage, batteries offer a clean, quiet alternative to noisy and polluting generators.
  2. Peak Shaving and Self-Consumption: Batteries can help reduce costs associated with demand charges, often seen in commercial tariffs, or optimize self-consumption when net metering programs are unfavorable.
  3. Time-of-Use Arbitrage: By charging during periods of low utility rates and discharging during high-rate periods, batteries can enhance financial returns through strategic scheduling.