Key Takeaways

  • Time-of-use (TOU) tariffs reward shifting consumption to off-peak hours; peak vs. off-peak price gaps can be large enough to justify batteries.
  • A typical residential battery (10 kWh usable) can shift ~9 kWh/day after round-trip losses (about 90% efficiency), potentially saving $30–$60/month depending on price differentials.
  • Community/shared-solar often delivers steady bill credits but subject to program fees and enrollment caps; savings commonly range $5–$30/month for most subscribers.
  • Upfront battery costs vary widely; installed prices commonly run $400–$900 per kWh (so a 10 kWh system costs ~$4,000–$9,000) before incentives. Federal/state incentives (up to ~30% ITC under current programs) shorten payback.

What You Need to Know

Time-of-use tariffs set different rates by hour or block (for example, peak $0.25–$0.40/kWh and off-peak $0.08–$0.15/kWh in current market figures). The math is simple: the bigger the peak/off-peak gap and the more you can shift, the more you save.

Home batteries store low-cost energy (off-peak or excess solar) and discharge during high-price periods. Practical battery specs to compare: usable capacity (kWh), round-trip efficiency (%), warranty cycles, and power rating (kW). Example real-world values under current market figures: usable capacity 10–13.5 kWh, round-trip efficiency ~85–95%, and warranties for 5–10 years or 3,000–6,000 cycles.

Shared or community solar lets subscribers receive bill credits for a portion of a remote solar array. Credits are often applied as a monthly supply credit; the credit rate and program fees determine actual savings. Many programs are capped by utility or state rules, which can limit enrollment or the size of the program and affect long-term availability.

Net-export and buyback rules matter: export credits for exported solar are often lower than retail rates (commonly 20–60% of retail in current market figures), so batteries can help maximize self-consumption rather than exporting at low credit rates.

How to Save Money

  1. Measure your baseline: Look at the last 12 months of bills. Note monthly kWh, peak-hour kWh (if metered), and current rate blocks. Typical U.S. households use ~700–1,000 kWh/month; adjust examples below to your usage.
  2. Run a simple TOU shift calculation: If you use 900 kWh/month and can shift 30% (270 kWh) from a peak rate of $0.30/kWh to an off-peak $0.10/kWh, monthly savings = (0.30–0.10) * 270 = $54/month or $648/year (according to current market figures).
  3. Size a battery for shifting: A 10 kWh usable battery with 90% round-trip efficiency delivers ~9 kWh/day or ~270 kWh/month — roughly the shift in the example above. Account for battery degradation and cycles.
  4. Compare costs and payback: If the 10 kWh battery costs $8,000 installed, savings of $648/year give an uncomplicated payback of ~12.3 years. With a 30% incentive (ITC-style), net cost $5,600, payback ~8.6 years. Check local rebates that can shorten this further.
  5. Factor in shared-solar: If community solar credits reduce your supply charge by 5–15%, typical subscriber savings are $5–$30/month, depending on household use and share size. Shared solar is lower-risk than owning a system but watch program caps and contract length.
  6. Optimize operations: Set your battery to charge during the lowest priced hours (or from your solar) and discharge during declared peak periods. Many smart inverters and energy management systems automate this and provide estimated savings.
  • Other practical tips: upgrade to efficient appliances, shift heavy loads (EV charging, laundry) to off-peak, use smart thermostats, and monitor bill impacts for 3–6 months before deciding on a battery.

Bottom Line

Time-of-use pricing plus a properly sized battery can convert price differentials into predictable dollar savings; a 10 kWh battery commonly shifts ~270 kWh/month and can save $30–$60/month under typical TOU gaps in current market figures. Shared-solar offers steadier, smaller monthly savings ($5–$30) with lower upfront cost but can be affected by program caps and credit rates. Compare your utility’s TOU schedule, export/buyback rules, battery installed cost ($400–$900/kWh range), and available incentives (up to ~30%) to calculate payback. Real savings depend on your specific rates, usage pattern, and local program rules; run a 12-month billing projection to estimate likely payback within an 8–15 year window for most residential setups.