Storing Solar Energy

Rooftop Solar

More than 70,000 Long Island homeowners now have solar photovoltaic (PV) panels installed on their homes. The cost of solar has decreased dramatically over the years, making it an affordable option for many more households. Installing solar on your rooftop allows you to harness the power of the sun to reduce your energy bills, while remaining connected to the energy grid. This connection provides two benefits. First, there will be times when you’ll need power from the grid – at night, on a cloudy day or when there’s snow covering your solar panels. Second, at times when your PV system is generating more power than you need, the excess power flows into the grid and earns you “energy credits” that will reduce future bills.

Storing Solar Energy
Solar panels produce energy all day whether you need it or not – and it’s often more than you need. The only option for excess power had been to send it into the energy grid in exchange for credits. Technological advances have made battery energy storage an affordable new option. By storing solar energy in your battery system, you have more control over how and when you use it, with greater benefits than a solar PV system alone.

How it Works
A battery storage system is housed indoors or outdoors in a box the size of a small cabinet. Most systems use lithium-ion batteries – like in a cell phone or electric vehicle. Your solar contractor will determine the best location for your solar panels and batteries and the appropriate size of the entire   system. The system can provide backup power when the energy grid experiences an outage. Your battery storage system will act like a generator to power your home – either partially or fully depending on your individual system. If there’s a multi-day outage, the solar panels will recharge the battery each day to keep your home running throughout.

Powerful Incentives
PSEG Long Island’s Residential Energy Storage Incentive is available for the energy storage component of the system and reduces your upfront cost. You must have a participating NY-Sun contractor install the system and meet the following eligibility requirements: You may also qualify for federal and state tax credits on both the solar panels and storage system. Your solar contractor can provide all of the details and submit the required documentation. 

Pricing Options
Our Time-of-Day (TOD) pricing plans offer another way to benefit from solar power. TOD rates offer lower energy prices during periods of the day and night when demand for electricity is low and higher prices in the late afternoon and early evening when demand is greater. Your solar panels can charge your battery while you use power from the energy grid at lower prices. Then, you avoid the higher cost periods by powering your home with the battery system. TOD rates are not right for every solar customer though, as it depends on the size of your system and how you use it.

Netting the Benefits
When you have solar installed, we replace the current electric meter with a “net meter,” if not already installed. This meter measures electricity flowing in two directions to determine your “net” usage. Net usage is the difference between the amount of power you supply into the energy grid and the amount you get from it. As with any meter, the reading on a net meter runs forward when you are using power from the grid. But only with a net meter can the reading run backward when your panels are supplying energy into the grid. If there’s a billing period during which you supplied more power than you used, you’ll earn credits that will reduce future bills. A net meter cannot measure the total amount of energy produced by your system. Speak with your solar contractor about obtaining that information. You’ll receive a PSEG Long Island bill every month based on your “net consumption” of electricity, measured in kilowatt hours (kWh). There’s a bill even in months when you’ve produced more power than you used because of the daily service charge that covers the cost of your 24/7 connection to the energy grid. In months when you generate excess power, you earn credits that are added to your Energy Credit Bank, which will appear on your bill. Credits are applied to and lower future bills.


Frequently Asked Questions

Please see the following frequently asked questions.

  • Why does my system need to be connected to the energy grid?
    Even with battery storage, a solar PV system cannot provide all of the energy you need. The energy grid supplies power at night or on cloudy days and takes in excess power when there is no battery storage or when your batteries are fully charged. Excess power is converted to energy credits that help reduce future bills that include the cost of energy from the grid.
  • Will I still get an electric bill?
    Yes, but they should be significantly lower. Because you’re still connected to the energy grid, there’s a daily service charge and there will always be times when you are drawing power from the grid, like at night.
  • When is the stored energy used?
    The batteries can provide limited power during a power outage, eliminating the need for a noisy, fuel-burning standby generator. But it also gives you the opportunity to benefit from a Time-of-Day (TOD) pricing plan that can save you even more money than with a solar PV system alone. TOD rates are not right for every solar customer, so be sure to discuss this option with your aggregator.
  • Will I have power during an outage on the grid?
    Yes, if your solar panels are paired with a battery storage system. A solar PV system alone shuts down during an outage to prevent power from flowing into the    energy grid, which could endanger repair crews. When you add energy storage, the system will provide limited power around the clock to run essential circuits in your home, like for some lights, heat and kitchen appliances. There’s no need for a standby generator. Your contractor will help you determine your energy needs during an outage.
  • Can I go completely “off the grid”?
    While it’s technically possible, it’s rarely cost effective. Supplying and storing 100% of a home’s energy needs 24/7 would require a significant expense for the additional solar panels and larger batteries.
  • Do I have to include energy storage in my system?
    No. Solar power alone is a great way to save money and protect our environment. Adding energy storage delivers even greater benefits.