As energy prices keep climbing and more people care about living sustainably, residential solar PV systems are getting a lot more attention. Unlike traditional electricity use, a solar setup that powers your home and sells extra energy back to the grid can cut your electricity bills. But how do you design and use your solar system smartly to really save the most, or even make a profit? In this article, we’ll break down key strategies and practical tips to help you get the most out of your solar investment.
The Foundation: Pairing Solar with Energy Storage
A solar PV system converts sunlight into electricity to power your home, with any excess energy sent back to the grid. However, as electricity prices keep rising and grid feed-in tariffs continue to drop year after year, simply installing solar panels isn’t the smartest financial move anymore.
The latest trend is combining solar panels with home battery storage. According to EESA data, in 2023, newly installed residential storage capacity worldwide reached about 16.1 GWh — a year-over-year growth of roughly 100.5%.
Here’s how it works: during the day, the system turns sunlight into electricity for your home. Any extra power gets stored in the battery. Then at night — when electricity rates are usually higher, your appliances draw energy straight from the battery first. This not only boosts your self-consumption rate and reduces energy waste but also helps you better manage fluctuating electricity prices and cut down your power bills.
If you already have a solar inverter at home, you can easily upgrade by adding an AC-coupled inverter and a battery to enjoy the benefits of energy storage. Or you can go for an all-in-one solution like the Hinen 5kW AC-Coupled System, which integrates an inverter, battery, control box, and BMS into a single compact unit. One device is all you need to take your home solar system to the next level.
Understanding Local Electricity Pricing Models: How to Profit from Time-based Pricing
There are two main types of time-based electricity pricing: Time-of-Use (TOU) and Real-Time Pricing (RTP).
1. Time-of-Use (TOU) Pricing
TOU pricing is a relatively fixed system where electricity rates vary depending on the time of day. The goal is to smooth out peak demand and fill in the valleys, encouraging users to shift their electricity usage to off-peak hours and save energy.
· During off-peak hours (typically late at night), electricity is cheaper, encouraging users to consume more during this time.
· During peak hours (like early mornings and evenings), electricity prices are higher due to increased demand.
2. Real-Time Pricing (RTP)
RTP is a more dynamic pricing system where electricity prices are based on real-time supply and demand in the market. Prices change regularly, every 5 minutes to an hour, and can fluctuate dramatically — even going negative at times.
How Can Homes with Solar + Storage Benefit from These Pricing Models?
With a solar energy storage system, homeowners can take advantage of these pricing structures through a smart energy management system:
1, For Areas with TOU Pricing: Homeowners can set up their system to automatically charge or discharge the battery during specific time slots.
· Daytime: Solar energy directly powers your appliances, and excess power is stored in the battery.
· Evening Peak: The system draws energy from the battery to power your appliances during peak hours.
· Nighttime Off-Peak: If the battery is low, the system can recharge from the grid at lower rates, ready for use the next morning.
This approach minimizes grid electricity use, lowering overall energy costs.
2, For Areas with RTP (Real-Time Pricing): The smart management system can connect to a Virtual Power Plant (VPP) platform for dynamic pricing response.
· When the system detects extremely low or even negative electricity prices, it automatically charges the battery.
· When prices rise later, the stored energy can be sold back to the grid, allowing homeowners to profit from price fluctuations.
Optimizing Household Electricity Usage Based on Pricing Models
For high-power appliances (like heat pumps, EV chargers, etc.), it's best to use them during the daytime when solar panels are most efficient, typically around noon. The solar energy, converted into electricity by the inverter, directly powers the appliances. Alternatively, these appliances can be used during off-peak hours when electricity prices are lower, minimizing the need to buy electricity from the grid.
The Hinen A-Series all-in-one system features dual dry contact functionality. During peak solar generation times (around midday), if the battery's state of charge (SOC) reaches a preset value (e.g., 95%) and there is still surplus power, the system can automatically activate high-power devices like heat pumps or EV chargers to consume the excess energy, based on user settings.
Connecting to a VPP Platform
For individual home energy storage systems, due to their small generation capacity and high management costs, it's sometimes not possible to directly sell electricity to the grid. In such cases, connecting the home solar storage system to a VPP (Virtual Power Plant) platform can enable energy export.
A VPP platform integrates distributed energy resources (like solar panels, storage, electric vehicles, etc.) into a "virtual" power plant, using software to manage and dispatch energy. It allows small-scale energy producers to participate in the electricity market, just like traditional power plants, enabling electricity sales, frequency regulation, and demand response.
When a home energy storage system joins a VPP platform, there are two main ways to generate income:
1, Energy Sales: When the system connects to the VPP platform, it agrees to allow the platform to control part of the storage capacity. The platform monitors the real-time status of all connected devices. When electricity prices surge, the VPP sends a command to discharge the home battery and sell the power back to the grid, earning the user revenue from the electricity sale.
2, Grid Services: As a "virtual" power plant, the VPP can also provide grid services such as frequency regulation and peak-shaving, helping the grid stay stable and running smoothly. In return, the grid operator or market compensates the platform, which then shares the profits with the user based on their contribution.
Conclusion
Although the initial investment in a solar energy storage system can be higher, with the right product selection and optimized configurations, it can save households a significant amount of money in the long run, and even generate additional income. Contact Hinen today to start your journey toward energy independence!
