Solar panels with a smart home battery? An upgrade for your energy

How does a home battery work?

A home battery is an energy storage system you can install at home to store electricity generated from, for example, solar panels. When the sun shines, your solar panels often produce more energy than you need directly. This excess energy is stored in the home battery and later on, when you need more energy than you are currently generating, you can use it again. This way, you can use your own generated energy more efficiently and reduce your energy costs.

What is a home battery with smart control?

A home battery with smart control works in the same way as a standard home battery, only with a few extra features. This is thanks to the AI box connected to your battery’s converter.

1. Smart power distribution

A smart battery communicates with your solar panels and your energy grid to use the solar energy generated in the smartest way possible: the system finds where best to send the generated energy and when. For example, a smart battery will choose to deploy the stored power at peak times. To avoid the high cost of the capacity tariff, the AI box will predict at what times of the day you need a lot of energy at once, so the battery can provide energy at those times. This may be around 6-7 pm in the evening, for instance, when the oven, stovetop, TV and air conditioning are all in use.

A standard home battery, on the other hand, deploys power for as long as it has stored power. This is still very convenient, but does not take into account off-peak and peak hours, and you therefore miss out on additional savings opportunities.

2. Dynamic energy rate’s best friend

If you have a dynamic energy rate, the battery takes this into account. This is because it can purchase energy when energy prices are low. You can then use that energy later when you need more expensive energy from the grid.

3. No overloading

The gradual switch to electricity as the main energy source is a good thing, but demands a lot from our energy grid. You can use a home battery to better balance supply and demand in order to avoid overloading.

What does a home battery cost?

The cost of a home battery is currently between €3,000 and €11,000, depending on the number of kWh it can store. But according to a Flemish government estimate, the average family would benefit from a 4 kWh battery, which, at a price around €4,400, is on the cheaper end of the spectrum.

The payback time for home batteries these days still fluctuates quite a bit, as it is related in part to energy prices and the size of your solar panel system. For a standard home battery, the payback period currently fluctuates between 6 and 15 years. Since the lifespan of a home battery can be 10 to 20 years, chances are you will not be able to recoup the price of the home battery.

But that does not apply to smart batteries. In fact, a battery with smart control is so energy-efficient that you almost cut the payback time in half thanks to its savings. Moreover, the payback period for smart home batteries is only improving.

Combined with a converter and solar panels, you’re soon at a total investment amount of between €10,000 and €20,000. That may sound like a lot, but you also enjoy a lot of savings in return.

Upgrading your solar panel system with a smart home battery: the benefits

• Considerable energy independence

  You can spread your electricity consumption better and are not dependent on peak sun moments, the grid or fluctuating market prices. A smart battery helps you avoid all these costs because it takes into account real-time prices and your consumption habits.

• High self-consumption

  Your self-consumption is significantly higher. Without a home battery, most families use an average of 30-40% of the solar power generated. With a battery, that increases to 70-80%. As a result, you enjoy a lot of free electricity, but your distribution grid costs also drop: you purchase less power from the grid, so you also have to pay less to use it.

• Significantly lower than the capacity tariff

  Since the introduction of the capacity tariff in early 2023, distribution network charges are no longer calculated based on your actual consumption, but your peak consumption. In other words, the time of month when you consume the most energy at the same time. A smart home battery monitors your peak consumption and takes over from the grid power when your consumption spike threatens to get too high. This means that this measure has little impact on your electricity bill.

• High feed-in compensation

  With a feed-in contract, you receive compensation for every unused kWh of solar power you return to the grid. If you have a dynamic energy rate, a smart home battery can even deal strategically with those feed-in rates: it sells your surplus at the time when energy demand is highest, so you receive the highest possible amount.

A premium for home batteries in 2024?

This no longer applies. Since 1 August 2019, the Flemish government awarded a home battery premium, but this was terminated in April 2023.

Is a home battery worthwhile for me?

If the energy crisis has taught us anything, it is that considerable independence from the energy grid is valuable. In times of fluctuating energy prices, a home battery offers added security. The surplus from your solar panels no longer goes to waste, but you simply use it later. This means you don’t have to purchase that power from the grid again, avoiding the high energy prices of that moment.

So, the combination of solar panels and a (smart) home battery can be very worthwhile. But whether a home battery is profitable in your situation depends on the purchase price, capacity and lifetime of the home battery, output of your solar panels, your (own) consumption, a possible investment premium and so on. This is why it is important to consult an expert for the best possible solution for your situation.