Selling Excess Solar Energy to the Grid More Profitable than Battery Storage - PHILERGY German Solar
Metro Manila, Philippines - With solar energy system components getting more affordable each year, more and more are looking into generating their own electricity from the sun. Using solar energy during the day remains the optimal economic approach, as the high repeating expense of procuring and using a battery to store excess energy remains inferior to selling the excess energy back to the grid.
A study at Finland's Lappeenranta-Lahti University of Technology (LUT) has concluded that the expense of residential battery systems means they are less profitable than exporting unused electricity generated by household solar panels to the grid.
The study concluded that the most valuable use of solar electricity was for self consumption, as it avoids the taxes and grid charges associated with each kilowatt-hour of network electricity, as well as the wholesale cost of the energy. [source] Even if batteries increase the self consumption capacity of a building, the repeating costs of replacing batteries outweigh the benefits they bring.
“Many still think batteries are the best, or even a necessary solution for deriving a profit from self-produced electricity,” said Jero Ahola, LUT professor of energy efficiency in electricity-driven systems. “However, current battery prices rarely make the investment profitable.”
In the Philippines, investing in a solar system guarantees a secured payback per year of >15% IRR and a return on your investment (ROI) between 4-7 years. A solar battery decreases your investment case remarkably with an ROI of up to 15 years. Since you have to replace the batteries after 8-12 years, your investment most likely won’t have a return at all.
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