Home energy storage payback

What is payback & how does it work?

In general, payback tells you how many years it takes to recover an investment. You invest a certain amount of money initially, then earn income from that investment. The payback is the number of years it takes for the cumulative income to equal the value of the initial investment.

How do you save money on energy bills?

Finally I subtract the actual cost from the estimated cost, then add on the amount received for any exported energy to give me an estimated saving on my bill. Doing that every month for 12 months gives me an estimated monetary saving for the whole year. But… forget the money for a minute, because rates can and probably will change every year.

Which solar system generates the fastest payback?

As expected, the solar system generates the fastest payback from savings at 6.2 years. On a stand-alone basis, the payback period of the Alpha ESS battery is 9.6 years which falls outside the 5-year product warranty but within the 10-year performance warranty. ( figure 5 ).

How does Homer calculate payback?

HOMER calculates payback by comparing one system with another. In general, payback tells you how many years it takes to recover an investment. You invest a certain amount of money initially, then earn income from that investment.

What is domestic battery storage?

Domestic battery storage is a rapidly evolving technology which allows households to store electricity for later use. Domestic batteries are typically used alongside solar photovoltaic (PV) panels. But it can also be used to store cheap, off-peak electricity from the grid, which can then be used during peak hours (16.00 to 20.00).