Is a home battery still a smart investment now that the battery premium is gone?

Since April 1, 2023, it is no longer possible to apply for a premium for the inspection and installation of home batteries. This means that the investment cost of the battery must fully pay for itself based on the savings it can achieve.

We hear you thinking, "So is such a home battery or PV installation still a worthwhile investment? We researched it for you.

Would I still invest in a PV system and home battery?

Many households are currently questioning whether a battery-powered PV installation is still a worthwhile investment to reduce their energy bills. The rollout of the digital meter has left some in doubt about this. But even with the digital meter, this investment remains a smart move for your energy bill. We'll explain it to you using an example:

For a family with an annual consumption of 4000 kWh with a solar panel installation of 4.0 kWp, this will realize a savings on the energy bill of about 908€(1).

(1) savings realized based on current purchase rate of 0.36€/kWh, an injection rate of 0.17€/kWh and own consumption of 30%- see comparator )

The main reason for many to add a home battery to this is to keep more self-produced electricity "in the house" and consume it themselves at a later time instead of having to purchase expensive power at that time, we call this a battery that increases your self-consumption.

This can increase the savings on energy bills to 1,212€: the home battery realizes an additional saving of 304€(2).

(2) savings realized based on current off-take rate of 0.36€/kWh, an injection rate of 0.17€/kWh - see comparator - assuming the battery increases self-consumption from 30% to 70%. The injection share decreases from €476 to €204 because there is less injection. Therefore, the net effect of the home battery is 576-272=304 EUR.

From the above example, you can see that a battery in self-consumption realizes only a limited financial benefit compared to the investment cost. Without a premium, you are looking at a very long payback period.

A smart battery, not a stupid investment!

When you start smartly controlling the same battery with a battery EMS (Energy Management System), you're going to realize additional savings from smart battery control.

This steering not only focuses on self-consumption, but is also going to take into account other opportunities in the energy market to determine what is most beneficial to the end user. For example, it will:

• at times when energy is very cheap - sometimes even free(3) - store extra energy in the battery to be used later in the home and/or sold back at higher prices.
• Reduce off-take peaks so that one pays a lower capacity rate
• Smartly controlling a charging station in combination with the battery so that one can charge an electric car in the cheapest way possible
• ...

This type of battery controls will increase the realized benefit by about 25% on average, which significantly reduces the payback period of the home battery. Moreover, this maximizes the response to the price signals of the energy market and allows you to contribute to a climate-neutral energy system.

(3) In the energy market, it already happens that the energy component of your electricity contract is free, but taxes and charges still apply.

FlexiO, the smart battery controller that goes one step further!

FlexiO is an EMS system that will intelligently control the home battery according to the various opportunities in the electricity market as mentioned above.

For this, FlexiO will take into account parameters such as:

• The historical consumption of your home
• The expected production of solar power as a function of the weather forecast
• Energy market prices
• ...

However, FlexiO will soon (the service will be launched in mid-2023) go one step further:

FlexiO can co-deploy the battery through the FlexiO community to help balance the grid. In the power grid, supply and demand must always be balanced. With increases in renewable energy, this is becoming more challenging. If you are ready to take action when an imbalance occurs, you will be compensated for this and contribute even more to a climate-neutral energy system.

This additional revenue will increase the total benefit from smart home battery control by a 60%.

For solar panel owners, by investing in a home battery with FlexiO's smart control, up to 93% additional benefit can be realized.

For owners who already own a self-consumption battery, up to 45% additional benefit can be realized by adding FlexiO's smart control.

Moreover, each time you contribute more to a climate-neutral energy system.

FlexiO takes battery usage into account

A battery that works wears out, everyone understands that. But how much does that wear and tear cost, and how should you handle it? FlexiO does this for you, completely unburdened. FlexiO determines when a particular action of the battery yields more than the wear cost (4). Thus, at the end of its life, the battery will have realized the greatest benefit.

But there is more ....

When the battery is deployed by the FlexiO community in the grid balancing service, part of the battery's power and capacity is reserved for this service. This part of the battery can then no longer be used for other actions and thus, by definition, the battery will run fewer cycles.

An additional advantage is that the FlexiO control allows the battery to work all year round (a stationary battery wears out too - think of a car battery that you don't charge for a long time) AND the FlexiO balancing service also ensures that the battery does not fully discharge (0%) or charge (100%). These are the typical areas where battery wear is greatest.

Conclusion?

It still makes sense to invest in a PV system and home battery, even if you can no longer claim the battery premium. The financial benefit of a home battery in self-consumption is limited compared to the investment cost, but can be increased by cleverly controlling it with a battery EMS (Energy Management System) such as FlexiO. This smart control not only increases the realized benefit, but also contributes to a climate-neutral energy system.

FlexiO , the smartest choice for your wallet and the planet!

(4) FlexiO determines this cost by taking into account the lifetime of the battery (expressed in a number of cycles) as well as the internal energy losses in the system. Thus, FlexiO knows the cost per cycle of each battery and will then deploy it if the benefit of the action yields more than this cost