Battery Energy Storage Systems for Your Home 

What Are Battery Energy Storage Systems?

Battery energy storage systems (BESS) are devices that store electricity for later use. Typically, residential battery systems are installed in conjunction with onsite solar panels, but they can also be installed as standalone systems.  

Residential battery energy storage systems are becoming more common and there are numerous manufacturers of battery energy storage systems on the market.  

Why Consider a Home Battery Energy Storage System (BESS)? 

  1. Energy Security: A BESS provides backup power, helping you stay connected during outages.  

  2. Cost Savings: By storing energy during low-cost periods and using it during high-cost times, you can reduce your electricity bills. 

  3. Sustainability: Paired with solar panels, a BESS allows you to maximize the use of your self-produced renewable energy.  

  4. Increased Independence: Minimize reliance on the grid and take control of your energy usage. 

  5. Grid Resilience: By using stored energy during high-demand times, you contribute to a more stable and efficient grid. 

BESS and Grid Interactions 

Battery energy storage systems can be operated in multiple ways to accomplish different goals: 

  • Clean Energy Storage and Usage: Store excess electricity produced by solar panels and use it when the sun isn’t shining. The grid is still there for backup when the sun isn’t shining, and the batteries are drained.  

  • Peak Shaving: Store energy produced from solar panels or purchased from the grid during times when electricity is inexpensive and then use battery power during expensive peak hours, to lower energy bills. 

  • Grid Support: During periods of high electricity demand, a BESS can meet onsite load or, with LPEA approval, meet onsite load AND send extra power back to the grid to reduce strain on the grid. 

  • Backup Power: Keep the batteries at a full charge all the time to ensure a reliable energy source for critical needs during outages. 

Because battery energy storage systems can potentially interact with the grid in many different ways, all BESS projects must be approved through LPEA’s Interconnection Process. If you are considering installing a BESS, LPEA recommends speaking with and getting quotes from several local Qualified Solar Installers. 

Financial Incentives

Colorado homeowners can take advantage of federal and state-level incentives for installing battery energy storage systems. These include: 

  • Federal 25D Battery Storage Tax Credit: This allows you to claim up to 30% of the cost of your battery system on your taxes. Learn more here.  

  • Colorado Tax Credit: Colorado offers a tax credit for residential energy storage systems. Learn more here.  

  • LPEA offers rebates to members who install and operate battery energy storage systems in a manner that benefits the cooperative. Shape 

Learn More