How does solar energy storage system work?

How does solar energy storage system work?

21 October 2021 at Waaree

Numerous people believe that solar-powered houses are free of electrical networks. However, in reality, a majority of them operate in conjunction with the local utility. Also, when solar panels generate more energy on a bright sunny day, this additional energy gets stored back to the utility to use on a dark overcast day to fulfill your home's energy requirement.

This is why solar energy is the most crucial element of a typical household solar system. A solar energy storage system operates by affixing a battery to your home-installed solar system and usually performs two primary functions that include backing up power when the grid goes down and help lower your utility expenses.

Understanding the working of solar energy storage

Numerous homeowners buy solar energy storage as a substitute in case the power from the grid runs out. With thunderstorms, wildfires, storms, and other natural calamities growing more prevalent in modern times, many people are using this storage to remain comfortable during these times of no grid power. Also, when a grid runs out of power, solar panels do not work and shut themselves off as a safety precaution.

This is when solar power storage comes into the picture, as it can keep working even during low or non-powered grids and remain prepared for emergencies. In addition, another reason why many homeowners opt for this solar power storage is to take advantage of time-of-use (TOU) rates.

A time-of-use (TOU) rate is when a utility firm imposes higher charges at a specific time of the day and more economical prices at other moments. The utility service firms do this when there is tremendous demand on the solar grid, especially during the nighttime when everyone is at home utilizing power.

Hence, to avoid this situation, homeowners are now moving towards using solar energy storage that helps a solar battery get over these TOU rates by energizing itself throughout the day, either from the cheaper grid power or through the solar panels, and then unload that energy during the night.

This further enables people to seize any excess energy that solar panels generate and utilize it later in the evenings to reduce the utility bills.

Essential components of a solar energy storage

Solar energy storage works by collecting excess energy produced by solar panels during the day to use them when there is no power in the grids or during evenings when the TOU rate is higher. Mentioned hereunder are some vital components of solar storage.

Solar panels

Solar panels are one of the most crucial components of solar energy storage that enable your solar system to load your battery with renewable energy sources. While you can possess a power storage system without solar panels, holding solar panels is a better option. The four most prevalent solar panel types include Polycrystalline, Monocrystalline, Thin Film, and PERC solar panels.


Inverters are a machine that transforms power from AC (Alternating Current) to DC (Direct Current) and vice versa. Also, these inverters help transform the direct current or DC power from your solar panels and batteries into Alternate Current or AC energy that gets used in every household. Moreover, some solar panel batteries and panels now come with a built-in inverter as a part of their element.


A battery is yet another essential component of solar energy storage that is the heart and soul of the power storage system. The two most prevalent varieties of solar power batteries include Lithium-Nickel-Magnesium-Cobalt (NMC) and Lithium-Iron-Phosphate (LFP). Also, these solar batteries usually last between 5 to 15 years, depending on how often they get utilized and maintained.

  • Critical charge subpanel
  • A critical charge subpanel is a machine that defines what electronic equipment will get powered if the solar grid runs out of power. The main reason why this rationing takes place is that many batteries cannot power an entire household for an extended time.

    Hence to prolong the amount of time your solar battery endures during a power outage, you can decide to power only a few vital electronic appliances in your place (such as the fans and lights). The critical load sub-panel likewise enables you to determine those crucial loads, and solar installers must install this up accurately for optimum battery capacity.

  • Other essential components
  • Apart from the ones above, several elements help make solar power storage system operations seamless. That includes fuses, AC & DC disconnects, switchgear, circuit breakers, cables, electrical conductor, mounting devices, battery cells, and protection devices. Also, some advanced solar storage systems comprise mobile apps and software to provide even better control to every homeowner.

Read further: How Does the Solar Power System Work?

Factors to keep in mind while installing solar energy storage at your place

Several factors ascertain whether a solar energy storage system is a suitable fit for your place. The two principal factors to consider are energy reliability and cost discussed below.

  • The price of energy storage
  • While costs have been regularly diminishing due to tax credit facilities and incentive schemes, solar energy storage systems are still pretty pricey. Hence the most suitable way to get the most affordable storage option is to pick the appropriate storage required at your place by modeling out the time-of-use rates. Also, if you reside in a region with a high time-of-use rate, you can go for a solar power storage system to utilize during those high time-of-use durations.

  • Storage and energy reliability
  • With natural catastrophes increasing in frequency, numerous homeowners solely require the power security that arrives with an energy storage system. Hence, when planning to purchase a storage system for your place, always look for the ones that give you better storage capacity and great peace of mind.

To sum up, we can say that solar energy storage in the present times has become the most profitable investment for homeowners. However, to get the best benefits of a storage system, it is advisable to opt for the one well-suited for your place.

If you are looking for a solar energy storage system or any other storage-related assistance, look no further than us. We at Waaree Energies Ltd. are one of India's leading manufacturers of solar panels and present you with authentic and high-grade solar-powered products. To know more about our solar products, call us at 022 - 66444444 or email us at

You can also read: How does a BESS (Battery Energy Storage System) Work?