Battery Savings Calculator

Model daily shifting and demand charge savings quickly. Include incentives, maintenance, and degradation over years. Get a realistic plan that fits your household budget.

Inputs

Nominal stored energy rating.
Accounts for reserve and limits.
Energy out ÷ energy in.
How often you discharge usable energy.
Remainder is charged from the grid.
Used to reduce future benefits.
Price you avoid while discharging.
Price you pay when charging from grid.
Opportunity cost when storing solar instead of exporting.
Average peak kW shaved each month.
Use 0 if you have none.
Your estimated value of outage coverage.
Total installed system cost.
Rebates, credits, or grants.
Monitoring, service, or fees.
Used for NPV and break-even.
Your target return or capital cost.

Example data table

Scenario Capacity (kWh) Cycles/day Peak / Off-peak ($/kWh) Solar share Year-1 net savings
Starter home 7 0.8 0.25 / 0.12 50% $420
High spread rates 10 1.0 0.35 / 0.10 60% $1,050
Small business 20 1.0 0.30 / 0.14 40% $1,680
These examples are illustrative. Your rates, cycling, and demand charges drive outcomes.

Formula used

  • Usable energy = Capacity × Usable %.
  • Delivered energy (Year 1) ≈ Usable × Cycles/day × 365 × (1 − Degradation/2).
  • Grid net per kWh delivered = Peak rate − (Off-peak rate ÷ Efficiency).
  • Solar net per kWh delivered = Peak rate − (Export credit ÷ Efficiency).
  • Year-1 net savings = (Delivered × Grid share × Grid net) + (Delivered × Solar share × Solar net) + Demand savings + Backup value − O&M.
  • NPV = −Upfront cost + Σ(Net cashflow ÷ (1+Discount rate)^t).

How to use this calculator

  1. Enter your battery size, usable percent, and round-trip efficiency.
  2. Set cycles per day based on how often you discharge.
  3. Estimate what percent of charging comes from solar.
  4. Fill in your peak, off-peak, and export credit rates.
  5. If applicable, estimate demand reduction and demand charge rate.
  6. Add upfront cost, incentives, and yearly maintenance costs.
  7. Press Calculate Savings and review payback and NPV.
  8. Download CSV or PDF for records and comparisons.

Insights

Rate spread drives value

The largest savings usually come from the difference between peak and off‑peak pricing. When the spread is $0.20 per kWh and round‑trip efficiency is 90%, each delivered kWh avoids about $0.20 − ($0.10/0.90) ≈ $0.09. Multiply that by annual delivered energy to estimate arbitrage potential. Seasonal tariffs and weekend schedules can change the effective spread, so validate the hours you plan to discharge. Even small rate errors compound when cycled daily. Use your last twelve bills for monthly calibration.

Usable capacity and cycling matter

Usable energy is capacity times the usable percent, not the nameplate rating. A 10 kWh unit at 90% usable provides 9 kWh per cycle. At one cycle per day, year‑one delivered energy is roughly 9×365 adjusted for degradation. Increasing cycles can raise savings, but only if you have enough peak load to offset.

Solar shifting compares against export credit

If solar would otherwise be exported, storing it has an opportunity cost equal to the export credit. With a $0.06 export credit, 90% efficiency, and $0.28 peak price, the net value per delivered kWh is about $0.28 − ($0.06/0.90) ≈ $0.21. Higher export credits reduce this benefit and may favor exporting instead.

Demand charges can dominate commercial cases

For customers billed on peak kW, even small reductions add up. A 0.5 kW reduction at $12 per kW‑month yields 0.5×12×12 = $72 per year, before degradation. If your tariff has higher demand charges, accurate peak‑shaving estimates become as important as energy shifting assumptions.

Payback and NPV support investment decisions

Simple payback divides net upfront cost by year‑one net savings, but it ignores discounting and future degradation. NPV discounts each annual net cashflow using your chosen rate, then subtracts upfront cost after incentives. A positive NPV indicates the savings stream beats your hurdle rate, while the discounted break‑even year shows when the investment turns positive.

FAQs

1) Why can arbitrage savings be negative?

If the peak and off‑peak spread is small, or efficiency is low, the off‑peak energy needed to recharge can cost more than the peak energy you avoid. Check your tariff hours and update rates.

2) What does round‑trip efficiency change?

Efficiency converts charging energy into delivered energy. Lower efficiency means you must buy or forgo more kWh to deliver the same output, reducing net savings in both grid arbitrage and solar shifting.

3) How should I choose cycles per day?

Use a realistic value based on load and operating rules. Many homes cycle around 0.5–1.0 daily, while some programs or peak‑shaving strategies can increase cycles during high‑price seasons.

4) How is degradation handled here?

The calculator reduces benefits over time using a simple linear degradation rate. It approximates year‑one output at mid‑year capacity and scales future cashflows similarly. Manufacturer warranties may differ.

5) Do incentives affect yearly savings?

Incentives reduce the net upfront cost, improving payback and NPV. They do not change operational savings unless they require specific dispatch behavior or program participation that alters cycling.

6) What if I do not have demand charges?

Set demand reduction and the demand charge rate to zero. The results will then reflect only energy shifting, solar shifting, and any backup value you assign, minus annual operating and maintenance costs.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.