Battery Backup vs. Net Metering: Which One Saves You More Money?
One of the biggest benefits of going solar is reducing or eliminating your electricity bill. But how you manage your excess energy plays a key role in your overall savings. Battery backup and net metering are two popular options for homeowners looking to get the most out of their solar system—but which one is the better financial choice?
This guide will break down how battery storage and net metering work, their costs, savings potential, and which option makes the most sense for Ohio homeowners.
What Is Net Metering?
Net metering is a program that allows homeowners with solar panels to send excess electricity back to the grid in exchange for credits on their utility bill. When your panels produce more energy than your home uses, that energy is fed into the grid, and you earn credits. When your panels aren’t producing enough (like at night), you use those credits to offset the electricity you pull from the grid.
Pros of Net Metering:
Maximizes savings with no extra equipment costs
Uses the grid as a means of “storing” the excess energy your system produces
No maintenance required
Cons of Net Metering:
Doesn’t provide backup power during outages
What Is Battery Backup?
A solar battery backup system stores excess energy generated by your panels instead of sending it back to the grid. You can use this stored energy at night, during peak utility rates, or during power outages. Popular battery options include the Tesla Powerwall, Enphase IQ Battery, FranklinWH.
Pros of Battery Backup:
Provides power during grid outages
Reduces dependence on the utility company
Allows energy use during peak rate times
Cons of Battery Backup:
Higher upfront cost ($8,000–$15,000 per battery)
Limited storage capacity (may not cover multiple days of power needs unless you have multiple)
Which Option Saves You More Money?
Upfront & Long-Term Costs
Net Metering: No additional cost beyond your solar panel system.
Battery Backup: Batteries cost $8,000–$15,000 each and may need replacing after 10–15 years.
Winner: Net Metering – It requires no extra investment.
Monthly Energy Savings
Net Metering: Maximizes savings since you earn credits for excess energy.
Battery Backup: Saves money by allowing you to use stored energy when electricity rates are high, but savings depend on battery capacity.
Winner: Net Metering – This option provides higher financial returns.
Protection Against Power Outages
Net Metering: Does not provide backup power during outages.
Battery Backup: Keeps essential appliances running when the grid goes down.
Winner: Battery Backup – Essential for homeowners who want energy security.
Final Verdict: Which Should You Choose?
If your main goal is maximum savings, net metering is the better choice because it requires no upfront investment and allows you to offset your energy costs. Having power when the grid goes down is a luxury, and it comes with a luxury price tag.
If you want backup power during outages and more energy independence, battery storage is worth considering, despite the higher cost.
Some homeowners choose both—using net metering for savings and adding a battery for energy security.
Alternatively, many homeowners opt in to net metering and get whole home natural gas generators to power their home when the grid goes down - this option comes at a lower cost and can power your entire home. Going this route maximizes your solar savings while still accomplishing your goal of having power when the grid goes down.
Not sure which option is right for you? Contact Ohio Solar Initiative today for a no cost consultation. We’ll help you explore net metering and battery backup options so you can maximize savings and energy security. Get started today!
