When it comes to making your building more energy-efficient and saving money on your utility bill—solar panels and battery storage are two of the most talked-about options. But while they both help cut costs, they work in very different ways.
When Solar Makes Sense
At its core, solar power is about reducing the price you pay for electricity. By generating energy directly on your building, what’s known as “behind the meter”, you avoid the delivery fees that come with buying electricity from the grid. And thanks to huge investments by manufacturers in R&D and manufacturing optimization (and even over-supply), the cost per kilowatt-hour is often much lower than what you’d pay your utility provider (when you factor in the energy & delivery fees). In short, solar is a great option when your goal is to produce clean, affordable energy right on the roof of your building.
When Batteries Are the Better Choice
Battery storage, on the other hand, doesn’t generate electricity—it manages it. A battery can store energy when demand (and rates) are low, then release it during peak times when costs spike. This process, often called demand management or peak shaving, can significantly reduce the delivery fees and tariffs on your bill. In some cases, a battery can even take the place of an expensive service upgrade to your building’s electrical system, which can save hundreds of thousands of dollars upfront and ongoing.
Do You Need Both?
Not necessarily. Solar and batteries address different challenges. Solar is about making your own power cheaper than utility-provided electricity. Batteries are about controlling how and when you use power. The right choice depends on your building’s needs, your energy use patterns, and your long-term goals.
