Solar Batteries Are a Waste of Money (Unless You Need These Things)
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May 9, 2026Conventional solar design sizes panels to cover your annual usage. The battery-first method turns this around — it starts with when and how you use power, not just how much. In the right situation it meaningfully improves financial returns.
For New Jersey homeowners: For New Jersey homeowners on a standard net metering plan with PSE&G, JCP&L, or Atlantic City Electric, the battery-first method has a different goal than in states with time-of-use pricing. In NJ there’s no rate spike in the evenings to arbitrage — so battery-first is mainly about maximizing backup capability and ensuring your roof’s output potential is fully used.
The Standard Design Problem
A standard solar design optimises for annual kWh production. It doesn’t account for the fact that most home electricity usage happens in the evening — after peak solar production. So panels produce during the day, export to the grid at net metering rates, and you buy back power at retail rates in the evening. With full net metering this is fine. With partial net metering, it leaves money on the table.
How the Battery-First Approach Works
Size the battery first — based on your evening consumption. Then size the panels to fill the battery daily plus cover daytime loads. The result: less grid export, more self-consumption, and full retail rate savings on power you’d otherwise buy back. When grid export credit is less than retail rate, self-consumption wins.
Where It Works Best
States and utilities where net metering credits are below retail rate. High evening usage homes. Homeowners with EVs charging overnight. Any situation where the value of stored solar exceeds the value of exported solar.
Where Standard Design Still Wins
NJ currently has strong net metering — the credit is close to retail rate. For most NJ homeowners, standard design is financially optimal. The battery-first approach becomes compelling if NJ’s net metering policy changes or if your EV charging adds significant evening load.
The Takeaway
Understand your utility’s net metering terms before deciding on battery sizing. Jon models both scenarios for every NJ estimate — the numbers tell you which approach fits your situation.
Find Out What Solar Saves You in Your Home
Every home is different — roof angle, usage, utility rate, and local incentives all affect your numbers. Enter your monthly electric bill below for a free savings estimate. Jon reviews every submission personally and follows up within 2 hours.
Want to See the Battery-First Method Applied to Your NJ Home?
Jon uses a production-first design approach for every NJ installation — modeling your usage pattern, peak demand, and backup needs before specifying panel count and battery size. Book a free call to see what this looks like for your specific home.
