Home energy storage devices store electricity locally, for later consumption. Electrochemical energy storage products, also known as "Battery Energy Storage System" (or "BESS" for short), at their heart are rechargeable batteries, typically based on lithium-ion or lead-acid controlled by computer with intelligent software to handle charging and discharging cycles. Companies are also developing smaller flow battery technology for home use. As a local energy storage technologies for home use, they are smaller relatives of battery-based grid energy storage and support the concept of distributed generation. When paired with on-site generation, they can virtually eliminate blackouts in an off-the-grid lifestyle.
The stored energy commonly originates from on-site solar photovoltaic panels, generated during daylight hours, and the stored electricity consumed after sundown, when domestic energy demand peaks in homes unoccupied during the day. Small wind turbines are less common but still available for home use as a complement or alternative to solar panels.
Electric vehicles used during weekdays, needing recharging overnight, are a good fit with home energy storage in homes with solar panels and low daylight-hour electrical consumption. Electric vehicle manufacturers BMW, BYD, Nissan and Tesla market own-brand home energy storage devices to their customers. By 2019, such devices had not followed the price reduction of automotive batteries.
The units can also be programmed to exploit a differential tariff, that provide lower priced energy during hours of low demand - seven hours from 12:30am in the case of Britain’s Economy 7 tariff - for consumption when prices are higher.
Smart tariffs, stemming from the increasing prevalence of smart meters, will increasingly be paired with home energy storage devices to exploit low off-peak prices, and avoid higher-priced energy at times of peak demand.
Transmission of electrical power from power stations to population centres is inherently inefficient, due to transmission losses in electrical grids, particularly within power-hungry dense conurbations where power stations are harder to site.
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