Using a Virtual Battery with your Photovoltaic solar Panels
What is a virtual battery?
A virtual battery, in relation to Photovoltaic solar panels, is a technology to simulate the function of a battery system without actually having physical batteries. Despite the name, it isn’t really storage, instead the electricity you produce is recorded by your provider, before being sent back to the grid. This surplus is recorded so that anything you have ‘stored’ through your virtual battery subscription during peak production times can be used when you need it.
What are the advantages of a Virtual Battery compared with a Physical Battery?
Cost
Unlike a physical battery, you don’t need to purchase the battery. There is a setup fee and other costs (see pricing) but these are much less than the initial outlay for the purchasing and associated installation costs of a battery.
Unlimited storage
Just as with a physical battery even though you will be generating your own electricity through your solar panels and storing your excess for later use, in most cases, you may still need to have additional power provided by the grid to meet your consumption needs. Over time, as you generate more surplus in the summer and consume more in the winter, the excess stored with the virtual battery will become more advantageous as there is no limit to the amount or time limit on the storage. The energy generated and stored with the virtual battery can be used when required, reducing your dependency of electricity supplied by the grid thus reducing your electricity bill.
Durable and Ecological
There is no maintenance associated with a virtual battery, unlike a physical battery which can require checks, replacement and upkeep.
The physical battery also has a limited life span (on average 10 years) depending on the type of battery you install and will degrade over time.
Lithium batteries also have a harmful impact on the environment as they use harmful materials. You also need to take into account the carbon footprint for the manufacture and transport of the batteries. It’s also worth nothing that the average battery is also only 50% recyclable.
It is important to point out that the virtual battery isn’t perfect either as the electricity you consume from the grid, to supplement your electrical supply when required, may be from high carbon emitting sources. However, this is the case with any electricity taken from the grid.
Space
A Virtual battery is a great option for you if you are short on space or don’t want to allocate space required for the physical battery.
Advantages of a physical Battery
Depending on your requirements and preferences, you may still prefer a physical battery. With a physical battery, compared with a virtual battery, you don’t have to;
- Change your electrical provider
- Pay a subscription or delivery fees
- Worry about power outages
- You could also benefit from the state aid available
What are the Disadvantages of a Virtual Battery?
Prime d’autoconsummation
In order to qualify for the self consumption bonus you have to sell your excess to EDF. With the virtual battery, as you will be storing your excess for your own use, you don’t have the option to benefit from this bonus.
Power outage
There is no back up electricity if you have an outage. Because the virtual battery it is not physically connected to the production location, in the event of a power outage, you will no longer have power, as you would have with a physical battery which can still provide power in the event of an outage.
What are the costs for an Urban Solar Virtual Battery?
There are different virtual batteries available in France. At B.E Green we recommend Urban Solar.
The set up fee is 199EUR
The Monthly subscription costs are 1EUR/KWp for the virtual battery
Monthly supplier subscription (based on 6kWa) 13,66 €TTC / 14,34 € TTC depending on which option you choose (basic or peak/off peak hours)
Supply price per kWh 0,2516 € TTC/kWh
Price per kWh for delivery of the stored excess; 0.04370€ HT / kWh base // peak hours 0.04470 HT // off peak hours 0.0316HT
Prices as of February 2024
EDF OA or Virtual Battery?
As previously mentioned, if you decide to choose the virtual battery option, you will not be able to benefit from the auto consumption bonus. So which option is best for you, storing your excess through a virtual battery or reselling it to EDF?
If your PV installation is carried out by an RGE installer, you have installed less than 100kWp and your installation is on a roof, you could be eligible for the auto-consumption bonus (prime à l’autoconsommation). The amount available is relative to the power of your installation and varies from 100€ - 370€ per kW. If your production capacity is 3kWp you will in theory be entitled to a self consumption bonus of 1,110€ (3 kWp x 370€ / kWp).
In addition to the bonus, if you decide to just sell your excess to EDF, the purchase price is fixed over a contract of 20 years, regardless of the fluctuations in the price of electricity. It is anticipated that the price of electricity will increase over this period, increasing the gap between the purchase price from EDF and the cost of electricity.
As the price of electricity increases over this period, virtual electricity storage should be a more cost effective option, even when taking into account the autoconsuption bonuses.
A good aim to have with the virtual battery is for you to get to the point where you are consuming as close to 100% of the energy you are generating. It is also a great choice for anyone who is charging their electrical vehicle at night. In this case you could store the excess electricity generated during the day and consume this during the night through the supply from Urban Solar.
Its also worth nothing that with Urban Solar, you are not tied into a contract and can cancel at any time, unlike with the EDF OA contract.
In summary, as well as taking into account the power and location of your installation, you need to decide on your solar goals and priorities when deciding if a virtual battery option would be the best option for you.