Question 1

What is home battery arbitrage?

Accepted Answer

Home battery arbitrage means charging your battery when electricity is cheap (typically overnight off-peak at $0.06–$0.10/kWh) and using that stored energy when rates are high (peak hours at $0.25–$0.45/kWh in some markets). The difference between buy and sell prices is the arbitrage profit. In high-rate markets like California, Hawaii, and New England, arbitrage value can be $400–$800/year per battery cycle.

Question 2

Can I make money with a home battery?

Accepted Answer

You can reduce your electricity bill substantially with a home battery, but 'making money' in the sense of positive cash flow requires a large peak-to-off-peak rate spread. In California (CARE E-TOU-D rate), the spread can be $0.30+/kWh, generating $600–$900/year in bill reduction for a 10–13.5 kWh battery cycled daily. Most markets have smaller spreads of $0.10–$0.20/kWh, generating $200–$500/year — not enough to justify an $8,000+ battery on economics alone.

Question 3

Which utility rates work best for battery arbitrage?

Accepted Answer

Battery arbitrage is most valuable under time-of-use rates with large peak-to-off-peak spreads. Best markets: California (PG&E E-ELEC, SCE TOU-D-PRIME, SDG&E TOU-DR), Hawaii (HECO TOU), Connecticut (Eversource TOU), Massachusetts (Eversource TOU-G), and New York (ConEd TOU). The spread must exceed $0.15–$0.20/kWh to generate meaningful returns given battery degradation and round-trip efficiency losses (85–92%).

Home Battery Arbitrage Calculator