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Virtual batteries: what they are, how they work, pros and cons

Virtual batteries: what they are, how they work, pros and cons

Solar energy has emerged as one of the most promising and sustainable energy sources of the 21st century. As environmental awareness and the need to move away from fossil fuels have increased, the adoption of solar panels has grown steadily around the world.

However, one of the main limitations of solar energy is its intermittency and its dependence on weather conditions. This is where virtual batteries are playing a crucial role in the solar energy revolution.

Solar energy in context

Solar energy is a clean, inexhaustible and increasingly affordable source of electricity generation.

As photovoltaic technology has advanced, costs have decreased significantly, allowing more homes, businesses, and industrial facilities to adopt this renewable energy source. However, one of the fundamental challenges of solar energy is its variability, since energy production is linked to the availability of sunlight.

Solar energy is most efficient during the day and in ideal weather conditions. At night or on cloudy days, energy production is drastically reduced. This intermittency poses a major problem, since the demand for electricity is constant.

To address this issue, virtual batteries have become an essential component in the transition to a more sustainable energy infrastructure.

What are virtual batteries?

Virtual batteries: what they are, how they work, pros and consA virtual battery is a solution that revolutionizes the way solar energy is stored and used. Unlike traditional physical batteries, which store electricity in the form of chemical energy, the energy generated by your solar panels is supplied to the electrical grid. Subsequently, when you need energy, the electricity company provides you with the energy you need to compensate for what you initially gave up.

In other words, instead of accumulating kilowatt-hours (kWh) of electricity in a physical battery, euros are accumulated in a virtual account. This economic value can be used to offset the electrical consumption of a home or business at times when solar generation is not sufficient.

How does a virtual battery work?

It all starts with generating solar energy through solar panels installed on a home or business. During the day, these panels convert sunlight into electricity, often generating more energy than is consumed at that time.

Instead of storing excess electricity in a physical battery, unused energy is injected into the local power grid. This electricity flows into the grid and is considered a valuable contribution.

The virtual battery assigns an economic value to the electricity injected into the grid, which depends on factors such as the current electricity rate and the time of day it was generated. This value is added to a virtual account.

At times when solar generation is not enough to meet electrical demand, the home or business withdraws electricity from the grid as it normally would. The difference is that, instead of paying for this electricity at standard rates, the economic value stored in the virtual account is used to offset some or all of the cost.


  • Excess Energy Storage: One of the most obvious benefits is its unlimited ability to store excess solar energy during peak generation hours.

  • Continuous energy delivery: Virtual batteries allow the constant delivery of electrical energy at any time and power.

  • Reduced energy costs: By storing surplus solar energy, virtual batteries can reduce long-term electricity costs as users can rely less on grid power and avoid high peak-hour energy prices.

  • Reduction in the cost of installation: by contracting a virtual battery with your electricity company you save the cost of conventional solar batteries.


However, virtual batteries also pose drawbacks and considerations.

Here are some of the main issues to consider:

  • Dependence on the marketer: The operation of a virtual battery depends largely on the electricity marketer with which it has an agreement.

  • Variability of electricity rates: Electricity rates can vary throughout the day and in different regions. This means that the economic value of the electricity injected into the grid may also vary.

  • Regulation and regulations: Regulation and regulations may be different in each country or region.

  • Economic efficiency: The economic efficiency of a virtual battery depends largely on the amount of solar energy generated and the electricity consumption of the home or business.

Publication Date: October 11, 2023
Last Revision: October 11, 2023