Power Price Protection

Why Net Present Value Matters?

The home energy management and storage market is growing rapidly. Energy storage systems (ESS) are a critical component for modern energy management. There are two types of systems. One is a robust home energy management system while the other is simpler and focused only on time-of-use (TOU) savings.

FranklinWH provides the best net present value (NPV) across both types of home solutions, providing constant, around the clock, saving and fully offsetting peak-demand utility usage with battery storage. The result adds approximately $5,200 to $13,800 in NPV to a home’s value.

That is not even counting the additional savings and peace of mind from the full backup features of the FHP.

Historically, homeowners were able to save money simply by adding a solar photovoltaic system to their homes, but recent rule changes in California have changed the calculation by ending Net Metering and moving to a Net Billing Tarriff (NBT).

NEM 3.0 started on April 14, 2023, when the state of California effectively reduced net metering rates by about 75 percent for new PG&E, SCE, and SDG&E customers.

This means that with the addition of a FranklinWH home energy management system to the home, the homeowner may automatically and precisely deploy power during peak rate periods to reduce utility bills and enhance the net present value of a home’s electrical system.

How Does Net Billing Work?

FranklinWH results in lower NPV for households than TOU-only products

The tables in the white paper analyze the NPV to a homeowner of the FranklinWH home battery system. The analysis calculates battery throughput over the warranty period of competitive options. Annual utility inflation and discount rates are conservatively assumed as 3.0% and 5.0% respectively to align more closely with typical historical rates.

The table shows an example of warranty period savings.

These ROI and NPV values are for PG&E utility territory and are more conservative than analyzing SCE and SDGE utility territories.

FranklinWH aPower X economic analysis over system warranty period in PG&E utility territory