Overview:
Lightreach has recommendations for the Battery settings based on a variety of factors; contract type, location, utility rate plan options and net metering policy, system design/configuration, etc.
Recommended battery operation mode varies by home. Some homes are not incentivized to use stored energy except during outages (e.g. 1:1 NEM with non-TOU markets) where Backup Power is desirable. California NEM 3 has customized TOU and AI Optimization modes and rate plans. While utilities with low export credits can optimize utility bill savings with Self-Consumption modes as in Arizona, Illinois, Georgia, Hawaii, Texas, West Virginia.
Battery Mode Considerations:
**Disclaimer: it is the sole responsibility of the EPC/Installer to verify that the battery settings for the customer were selected by taking into consideration the below factors:
Customer Contract, Arbitrage vs Full Services (Backup), battery selection in the LightReach Agreement
Value proposition from the customer's current and future Utility rate plans and net metering policy
Customer usage profile
System design and installation
Customer expectations and intended operation (e.g. backup preferences vs savings)
Original Equipment Manufacturer (OEM) recommendations:
Be sure to reference applicable OEM resources
When evaluating TOU vs Self-Consumption mode, Self-Consumption should generally be the default unless the OEM has pre-programmed the TOU rate plan in their dropdown selections, and recommends TOU mode (also called Savings or AI Optimization in Enphase).
Setting Requirements:
As we start advising on Battery Settings, many of these begin as recommendations. As some become strict LightReach requirements verified at Milestone 2, we will list them here.
Although not recommended by LightReach, we acknowledge that customers may choose to adjust these settings in their mobile app after you set them.
Customer contracts with Full Services (Backup) Batteries will always require our standard 20% minimum Battery Reserve level and have ‘Storm Guard’ settings enabled (effective 9/15/2025)
SolarEdge: Weather Guard
Tesla: Storm Watch
Enphase: Storm Guard
California NEM 3 utilities must follow the OEM preset modes for NEM 3 (to be effective 1/1/2026)
SolarEdge: TOU
Tesla: Time-based control
Enphase: AI Optimization
California NEM 3 customers must have the NEM 3 eligible rate plan selected (to be effective 1/1/2026). Each of the OEMs have these pre-programmed in a selectable drop-down list.
PG&E: E-ELEC
SCE: TOU-D-PRIME
SDGE: EV-TOU-5
CA Net Billing Tariff (NEM 3):
Applies to PG&E, SCE, and SDGE
| Arbitrage | Full service (Backup) |
CA NEM3 | Yes | Yes |
Required Modes | SolarEdge: Time of Use Tesla: Time-Based Control Enphase: AI Optimization
| SolarEdge: Time of Use Tesla: Time-Based Control Enphase: AI Optimization
Storm Mode must be enabled |
Utility Rate Plan | PG&E: E-ELEC SCE: TOU-D-PRIME SDGE: EV-TOU-5
| PG&E: E-ELEC SCE: TOU-D-PRIME SDGE: EV-TOU-5 |
Reserve State of Charge | No minimum MAX: up to 50% depending on customer preference | Minimum 20% required Max: up to 100% depending on customer preference, however, the less reserved for backup the more the battery can be used to save on rates.
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Arizona TOU & Export Credits:
Arizona utilities offer low export credits, and TOU rate plans are required in the most common utilities. Arizona uniquely offers optional TOU+Demand charge rates, which some homeowners who are involved with their usage and rate plan may choose.
Both Self-Consumption mode and TOU/Savings mode are acceptable in Arizona.
LightReach generally recommends Self-Consumption Mode (also called Self-Powered) in Arizona as it’s easy to configure. Self-Consumption mode ensures all stored energy is utilized first, up to the Reserve Level, before the home consumes from the grid.
TOU mode, called Time-Based Control in Tesla and Savings mode in Enphase, could very well benefit homeowners further. However, it’s critical the correct utility rate plan is programmed with accurate Buy and Sell rates. Since LightReach is not confident all Arizona rate plans are correctly programmed and match each homeowner’s actual utility rate, we recommend installers set the mode to Self-Consumption.
| Arbitrage | Full service (Backup) |
Arizona | Yes | Yes |
Mode Recommendation | SolarEdge: Self-Consumption Tesla: Self-Powered Enphase: Self-Consumption
TOU mode also ok
| SolarEdge: Self-Consumption Tesla: Self-Powered Enphase: Self-Consumption
TOU mode also ok
Storm Mode must be enabled. |
Reserve State of Charge | No minimum MAX: up to 50% depending on customer preference | Minimum 20% required Max: up to 100% depending on customer preference, however, the less reserved for backup the more the battery can be used to save on rates.
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Utilities with TOU rate plans (outside of CA & AZ)
LightReach generally recommends ‘Self-Consumption mode’ (or Self-Powered) unless:
The OEM has a pre-programmed drop-down of the utility’s TOU rate, both Buy and Sell rates – and it’s accurate, or
The OEM provides specific recommendations for which battery settings to use.
If the TOU rate requires custom entry by the installer or homeowner, then a mistake setting up the TOU rate plan could impact the desired operation.
Even if TOU rate plans are correctly entered, some customers may NOT benefit from TOU/Savings battery settings. Self-Consumption MAY be a better option for the customer, particularly in utilities with:
Low export credits instead of net metering (e.g. MI, IL, AZ)
Illinois - Energy Storage Rebate recipients are required to take service on an hourly pricing TOU rate. Unique to IL, the pricing changes every hour without knowing what it will be until the day before. Battery manufacturers have advised using Self-Consumption mode as they do not have an API connected to the IL utilities to get daily pricing.
Utilities that do not allow excess NEM credits to offset TOU time periods other than the time period it was exported in meaning Peak kWh credits can only offset Peak grid usage (e.g. NC, SC, OK)
Situations with TOU rate plans where TOU mode could be beneficial is when the utility provides:
Monetary NEM credits based on the time period solar is exported
Examples include Xcel CO, grandfathered CA NEM 1 and NEM 2, and some utilities with optional TOU including LADWP, MA, CT, RI, and NY.
TOU Rate plan? | 1:1 NEM credit? | Mode Recommendation | Reserve State of Charge | Example Markets |
Yes | No, export credit | Self-Consumption (or Self-Powered) | Minimum 20% required
| MI, IL |
Yes | Yes, kWh NEM credits can only offset the time period they are produced in | Self-Consumption (or Self-Powered) | Minimum 20% required | NC, SC, OK
|
Yes | Yes, monetary NEM credits valued at the $$ peak or $ off-peak rate they are produced in | SolarEdge: Time of Use Tesla: Time-based control Enphase: Savings
| Minimum 20% required | Xcel CO, CA NEM1 and 2 customers, and LADWP’s optional TOU |
Utilities with Non-TOU rate plans
If the customer is in a utility with a fixed rate plan (i.e non-TOU) and 1:1 Net Metering select 100% Full Backup mode. Self-Consumption with a high backup reserve would also be suitable (anything except TOU/Savings mode .
For customers in utilities with a low export credit instead of NEM, ‘Self-Consumption mode’ (or Self-Powered) is critically important to reduce exports to the grid for minimal credits. Examples of utilities with export credits and no TOU include GA, TX, and WV.
TOU Rate Plan? | 1:1 NEM Credit? | Mode Recommendation | Reserve State of Charge | Example Markets |
No | Yes | Recommend: Full Backup Reserve Storm Mode must be enabled
| Minimum 20% required | CT, IA, KS MA, MD, ME, MO, NJ, NY, OH, OR, PA, PR, RI, VA, Florida (Duke, FPL, TECO) |
No | No, Export Credit | Strongly Recommend: Self-Consumption Storm Mode must be enabled | Minimum 20% required | GA, TX, WV
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OEM Resources
Tesla
Powerwall Modes
Powerwall Modes
Time Based Control
Self-Powered
Backup Reserve
Storm Watch
Enphase
Page 14 for System/Battery operation modes
Enphase Modes
Enphase Modes
AI Optimatization (available in CA)
Savings (available in TOU markets where AI is not. AI is smarter taking into account weather and behavior patterns)
Self-Consumption
Full Backup
Storm Guard
SolarEdge
Homeowner Video tutorial - Battery Modes Setting Overview
SolarEdge Modes
SolarEdge Modes
Maximize Self Consumption
Time of Use
Backup Only
Weather Guard
Policy Resources
Utility Master Guide (NEM policies & utility rate requirements)
CA CSLB Disclosure slide deck (new 1 year savings estimate)
CA CPUC
Solar Energy System Supporting Information (new 1 year savings estimate)