Home energy management systems vs. solar: Which comes first?

  • Homeowner Insights
What energy-saving benefits will you get with a HEMS?
November 21, 2023 / 5 min read

Rooftop solar panels and home energy management systems (or HEMS) pack a one-two punch to help you get the most from your home energy. First, solar panels provide a free source of clean power independent from the grid. That helps you lower your energy bills and protect you from fluctuating energy prices. When you add a HEMS, you can unlock even greater benefits. A HEMS helps you optimize your home energy use, which makes the electricity generated from your solar panels last longer. 

You don't need a HEMS to install solar panels, and you don't need solar panels to benefit from using a home energy management system. If you think you want to install both, however, you can get some extra benefits from using a HEMS first. 

Let's take a closer look at what a HEMS does, why it pairs so well with solar, and the advantages of using a HEMS before you add solar to your property. 

What is a home energy management system?  

Home energy management systems include both hardware and software that capture and analyze data about how your home uses energy. The hardware is a smart panel that either replaces or adds onto your electrical panel. The software is an app that displays your household energy data. Over time, a HEMS learns your patterns and preferences, making automatic tweaks to your energy usage to keep your bills down and your home comfortable.

The data a HEMS monitors includes how much energy your household uses and when, how much power specific appliances consume, and how much electricity your solar panels are producing. It combines this with external data, such as the weather forecast and utility prices, to reduce energy waste. To put it simply, a HEMS makes sure you're never using more energy than you really need.

The benefits of home energy management systems with solar

When paired with solar, a HEMS balances the supply of power from your panels with your energy demands. It will optimize energy efficiency so that your solar electricity meets as much of your energy needs as possible. That's important because it keeps your power bills lower and your home comfortable.

On rainy or cloudy days when your solar panels produce less power, a HEMS automatically adjusts how your home uses energy. It will try to make sure your solar power goes farther so you can avoid buying electricity from the grid. 

If you're on a time-of-use (TOU) rate with your utility company, you pay more for electricity when demand for power peaks. A HEMS will make quick energy decisions on your behalf (e.g., switching off energy-intensive appliances) so you don't need to track fluctuating energy prices and make adjustments manually. Instead, your HEMS will ensure your solar power covers your needs when energy prices rise. That way, you can avoid paying for electricity when it's most expensive. 

HEMS don't just optimize your solar power. They work with home battery systems, too. If the power goes out, for example, your HEMS will automatically turn off non-critical appliances (or make recommendations to that end). That will conserve your stored power so you can keep your lights on for longer, even if the grid is down.

Is it better to install a HEMS before or after solar panels?

No matter what order you follow, using solar and a HEMS together can unlock big benefits. Let's take a closer look at both options.

Installing a HEMS before solar

Installing a HEMS first will give you a chance to better understand how your home uses energy. That's really useful information for a solar installer — they'll use that data to design a solar system that accurately meets your home energy needs. They'll be better able to choose the right type and number of solar panels, for instance.

If you start using a HEMS before solar panels, you'll also be ahead of the game after installing solar. The free, renewable energy from your solar panels will go farther because your home will be using energy efficiently. 

Installing a HEMS after solar

If you start using a HEMS after installing solar panels, you're still going to see big benefits. The HEMS will track your household energy patterns and monitor how much power your solar panels are producing. It will even know whether that production may be affected by the weather. Your HEMS will then use this data, plus other factors, to make adjustments and recommendations that ensure your solar power lasts for longer. That way, you're only paying high prices for grid electricity when it's absolutely necessary.

If you have the option, it might make more sense to install a HEMS before solar. That way, your solar system will be as tailored as possible to your home energy use. But either way, there are so many benefits to pairing a HEMS and solar. They'll help you keep your power bills down and use your energy as efficiently as possible. 

HEMS and solar panels are part of a total home energy solution that will boost your savings and your sustainability. Learn more about Panasonic's home energy solutions and see how you can start saving.

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