Batería virtual

Why Are You Being Paid So Little for Your Virtual Battery?

If you’re one of the many virtual battery users wondering why your earnings have significantly decreased, you’re not alone. The answer lies in how virtual wallets operate and the current dynamics of the electricity market. In this article, we’ll explain the reasons behind these low payments and why at Ubora we believe that physical batteries are a superior option.

Virtual Batteries: Concept and Payment Mechanism

What is a Virtual Battery?

A virtual battery is an advanced system that allows storing electrical energy generated during low-demand periods and then using or selling it when demand is high. Unlike physical batteries, virtual batteries do not store energy physically; instead, they manage the flow of energy intelligently through the electrical grid. This innovative concept is essential in the transition towards more efficient and sustainable energy consumption. However, it is not always the most profitable or reliable option for consumers.

How Do Payments Work?

The payment structure of virtual batteries can be complicated and is not always favorable for users. Generally, the virtual wallet platforms that manage your virtual battery pay a percentage of the market price of the stored energy. This percentage is usually around 90%. In practical terms, if the market price of the energy is 100 monetary units, you would receive 90 units. However, this structure is affected by various market dynamics that can significantly reduce your earnings.

The Reality of the Current Electricity Market

Low Prices During Midday Hours

One of the main reasons your earnings have decreased is due to electricity market prices during the midday hours. During this period, the supply of energy, especially from renewable sources like solar, is very high. This causes a decrease in energy prices in the market, often reaching nearly zero or even negative prices. This phenomenon is a direct consequence of the increasing penetration of renewable energies in the energy mix and the lack of sufficient demand to absorb all the available supply during these hours.

Impact on Your Payments

Due to this pricing dynamic, even if your virtual wallet pays you 90% of the market price, if the market price is zero, 90% of zero is still zero. This means that despite having a virtual battery and contributing positively to the energy system, you might not be receiving any income at certain times of the day. This scenario can be frustrating, especially when users expect to receive a financial return on their investment in energy storage technologies.

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Advantages and Disadvantages of Virtual Batteries

Advantages

  1. Lower Initial Investment: There is no need to purchase a physical battery, significantly reducing initial costs. However, the profitability can also be lower compared to that of a good physical battery.
  2. Logistical Ease: You don’t need a physical space to store the battery, nor do you have to worry about maintenance, which simplifies its use.

Disadvantages

  1. Dependence on the Provider: Negotiating with the energy provider is necessary, and the agreements are not always beneficial for the consumer. Often, the energy is paid at a price lower than the production cost or even below the compensation price for excess energy.
  2. Lack of Ownership: The virtual battery is only available for the duration of the contract with the energy provider or the company managing the battery.
  3. Limited Accessibility: In the event of blackouts or network connection issues, you will not be able to access the accumulated energy.
  4. Price Variability: The price of energy can fluctuate depending on the market and the owning company, affecting the profitability of your virtual battery. The times of highest energy generation, when solar panels produce the most excess, are also the times when energy is paid at a lower price.

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How to Avoid These Drawbacks?

Market Monitoring

To maximize your earnings, it’s crucial to stay informed about fluctuations in the electricity market. Many virtual wallet platforms offer monitoring tools that can help you predict the best times to store and sell your energy. These tools may include price alerts, demand and supply forecasts, and market trend analysis. Utilizing these tools will enable you to make informed decisions and optimize the use of your virtual battery.

Diversification of Use

Consider diversifying the use of your virtual battery. Instead of selling all stored energy, you could use part of it to reduce your own consumption during peak price hours. This may be more profitable than selling energy at low prices, as it allows you to save on your electricity bill and make better use of your storage investment. Additionally, diversifying your energy use can help you be more resilient to market fluctuations and have more direct control over your energy costs.

Negotiate with Your Provider

If possible, try to negotiate better terms with your virtual wallet provider. Some platforms may offer more favorable conditions or fixed rates that are less subject to market fluctuations. Research and compare different providers to find the option that best suits your needs. Negotiating more advantageous terms may include agreements on guaranteed minimum prices, dynamic tariffs, or even additional incentives for contributing to network stability.

Explore New Technologies

Technology is constantly evolving, and the energy sector is no exception. Research and consider investing in new energy storage solutions that can offer better returns and greater flexibility. For example, next-generation batteries, advanced energy management systems, and integrated renewable energy solutions can provide greater economic benefits and operational efficiency. Stay abreast of technological innovations and evaluate how they can be applied to your specific situation.

Why Do We Recommend Physical Batteries at Ubora?

At Ubora, we firmly believe that physical batteries are the best option for our customers. Here’s why:

  1. Energy Independence: With a physical battery, you have full control over your energy storage. You’re not dependent on external suppliers or fluctuations in marketing agreements.
  2. Guaranteed Accessibility: In the event of blackouts or network issues, your physical battery continues to provide power, ensuring that your home or business remains operational.
  3. Cost Stability: Although the initial investment is higher, a physical battery protects you from market fluctuations and offers long-term cost stability.
  4. Durability and Upgradability: Our Sonnen and Sunpower physical batteries are designed to be durable and of high quality, with maintenance and upgrade options ensuring a long lifespan and continuous efficiency.

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In summary, the low payments in virtual batteries are a direct consequence of the payment structure of virtual wallets and the current conditions of the electricity market. Although this situation may seem discouraging, understanding the market dynamics and exploring alternatives can help you maximize the benefits of your virtual battery. However, at Ubora, we believe that physical batteries offer a more reliable and cost-effective long-term solution. Stay informed, diversify your strategies, and always look for the best option for your energy needs. Adapting to changing market conditions and leveraging technological opportunities will allow you to get the most out of your investment in energy storage.

For more information, email us at sol@uborasolar.com or call us at +34 683 300 529.

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