VA,
Well, my use case may be a bit different than most. I haven't even analyzed the SGIP rules as others here have. But here is my shot at explaining why I don't need any battery storage...
The house where we have solar panels installed uses about 12 kWh of electricity per day. Not much variance between winter and summer due to mild climate, and the water heater and furnace use gas. In the winter the 4.4kw system generates a bit more power than we use on a monthly basis. In the summer it generates about 2x the power we use. Because SCE has net metering, we only get charged for the "net" power we end up using. And since we always generate more than we use, the monthly bill from SCE is a flat ~$10. At the end of the year, we get a check back for about $70 for all the excess power that we generate. If we had battery storage, we could store some of the excess power. But with the net metering we have, there is no reason to do so. I would imagine most people don't generate as much as they use in total, or don't have net metering, which might push them to add some storage.
Without getting into an insanely high level of detailed analysis, perhaps someone could take a shot at explaining a use case or two of why someone would need to have battery storage?
Case #1: If you don't have net metering, I believe that even if you overall generate more power than you use, anytime that you are actually drawing power from the grid you may be getting charged for it. Do I have this right? In that case, if you can store PV generated power in a battery you can avoid the cost of pulling grid power, and the cost savings comes down to "what you pay for drawing grid power versus drawing power from the battery system, and the cost of the battery system".
Case #2: If you have very unreliable electric power, and want to use the battery as a backup source. Whether that is for only critical loads or running the full house are two separate cases I believe.
Case #3: You have an EV, and charging it uses lots of power during specific periods. This does tie in with Case #1 above too. In our specific use case, our EV's both only have 27kWh batteries. These only charge at the house maybe 10 times per month. On days we do charge, we draw more power than we generate, but the net metering allows us to offset that power draw with days that we generate more than we use. I would imaging if you have one or two Teslas and your use case is that you charge at night, then maybe you need at most somewhere around 120kWh of power to top them both off. If you don't have net metering, then you maybe can get low off peak rates for that 120kWh, or maybe you can't since it varies by utility. In Pasadena (municipal utility, not where the house is located), I'm paying $0.26 any time of day for delivered power. If I were charging two Teslas at 120kWh then my cost would be $31.20 every time I do that. Depending on how much you drive, maybe you do that 4-6 times per month. So the EV's cost $187 per month to run in electricity. If your PV system and battery storage can supply that, then you save $187 per month. The equation then becomes "What does it cost to do the PV and battery, or just add the battery to existing PV, to see whether it makes sense to offset the $187 I'm paying for EV charging?" Is that basically correct?
RT
And lastly (added), the ensuing required "deep dive" into the numbers that you see going on here is for each individuals specific use case, also taking into account their charges based on utility provider. The outcome of this being the "pay back" period of when they expect the installation cost of whatever they have installed to be exceeded by the cost of power they would have otherwise consumed.
Hopefully this isn't completely divorced from reality
Apologies if it is