how is the battery connected?
There is a "brain" controller in the middle of the setup. The grid, solar, battery, and house all tie into this controller, which then decides how to connect the mix based on the current production and draw. It works as you would hope it would; solar is the primary energy source when it's producing - with excess charging the battery when needed or else feeding back to the grid when the battery is full. When the house needs more energy than the solar can provide
and the battery has more than 20% charge, the battery provides the power needed*. When the battery drains down to 20%, the draw will come from the grid.
* - Each battery has a cap of 30amps. So when something large (like our hot tub - ~50amp) draws power from the battery, it will draw up to this limit (or just below it, really) and then pull the rest from the grid. If I were to add a second battery, the total possible output would stack - so 60amps for two batteries, 90amps for three, etc. Last I talked to them, they support up to 6 batteries stacked in this way in residential installs. After that, you have to divide your breakers between two different stacks (but really, if you need that much, you're no longer really a "residential" user...).
I read in another sf local forum when grid goes down, then your solar panel generation goes nowhere. cannot go to grid and cannot be used to charge battery.
The grid is just another source of power (or destination of overages). That's how Tesla batteries should work in any install, so it may be that people in the other forum are talking about other backup solutions?
I think net metering forces you to be on time of use plan. does that work out better for you or does it sort of cancel out some of the benefit of solar.
It does, yes. It's not an ideal side-effect, but it makes sense. I factored it into my budget calculations and it still worked out for me, so I installed the solar. Adding the battery to the mix allows me to shift my grid usage to basically any time I want, so I can take advantage of any low cost times if I needed to. The default configuration actually takes care of most of that for me (see below).
For those that are picture-people:
Blue = house draw, yellow = solar production, green = battery, gray = grid
Above the line is positive, below is negative (with "negative battery" being "charge the battery" and "negative grid" being "PG&E pays me"). If you compare the "positive" gray area in the AM (left side) with the "negative" gray area after noon, they roughly represent the same area (ballpark; and that changes by the season). This is the indication that (a) I have enough excess solar production to charge another battery and (b) that another battery would come close to allowing me to only rarely draw from the grid. The payoff on a second battery would be about 5yrs, but we're selling the house, so I won't be doing that. ;-)
The three big spikes are the hot tub heating. You can see in the noon-ish spike that the battery picks up the excess that the solar can't provide.
The smaller spikes after noon are the HVAC (because my wife likes to leave the doors open and forgets to turn off the A/C...).
@Tiger-Paws - I have no plans to leave CA. If I did, it would likely be to somewhere else entirely - New Zealand or the like. But that's another topic... ;-)