In the transition towards a more sustainable and resilient energy system, battery energy storage is emerging as a critical technology. Battery energy storage enables the storage of electrical energy generated at one time to be used at a later time. This simple yet transformative capability is increasingly significant. The need for innovative energy storage becomes vitally important as we move from fossil fuels to renewable energy sources such as wind and solar, which are intermittent by nature. Battery energy storage captures renewable energy when available. It dispatches it when needed most &#; ultimately enabling a more efficient, reliable, and sustainable electricity grid. This blog explains battery energy storage, how it works, and why it&#;s important.
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At its core, a battery stores electrical energy in the form of chemical energy, which can be released on demand as electricity. The battery charging process involves converting electrical energy into chemical energy, and discharging reverses the process. Battery energy storage systems manage energy charging and discharging, often with intelligent and sophisticated control systems, to provide power when needed or most cost-effective. The components of a battery energy storage system generally include a battery system, power conversion system or inverter, battery management system, environmental controls, a controller and safety equipment such as fire suppression, sensors and alarms.
For several reasons, battery storage is vital in the energy mix. It supports integrating and expanding renewable energy sources, reducing reliance on fossil fuels. Storing excess energy produced during periods of high renewable generation (sunny or windy periods) helps mitigate the intermittency issue associated with renewable resources. Different applications of energy storage also provide grid stability and resilience, as they can respond quickly to grid demand and supply changes.
Here are some of the more prominent reasons that make battery energy storage critically important:
As mentioned, renewable energy sources such as wind and solar are intermittent, producing energy only when the wind blows, or the sun shines. The periods when these sources generate energy do not always align with when energy demand is highest. A battery energy storage system (BESS) allow storing energy when production is high, which can then be used later when demand is high. Integrating renewable energy with storage enables a more significant proportion of energy to come from renewable sources.
As we shift to a renewable energy future, our electrical grid must adapt to handle increased variability and decentralization. A BESS can help stabilize the grid by absorbing excess power during periods of high production and releasing it during periods of high demand. Utilizing a BESS in this way can help reduce blackouts and enable a more consistent grid power supply. This resilience is especially crucial during extreme weather events, which we see more of worldwide.
Peaker plants operate only when there is a high demand for electricity, or &#;peak&#; demand. These plants usually run on fossil fuels and are less efficient than other power generation sources as they emit more greenhouse gases. A BESS can reduce reliance on these plants by storing energy during periods of low demand and supplying it during these peak demand periods.
The electrification of many industries currently powered by fossil fuels is needed to achieve a zero-emissions future. These industries include transportation and heating, moving away from internal combustion engines and gas boilers to electric-powered equivalents, such as electric vehicles and heat pumps. The transition to electrification will increase electricity demand and put further strain on the grid. A BESS can help manage the increased demand and smooth out consumption, enabling the integration of these electric loads into the energy mix without significantly expanding power generation capacity.
An installation of a 100 kW / 192 kWh battery energy storage system along with DC fast charging stations in CaliforniaOn a more localized level, a BESS allows homes and businesses with solar panels to store excess energy for use when the sun isn&#;t shining. Using a battery energy storage system in this way increases energy independence. It reduces reliance on the grid, reducing emissions associated with energy production and transmission.
Battery energy storage is essential to enabling renewable energy, enhancing grid reliability, reducing emissions, and supporting electrification to reach Net-Zero goals. As more industries transition to electrification and the need for electricity grows, the demand for battery energy storage will only increase.
A battery energy storage system (BESS) offer several compelling benefits that make them an increasingly important part of our energy landscape. These include:
A BESS can absorb or release electrical power almost instantly, providing valuable services in balancing power supply and demand, stabilizing the grid, and maintaining a steady frequency.
A BESS can store excess energy produced from renewable energy sources like wind and solar when production exceeds demand and then release it when demand exceeds production, such as when the sun is not shining, or the wind is not blowing. This helps deal with the intermittent nature of these energy sources and makes them more reliable and usable.
By storing energy during low-demand periods and releasing it during high-demand periods, a BESS can help to reduce electricity demand on the grid during peak periods. This &#;peak shaving&#; can reduce the need for peaker plants, which are expensive and often powered by fossil fuels, leading to both cost and environmental benefits.
With the capability to store energy when prices are low and dispatch it when prices are high, a BESS facilitates energy arbitrage, potentially creating significant financial savings or generating additional revenue streams.
A BESS can provide backup power during a power outage, increasing energy resilience and reliability for homes, businesses, and critical infrastructure.
A BESS enables greater energy self-sufficiency for homes and businesses with their own renewable energy generation (like solar panels on the roof). They can store excess power generated from on-site sources for use when needed, reducing their reliance on the grid and allowing more efficient use of the generated power.
With the rise of EVs, a battery energy storage system integrated with charging stations can ensure rapid charging without straining the power grid by storing electricity during off-peak hours and dispensing it during peak usage. Adding a BESS to an EV charging station installation can also stretch the available capacity and help drastically reduce demand charges.
Utilizing a BESS represents a solution to many of the challenges facing the current energy mix today.
An explainer video on how battery energy storage systems work with EV chargingThere are several types of battery technologies utilized in battery energy storage. Here is a rundown of the most popular.
The popularity of lithium-ion batteries in energy storage systems is due to their high energy density, efficiency, and long cycle life. The primary chemistries in energy storage systems are LFP or LiFePO4 (Lithium Iron Phosphate) and NMC (Lithium Nickel Manganese Cobalt Oxide).
A lithium-ion based containerized energy storage systemLithium-ion batteries have a high energy density, a long lifespan, and the ability to charge/discharge efficiently. They also have a low self-discharge rate and require little maintenance. Lithium-ion batteries have become the most commonly used type of battery for energy storage systems for several reasons:
Lithium-ion batteries have a very high energy density. The high energy density means the batteries can store a large amount of energy in a small space footprint, making them ideal for applications where space is at a premium, such as in electric vehicles or energy storage systems.
Lithium-ion batteries are efficient at both charging and discharging, and they can handle relatively high rates for both processes. This makes them excellent for applications where energy must be rapidly discharged or put into storage.
Lithium-ion batteries have a relatively long lifespan compared to many other battery technologies. They can handle a lot of charge-discharge cycles. This long cycle life makes them cost-effective over their lifetime.
Lithium-ion technology is mature and well-understood, which makes it a less risky choice than newer, less-proven technologies.
Despite these advantages, lithium-ion batteries have some challenges, such as sophisticated battery management systems to prevent overheating and maintain optimal battery health. Choosing the right supplier when looking at lithium-ion-based energy storage systems is important. EVESCO&#;s battery energy storage systems utilize an intelligent three-level battery management system and are UL certified for ultimate protection and optimal battery performance.
Lead acid batteries are a mature technology that has been around for a very long time. They are often used in applications where the battery isn&#;t cycled frequently, such as starting cars or emergency backup power.
They are reliable, relatively inexpensive, and widely available. They can also deliver high power. However, lead acid batteries have a lower energy density compared to lithium-ion batteries and a shorter usable lifespan, particularly under deep cycling use. They also require regular maintenance to maintain performance and can harm the environment if not properly recycled.
Power Sonic lead acid batteries being utilized in a battery energy storage systemLead carbon batteries are a type of lead acid battery but include a layer of carbon in the negative electrode that enhances their performance.
They combine the high C rate capabilities of lead acid batteries with the super-capacitive properties of carbon, enabling them to deliver or absorb bursts of energy quickly. Adding carbon also helps mitigate the detrimental effects of the partial state-of-charge operation, improving the cycle life compared to traditional lead acid batteries. They can be affordable for grid-scale energy storage systems, which are not restricted by space, due to their lower cost and deemed acceptable performance characteristics.
While they offer improved cycle life compared to traditional lead acid batteries, they still don&#;t match the lifespan of lithium-ion batteries. They also share the environmental concerns of lead acid batteries, requiring careful disposal to avoid lead contamination. Additionally, while including carbon improves their performance, they still have lower energy density than lithium-ion batteries.
In flow batteries, rechargeability comes from two chemical components dissolved in liquids inside the system. The most common type is the Vanadium Redox Flow Battery.
Flow batteries can store large amounts of energy and are less sensitive to temperature variations. They have a long lifespan, and their energy capacity (kWh) can be easily increased using larger electrolyte storage tanks. Flow batteries are more complex and expensive to install and maintain than the likes of lithium-ion. The rarity and price volatility of vanadium can also be a concern.
Vanadium-redox Flow Battery A vanadium-redox flow battery is a type of rechargeable battery that uses vanadium ions in different oxidation states to store energy. It is commonly used in large-scale energy storage applications and offers long lifespan and scalability.Sodium-Sulfur batteries operate at high temperatures and are capable of daily deep cycling. They can typically used for grid storage applications. Due to their high operating temperatures (typically around 350°C), they require significant safety measures and thermal management systems. Due to their size and complexity, they are more suitable for large-scale applications (multiple MWhs) rather than smaller-scale commercial or residential use. NaS batteries are not currently a widely popular choice in the market.
Solid-state is an emerging battery technology that utilizes solid electrodes and a solid electrolyte instead of the liquid-based electrolytes found in other batteries. They promise significantly higher energy density, improved safety (due to the non-flammable solid electrolyte), and longer lifespans. They also have the potential for faster charging times. However, as of now, they are still in the early stages of development and are yet to be commercially available on a large scale. The manufacturing process is also currently complex and costly.
Differences between solid-state batteries and conventional lithium-ionEach of these battery types has its advantages and disadvantages. The best choice of technology will depend on the specific needs of a given project, including factors like cost, required capacity, discharge duration, and physical space available.
Battery energy storage systems can be found in applications across residential, commercial, and utility scales. Each with different needs, capacities, and applications.
For individual households, residential battery storage usually ranges from 5 to 15 kWh &#; enough to offset peak usage periods or provide backup during power outages. They&#;re typically paired with rooftop solar installations, allowing homeowners to store excess solar power for use during the night or cloudy days. A residential battery energy storage system can provide a family home with stored solar power or emergency backup when needed.
Commercial energy storage systems are larger, typically from 30 kWh to kWh, and used in businesses, municipalities, multi-unit dwellings, or other commercial buildings and applications. These systems can reduce energy costs by lowering demand charges (fees based on the highest rate of energy use during a billing period), load shifting (from high on-peak electric prices to lower cost off-peak prices), providing backup power, and allowing businesses to participate in demand response programs. An example is EVESCO&#;s 500 kW 500 kWh battery storage system installed at Power Sonic in Nijkerk, The Netherlands, which can integrate with on-site solar and intelligently manage energy use across the building and commercial loads, reducing peak demand and generating energy cost savings.
A containerized 500 kW / 500 kWh battery energy storage system installed at Power Sonic in The NetherlandsAt the far end of the spectrum, we have utility-scale battery storage, which refers to batteries that store many megawatts (MW) of electrical power, typically for grid applications. These large-scale systems can provide services such as frequency regulation, voltage support, load leveling, and storing excess renewable energy for later use. A prominent example of this is the Hornsdale Power Reserve in South Australia. This 150 MW/194 MWh installation has brought stability to the region&#;s grid and saved millions in grid maintenance costs.
Hornsdale Power Reserve battery energy storage installationA battery energy storage system&#;s capacity and specific applications can be customized to fit the user&#;s needs, whether a single-family home, EV charging stations, or a national electric grid.
Forecasts suggest massive growth ahead for battery energy storage installations as emerging technologies and markets converge. One estimate sees the installed grid-scale battery storage capacity expands 35-fold between and to nearly 970 GW. With their immense potential for enabling renewable energy and strengthening grids, realized battery storage systems will only grow in significance for a cleaner and more electrified future.
12 Min. Read
This article was originally published on February 8, and was updated on November 14, .
Adopting clean energy solutions, such as newer energy storage batteries and electric vehicles, is a huge step toward eliminating your fossil fuel dependence. Batteries as a source of future home power are now more accessible than ever. They&#;re an important part of the energy transition, and the technology has grown by leaps and bounds over the past decade and now shapes the future of electrification.
Energy storage is not new. Batteries date back to the 19th century. While early batteries used physical storage in a way that is similar to a capacitor, the technology quickly evolved to leverage electrochemical elements capable of more efficiently storing energy.
A battery is essentially a storage medium that uses two materials to facilitate electron transfer. When a battery receives a charge, electrons travel from the cathode to the anode via a chemical reaction. When a device draws power from the battery, the charge stored in the anode travels back to the cathode in a reverse reaction.
As of , the battery market was worth over $105 billion, and it is only increasing in value. Experts believe this industry will grow at a compound annual growth rate (CAGR) of more than 15% over the next decade, with some key trends shaping the future of the industry.
Using batteries to power the home is increasingly easier, thanks to the prevalence of lithium-ion (Li-ion) batteries. The growth of electronics industries and the rise of electric vehicles (EVs) have largely contributed to the development of cost-effective energy storage in the form of Li-ion batteries, and experts believe demand for Li-ion batteries will grow elevenfold before .
As electrification accelerates, battery manufacturers are increasingly looking for new battery materials and technologies.
Some of the latest innovations include iron-air batteries, solid-state energy storage, or lithium-ion batteries that eliminate the need for cobalt. Researchers have also found a way to use nanomaterials to build web-like cathodes and anodes that can hold more electrons.
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Utilities are leading the way when it comes to developing battery projects on a larger scale. During Q2 , there were over 5,100 megawatt-hours added to existing grid-scale storage capabilities due to battery storage expansion.
While there are many homeowners interested in using batteries to power a home, often in conjunction with solar arrays to create a microgrid, grid-scale projects are currently the main sector driving growth for the battery industry. Electricity consumption could increase by 15% by in the U.S., and these grid-scale battery projects will play a crucial role in developing a strong infrastructure that can sustain the growing demand for electricity across the country.
Modern battery solutions increasingly rely on smart technology, including software and sensors. These smart technologies can manage interactions with the grid, protect the battery from charging fluctuations, and balance loads when drawing power from a battery.
The smart battery market was worth over $33 billion as of , and these innovations can contribute to delivering a user-friendly and intuitive experience if you&#;re thinking about using batteries to power your home.
In the &#;old days,&#; people kept battery-powered flashlights and radios (and extra batteries) around for emergencies. Many also kept environmentally unfriendly and potentially dangerous gas-powered emergency generators around.
Modern energy storage systems accelerate the effort to power the whole house, offering more sustainability as well as economic, social, and environmental benefits. They safely supply electricity on demand, providing greater flexibility and power reliability, and can be coupled with other energy transition solutions such as bidirectional charging from electric vehicles, smart panels, and solar power arrays. Battery storage solutions can also reduce daily expenses for energy consumers, provide security and energy in times of power outages, and lessen the climate impact of power generation.
A growing number of homeowners are already investing in energy storage solutions. While utilities remain the main users of batteries for grid-scale applications, the residential battery market is growing at a CAGR of more than 17%.
If you&#;re wondering whether using batteries to power your home makes sense, these use cases will give you a better idea of the benefits.
Close to half of homeowners say they are worried about weather-related power outages, and with extreme weather and power outages becoming increasingly common, this is not with good reason.
Recent data shows that power outages tend to be more frequent and last longer, highlighting the need for a backup solution. Between rising temperatures and the aging infrastructure, this issue will only worsen. Cyberattacks on the energy infrastructure are another growing concern.
Using batteries to power the home increases resiliency in the event of power outages and also facilitates access to power in the context of off-grid systems. Homeowners installing home energy systems in rural areas can greatly benefit from investing in a whole-home backup solution since their local infrastructure is more likely to be dated, and repairs can take longer when fewer consumers are affected.
The residential solar market experienced year-over-year growth of 30% in Q2 . More homeowners are investing in clean energy solutions, and adding a storage system multiplies the benefits.
One of the main downsides of solar energy is that electricity production isn&#;t continuous and without an energy storage solution, electricity produced can only be used at the time of generation. Pairing a solar array with a battery system addresses this issue by making energy available 24/7, regardless of the output fluctuations of the solar panels.
Battery storage and solar integration also make solar array owners more independent from the grid. Incentives from states and utilities have contributed to driving solar adoption by encouraging homeowners to invest in solar panels and sell their surplus energy at a competitive rate. However, these solar incentives could come to an end. California reduced solar incentives being offered to homeowners who sell solar energy back to the grid, and more states could follow suit. If you&#;re looking to take advantage of available funding and incentives, it&#;s important to ensure you track any deadlines or funding limits.
Using a battery to store the energy produced for future use could be a more cost-effective model in an environment with reduced incentives.
Microgrids and nanogrids are emerging as solutions to building a modern power infrastructure that addresses a growing demand for electricity.
With almost 700 microgrids across the U.S., these systems are already empowering communities by giving them access to reliable energy. On a smaller scale, microgrids could soon become a more common way to power homes, multi-family buildings, and businesses. Experts estimate the global microgrid market will be worth over $60 billion by .
These systems integrate local sources of energy, storage capabilities, an interface with the main power grid, and smart technologies that manage the energy draw.
Nanogrids and microgrids are flexible systems that adapt to demand in real-time by prioritizing the most affordable or cleanest source of energy. These systems will play a crucial role in supplementing the main power grid and making clean energy widely available.
As the nanogrid and microgrid markets grow, using batteries to power the home as part of a larger energy system will become a common practice.
The demand for electricity will increase over the next few decades, largely due to EV adoption and electrification. EVs make up over 8% of new car sales, but they could represent 13 to 29% of new sales by .
As we move away from fossil fuels, we&#;re also seeing a growing number of homeowners ditching gas-powered appliances and replacing them with electric alternatives. In this context, using batteries to power your home has several benefits.
As outages continue to become more frequent and last longer, finding yourself unable to charge your EV due to a blackout is a genuine concern and a potential barrier to adoption. A residential battery solution would give you 24/7 access to a reliable source of power, eliminating this barrier.
Many utilities are responding to higher demand levels by adopting time-of-use pricing models. These models implement a higher rate during peak hours to discourage energy usage when the infrastructure struggles to keep up with the demand.
As EV adoption continues to grow, TOU models will likely result in high energy prices in the evening when drivers get home and plug their vehicles in. A battery system will give you the flexibility to charge your EV when needed without having to pay high TOU rates, and you can even create a customized battery charging schedule to fill up your battery during off-peak hours.
Bidirectional charging is still a new technology, but it will become more common in the near future as more auto manufacturers integrate this technology into new EV models. This technology allows EV owners to discharge their vehicle&#;s battery into their home, a battery storage solution, or even into another EV when a source of power is needed.
Additionally, some utilities allow homeowners to sell power back to the grid when demand is high, allowing you to charge your EV overnight and sell the stored energy back to the grid at a profit during peak demand in the day.
Having an at-home battery solution means that you can turn your EV into a source of power and discharge your vehicle&#;s battery when you need an emergency backup or simply want to avoid paying high TOU rates.
This technology can help you get more value out of your EV and offset the cost of ownership even further by reducing your energy bills.
Federal and state incentives are contributing to the growth of the energy storage market via investment projects. The Bipartisan Infrastructure Bill over $6 billion to finance battery manufacturing development as well as EV battery recycling projects. At the state level, several states have established development targets and have been actively investing in creating a resilient energy storage infrastructure.
These initiatives include a mix of grid-scale projects and residential incentives. For instance, New York plans on adding six gigawatts of storage before , and Connecticut is currently working on adding 1,000 megawatts of storage by .
When it comes to regulations, the emphasis is on managing battery waste and reducing fire hazards. The National Electric Code added Article 706 in to set a standard for safe energy storage. Some states and local governments have also adopted new rules. New York and Alabama are among the states that have passed regulations to address the growing issue of battery waste, and New York City is currently looking into adopting rules to reduce fire risks.
Regulations are still limited, but it&#;s likely that we&#;ll see a regulatory framework appear over the next few years as the battery market continues to grow.
Energy storage batteries come in a variety of options. The marketplace segments them based on the following:
Ownership by customer, third party, or utility.
Connection on- or off-grid.
Energy capacity (ranging from below 1 kWh to over 18 kWh). It&#;s possible to combine multiple batteries to enhance storage capacity.
Application, such as residential, commercial, or utility-owned.
Battery type. Lithium-ion batteries are currently the most common, but other technologies could become more popular in the near future.
If you&#;re interested in using batteries to power a home, these industry leaders are a great place to start your search.
Keep in mind that you can offset the upfront cost of these solutions by taking advantage of the Federal Investment Tax Credit. This credit will cover up to 30% of the initial cost, and you might qualify for additional incentives at the state or local level.
The Tesla Powerwall is a popular home battery solution. With a 13.5 kWh capacity, these battery systems are ideal for the needs of most households, and you can opt for the Powerwall 3 to build a scalable system with more units if needed.
The 10-year warranty is a plus, and the user-friendly app will give you complete control over this performing energy storage solution. Tesla Powerwall can also detect outages automatically and switch to battery storage when needed.
Generac offers a flexible residential battery solution that uses modules to gradually increase its energy storage capacity. The smallest system uses three modules to deliver 9 kWh of storage and a continuous output of 4.5 kWh. This battery solution comes with PWRmanager, an advanced load management device that prioritizes key circuits during outages.
The Panasonic EverVolt is a flexible home battery solution that can draw power from AC or DC sources. It comes in three sizes, including 9 kWh, 13.5 kWh, and 18 kWh. You can stack up to four units to increase your system&#;s capacity. Integration with Panasonic solar panels is a plus, and these batteries come with a built-in solar inverter to streamline the installation process.
LG is an excellent choice if you&#;re looking for a reputable manufacturer that offers excellent service and maintenance. Thanks to the battery system&#;s modular design, you can easily remove components for maintenance or future upgrades. LG Prime comes in 19.2 or 32 kWh capacity, depending on your needs.
The SunPower SunVault battery system is a user-friendly choice. The companion app adds value by letting you easily customize when you charge the battery or draw power. The 10-year warranty also makes SunVault an excellent investment.
Homeowners need to understand their energy consumption. This includes both current and future consumption if you plan to add another EV or invest in another electrification project.
Once you have a better understanding of your energy needs, you can start comparing residential battery solutions to select the right fit. Then, you can begin to consider what type of support you need to add new storage or charging capabilities and, over time, to maintain them.
Installing a home storage battery setup is complex. The battery system needs to work with your home&#;s circuit panel, distribute power through your circuits, be properly mounted, and not be an eyesore. A critical load panel is also recommended to manage usage in emergencies. There are other important details, such as building codes and permit requirements.
Even if you are an electrician or engineer, preparing your home to charge an EV or retain and use stored energy requires advanced expertise and experience in dealing with EV charging technology. That&#;s why so many homeowners and firms choose Qmerit for their electrification projects.
With over 269,000 EV charging station installations, more than 18,500 battery storage installations, and 53,000 solar system integrations, and industry-leading satisfaction scores, Qmerit is a national leader in electrification. From installing Level 2 home charging stations and energy storage batteries to integrating solar power to working with the latest energy-efficient technology, no one is more trusted or experienced in energy transition technology solutions and implementations. With the largest network of certified installers experienced in energy transition technologies throughout the U.S. and Canada, Qmerit connects you with the best available contractors to install and maintain your energy storage batteries and other electrification technologies.
To find out more about using batteries to power a home and embrace a more resilient and sustainable energy future, contact Qmerit today.
President, Qmerit Solutions and Commercial Electrification
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