When it comes to Solar Storage, here are six great questions to ask
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Why is energy storage important?
Electric utility providers are employ public safety power shutoffs to help mitigate loss and conserve energy, as we learned last summer in California due to the heat and wildfires and just this past February in Texas with the freezes. For safety reasons, solar panels installed must also turn off when the grid goes down, which has led many solar-powered homeowners to seek a product that can keep their homes powered during an outage. Batteries provide a happy glimpse into a future in which utilities are less reliant on big power plants in favor of a network of distributed energy resources (known as DERs) across their grid.
How does solar + storage work during an outage?
A microgrid must be established in order to power a home during an outage. A microgrid is a closed system that mimics the power provided by the utility grid. When a grid outage is detected, the microgrid kicks on in just milliseconds (the lights in your home will barely flicker). To preserve the battery to power the most important things in the home like the refrigerators, lighting and pumps. Non-essential appliances like AC units, which use a lot of energy, are usually programmed to turn off during these events. The goal is to create a harmonious system that can last a few hours -- or in the worst case a few weeks -- until grid power is restored.
Does storage benefit the grid?
Every solar power system, regardless of storage, benefits the grid and eases strain on utilities. Storage supercharges that benefit by lessening the load. In the future, utilities are considering ways to interact with the storage customers more actively to provide additional grid stability. This strategy will be key as renewables become more popular.
Is my existing Solar system compatible with Battery Storage?
Yes, Battery Storage is compatible with your current system and can always be added on to provide yourself with backup power.
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Why does storage costs so much?
Every home is different. Storage requires an even deeper dive into the anatomy of homes to understand the electrical wiring of the home and how the homeowners use power. Each home requires custom installation as well as robust and reliable hardware and energy management systems. Thankfully, the cost of the equipment itself has fallen dramatically. Similar to solar power, the costs of these custom installations installed by licensed professionals -- are greater than the equipment cost itself.
What&#;s the value of storage?
Unlike the clear economics of solar panels, the value of solar + storage is spread across additional considerations like grid reliability, utility programs and the emergency needs of the homeowner. So at this time, the value of storage is unique to the homeowner. That said, utility companies are also seeing the benefit of storage to the grid. It&#;s foreseeable that they will continue to modify their policies to incentivize homeowners to install storage in conjunction with their solar. This can be seen today in California, with utilities offering daily incentives for solar + storage homeowners to use their battery power from 4 p.m.-9 p.m. when utility power is at peak pricing.
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The last thing to consider is how a consumer might arrange for the &#;customer-side&#; cost of participating in demand programs. Enrollment in a simple program that is a good fit for a site&#;s load pattern and curtailment capabilities may not cost anything. More elaborate solutions that include generators and other resources can be purchased outright, but a great solution for many consumers is to acquire these resources, maintenance free, through multiyear leases. Depending on available demand programs, utilities and others may be able to provide solutions that not only create a valuable revenue stream, but also create a backup power solution for grid outage response at the same time.
While the definition of a &#;microgrid&#; is somewhat flexible, a robust solution for demand response opportunities may indeed be a microgrid that provides response, control and data for your site. This concept of exporting power to the grid can also be an opportunity for the utility consumer. If the consumer owns or leases the generators, the site can be enrolled in pertinent programs or just sell power into the real-time market. Generally, these opportunities only occur in the deregulated markets and require a third party to schedule the exports and serve as a clearinghouse for revenue exchanges.
These questions may be daunting, and you may not want to tackle this on your own. The process of choosing the right demand response program for your microgrid requires some expertise, and a company like Mesa Solutions can help guide you through the process of choosing what is right for you.
Tom Poteet is vice president of corporate development at Mesa Solutions.
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