Energy storage is heralded as the critical technology that will make
widespread adoption of renewable energy possible. Storage bottles
sunlight, addressing a key drawback to solar energy — that it can’t
provide electricity when the sun isn’t shining. Energy storage also
cures additional utility ailments from grid resiliency to power
smoothing. Due to a rise in incentives and a drop in storage costs, the market for this storage is heating up in the U.S. The market is expected to grow 250 percent just this year.
California is leading the energy storage market thanks to Assembly
Bill 2514, which requires state utilities to procure 1.3 GW of storage
by 2020. Now California’s three largest investor-owned utilities,
Southern California Edison (SCE), Pacific Gas and Electric (PG&E)
and San Diego Gas & Electric, are installing cost-effective storage
solutions. SCE, for example, invested in a wind farm in the Mojave
Desert equipped with giant lithium-ion batteries. The East Coast is
following California’s example. New York recently budgeted $25 million
to promote storage development.
While the utility-scale market gets most of the attention, a quietly
growing storage market segment with a lot of potential is residential
solar. After all, residential solar is a fast growing solar market segment — increasing 49 percent in 2014. Unsurprisingly it offers immense opportunity for storage.
Residential PV panels produce ample electricity for customers when
the sun is shining, but on cloudy days and at night energy generation is
low. Saving a surplus of solar energy from times of peak sunlight helps
consumers maximize their consumption of self-generated power. This is
particularly appealing and important in states where net metering is
either unappealing economically or prohibited, meaning homeowners cannot
sell their surplus solar energy back to the grid. Arizona is a state
where storage solutions are that much more appealing because net
metering is coupled with a fee.
Areas with high amounts of residential solar penetration can put a
strain traditional utility power supply controls, causing voltage
disturbances and other power quality concerns. Residential energy
storage can help regulate the power supply and smooth the quantity of
electricity sold back to the grid. This is critical in markets like
Hawaii, where one out of nine homes is equipped with a solar PV system,
according to U.S. Energy Information Administration.
Energy storage can also provide back-up power in case of an
emergency, like natural disasters that may damage power lines and cut
off the electricity supply. During Hurricane Sandy, thousands of solar
systems sat idle, unable to provide electricity without connection to
the grid. With storage, those solar systems could have provided much
needed off-grid support.
Traditionally, energy storage solutions have required a lot of space.
For example pumped storage, an effective and historically popular
technology, can only integrate with large utility-scale power
generation, like dams. Flywheels, which utilize a quickly spinning rotor
to store energy, also require more space and typically available for
residential solar systems. With advancements in electric vehicle
technology the cost of more compact lithium-ion batteries has fallen
dramatically. The size of these batteries is perfectly suited for
residential PV systems.
Many market players are eager to capitalize on the growing
residential solar market. Just last month, Tesla unveiled its
residential storage unit and announced partnerships with solar companies
SolarCity and Sunrun. Sungevity teamed up with Sonnenbatterie and Trina
Solar to launch its own residential battery. In Europe, Mercedes-Benz
released a storage solution for residential and commercial applications.
Solarwatt, a company owned by a major BMW shareholder, the Quandt
family, will also offer a residential behind-the-meter solution. Both
Solarwatt and Mercedes-Benz introduced their storage solution this month
at electrical energy storage — Europe, collocated with Intersolar
Europe. We’re off to the races with residential energy storage. Experts
predict costs will continue to fall, accelerating storage integration
with solar systems.
If you’re looking to learn more about energy storage, Intersolar North America (San Francisco from July 14-16) is hosting a new special exhibition, ees (electrical
energy storage) to showcase the latest technologies and policies in the
energy storage value chain. Intersolar North America also has a special
storage conference track for professionals interested in learning the
latest insights from leaders in the industry. Hope to see you there.
http://www.renewableenergyworld.com/articles/2015/06/the-rapid-rise-of-residential-energy-storage.html