Why Energy Storage Systems are Poised for Growth

Residential Energy Storage Systems Enhance Grid Stability

As the installations of commercial and utility scale wind and solar will demand energy storage, grid scale and commercial systems will experience continued growth and lead the overall market. But it is important not to overlook residential energy storage systems.  

Residential communities are integrating solar energy and storage equipment installations because they can reduce or eliminate your monthly utility bill and allow even more flexibility in adjusting demand and supply to reflect market rates, potentially reducing the cost of a battery system by more than 25% compared with a stand-alone storage pack.

Unfortunately, too many residential solar panels can affect how the grid operates and may cause grid instability and imbalance. If one home connects to the grid through solar, there is little to no impact on the electricity grid. But if an entire subdivision gets connected through solar, the resulting electricity flow back to the grid could lead to localized grid imbalances in voltage and frequency.

Installing battery backup systems in homes will not only address the electric grid stability issues, but will also lessen the chances of homeowner electricity loss due to grid issues caused by power outages, hurricanes, snowstorms, etc.

Since 2010, the U.S. Energy Information Administration reports that the amount of storage capacity in the U.S. has increased by a factor of more than 10, doubling in 2020 alone. Energy storage capacity is expected to triple in 2021 and sextuple by 2025, according to Wood Mackenzie, a firm that focuses on energy analysis. The increase in storage capacity comes from battery backup systems people have already installed in their houses.

In August 2020, California faced a massive blackout. There were only a few key hours where peak demand outstripped capacity by about 50 to 100 megawatts. Unfortunately, only some of the 30,000 batteries across the state got called upon for help and the utility failed to make up the shortfall. The situation could have been avoided if there were more battery storage capacity from residential owners. California government officials developed the Self-Generation Incentive Program and its goal is to install one million home batteries by 2028.

Norm Taffe, executive vice president of North American residential sales for SunPower, believes that it is only a matter of time until all new solar installations include a storage component. As battery technology continues to improve, attachment rates will reach 50% in California and 25% across the U.S. in the next two years.

Note: Reprinted from Bill Mitchell