There’s a clear uptick in distributed energy resources, so where are these markets finding the financing to expand?May 24, 2017
Moixa Smart Battery for the home. Credit: Moixa.
The global energy storage industry will expand rapidly in the next few years, as it moves to support solar and other infrastructure that is growing more and
more complex.
more complex.
Utility-scale storage will be a significant part of the energy storage market’s expansion, but, according to a March report by Navigant Research, recent market
developments include an uptick in projects in the distributed sector, particularly for solar + storage microgrids and the commercial and industrial segment.
Navigant expects global annual deployments of residential energy storage to increase by about 3.7 GW by 2025.
With interest in energy storage growing within the commercial and residential segments, how are markets moving to assist customers as they look for
financial options to install these next-generation energy systems?
With interest in energy storage growing within the commercial and residential segments, how are markets moving to assist customers as they look for
financial options to install these next-generation energy systems?
Storage Costs Declining But Still Higher than PV Costs
Behind-the-meter energy storage prices are declining, but they are not so low that it’s an easy buy for businesses and the general public.
A National Renewable Energy Laboratory (NREL) report released at the end of March found that the cost in 1Q16 for a 5.6-kW PV+storage system with a
3-kW/6-kWh AC-coupled battery was $29,568. The PV modules accounted for about $3,600 of that total and the battery $3,000. The cost for a
5-kW/20-kWh battery on a similarly sized PV system was $10,000 for the battery alone. The report puts total hardware costs in 2016 for a standard
3-kW/6-kWh residential storage system at between $6,530 and $8,560.
In the U.K., home battery provider Moixa was offering a solar+storage package last year for £4,995 (US$6,240). That installed price includes a 2-kWh
battery and a 2-kW solar system. Moixa also offers standalone home battery systems of 2 kWh and 3 kWh starting at £2,500.
Incentives
Incentives for storage in the U.S. are mostly limited. The 30 percent federal solar investment tax credit applies to energy storage, and while a handful of states
have incentive programs for non-residential behind-the-meter storage, even fewer have programs for residential storage.
Energy storage is included in Calif.’s self-generation incentive program, but residential installations have been limited under the program. According to
NREL, Calif. regulators last year amended the program to reserve 15 percent of total storage allocations for projects < 10 kW, making about $9M available
annually for that segment through 2019.
In Vermont, Green Mountain Power last year started offering incentives for installation of Tesla’s home battery. Leases are available for about $40/month, and homeowners who purchase the system can earn a bill credit of about $32 per month.
There is more in the original .pdf file: