Sometimes two is better than one. Coupling solar energy and storage technologies is one such case. The reason: Solar energy is not always produced at the time energy is needed most. Peak power usage often occurs on summer afternoons and evenings, when solar energy generation is falling. Temperatures can be hottest during these times, and people who work daytime hours get home and begin using electricity to cool their homes, cook, and run appliances.
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Storage helps solar contribute to the electricity supply even when the sun isn’t shining. It can also help smooth out variations in how solar energy flows on the grid. These variations are attributable to changes in the amount of sunlight that shines onto photovoltaic (PV) panels or concentrating solar-thermal power (CSP) systems. Solar energy production can be affected by season, time of day, clouds, dust, haze, or obstructions like shadows, rain, snow, and dirt. Sometimes energy storage is co-located with, or placed next to, a solar energy system, and sometimes the storage system stands alone, but in either configuration, it can help more effectively integrate solar into the energy landscape.
“Storage” refers to technologies that can capture electricity, store it as another form of energy (chemical, thermal, mechanical), and then release it for use when it is needed. Lithium-ion batteries are one such technology. Although using energy storage is never 100% efficient—some energy is always lost in converting energy and retrieving it—storage allows the flexible use of energy at different times from when it was generated. So, storage can increase system efficiency and resilience, and it can improve power quality by matching supply and demand.
Storage facilities differ in both energy capacity, which is the total amount of energy that can be stored (usually in kilowatt-hours or megawatt-hours), and power capacity, which is the amount of energy that can be released at a given time (usually in kilowatts or megawatts). Different energy and power capacities of storage can be used to manage different tasks. Short-term storage that lasts just a few minutes will ensure a solar plant operates smoothly during output fluctuations due to passing clouds, while longer-term storage can help provide supply over days or weeks when solar energy production is low or during a major weather event, for example.
Balancing electricity loads – Without storage, electricity must be generated and consumed at the same time, which may mean that grid operators take some generation offline, or “curtail” it, to avoid over-generation and grid reliability issues. Conversely, there may be other times, after sunset or on cloudy days, when there is little solar production but plenty of demand for power. Enter storage, which can be filled or charged when generation is high and power consumption is low, then dispensed when the load or demand is high. When some of the electricity produced by the sun is put into storage, that electricity can be used whenever grid operators need it, including after the sun has set. In this way, storage acts as an insurance policy for sunshine.
“Firming” solar generation – Short-term storage can ensure that quick changes in generation don’t greatly affect the output of a solar power plant. For example, a small battery can be used to ride through a brief generation disruption from a passing cloud, helping the grid maintain a “firm” electrical supply that is reliable and consistent.
Providing resilience – Solar and storage can provide backup power during an electrical disruption. They can keep critical facilities operating to ensure continuous essential services, like communications. Solar and storage can also be used for microgrids and smaller-scale applications, like mobile or portable power units.
The most common type of energy storage in the power grid is pumped hydropower. But the storage technologies most frequently coupled with solar power plants are electrochemical storage (batteries) with PV plants and thermal storage (fluids) with CSP plants. Other types of storage, such as compressed air storage and flywheels, may have different characteristics, such as very fast discharge or very large capacity, that make them attractive to grid operators. More information on other types of storage is below.
Pumped-storage hydropower is an energy storage technology based on water. Electrical energy is used to pump water uphill into a reservoir when energy demand is low. Later, the water can be allowed to flow back downhill and turn a turbine to generate electricity when demand is high. Pumped hydro is a well-tested and mature storage technology that has been used in the United States since . However, it requires suitable landscapes and reservoirs, which may be natural lakes or man-made by constructing dams, requiring lengthy regulatory permits, long implementation times, and large initial capital. Other than energy arbitrage, pumped hydro’s value of services to integrate variable renewables are not fully realized, which can make the financial payback period long. These are some of the reasons pumped hydro has not been built recently, even though interest is evident from requests to the Federal Energy Regulatory Commission for preliminary permits and licenses.
Many of us are familiar with electrochemical batteries, like those found in laptops and mobile phones. When electricity is fed into a battery, it causes a chemical reaction, and energy is stored. When a battery is discharged, that chemical reaction is reversed, which creates voltage between two electrical contacts, causing current to flow out of the battery. The most common chemistry for battery cells is lithium-ion, but other common options include lead-acid, sodium, and nickel-based batteries.
Thermal energy storage is a family of technologies in which a fluid, such as water or molten salt, or other material is used to store heat. This thermal storage material is then stored in an insulated tank until the energy is needed. The energy may be used directly for heating and cooling, or it can be used to generate electricity. In thermal energy storage systems intended for electricity, the heat is used to boil water. The resulting steam drives a turbine and produces electrical power using the same equipment that is used in conventional electricity generating stations. Thermal energy storage is useful in CSP plants, which focus sunlight onto a receiver to heat a working fluid. Supercritical carbon dioxide is being explored as a working fluid that could take advantage of higher temperatures and reduce the size of generating plants.
A flywheel is a heavy wheel attached to a rotating shaft. Expending energy can make the wheel turn faster. This energy can be extracted by attaching the wheel to an electrical generator, which uses electromagnetism to slow the wheel down and produce electricity. Although flywheels can quickly provide power, they can’t store a lot of energy.
Compressed air storage systems consist of large vessels, like tanks, or natural formations, like caves. A compressor system pumps the vessels full of pressurized air. Then the air can be released and used to drive a turbine that produces electricity. Existing compressed air energy storage systems often use the released air as part of a natural gas power cycle to produce electricity.
Solar power can be used to create new fuels that can be combusted (burned) or consumed to provide energy, effectively storing the solar energy in the chemical bonds. Among the possible fuels researchers are examining are hydrogen, produced by separating it from the oxygen in water, and methane, produced by combining hydrogen and carbon dioxide. Methane is the main component of natural gas, which is commonly used to produce electricity or heat homes.
Energy can also be stored by changing how we use the devices we already have. For example, by heating or cooling a building before an anticipated peak of electrical demand, the building can “store” that thermal energy so it doesn’t need to consume electricity later in the day. The building itself is acting as a thermos by storing cool or warm air. A similar process can be applied to water heaters to spread demand out over the day.
Ultimately, residential and commercial solar customers, and utilities and large-scale solar operators alike, can benefit from solar-plus-storage systems. As research continues and the costs of solar energy and storage come down, solar and storage solutions will become more accessible to all Americans.
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Solar plus storage systems are transforming the clean energy landscape by pairing solar panels with battery energy storage, ensuring a reliable and efficient power supply. A solar plus battery system allows homeowners and businesses to store excess solar energy generated during the day for use at night or during cloudy weather, reducing reliance on the grid and maximizing self-consumption.
Since solar power is an intermittent energy source, integrating solar plus storage technology is crucial for maintaining a steady electricity supply. By offering solar plus storage options, you can expand your business, increase revenue, and provide customers with greater energy independence and resilience.
A solar plus storage system combines solar panels for electricity generation with battery energy storage, allowing excess energy to be stored for later use. This setup ensures greater energy independence and grid resilience.
Without storage, most solar power systems shut down during grid outages. A solar plus battery system enables continued operation, providing backup power and maximizing self-consumption of solar energy.
A solar plus storage system integrates solar panels with battery storage, creating a reliable and efficient energy solution. Here’s how these systems operate:
Solar Energy Generation
Solar energy generation begins with solar panels installed on rooftops or ground mounts. These panels capture sunlight and convert it into direct current (DC) electricity using photovoltaic (PV) cells.
Converting the Solar Energy
Once generated, the DC electricity flows to an inverter, which converts it into alternating current (AC) electricity for use in homes and businesses. Some solar plus battery systems use hybrid inverters that manage both solar generation and battery storage.
Energy Use & Storage
During peak sunlight hours, the converted AC electricity powers appliances, while excess energy is stored in solar batteries. This stored energy can be used at night, on cloudy days, or during power outages.
Energy Management
Many solar plus storage systems feature intelligent energy management. These systems monitor energy production, battery levels, and consumption, optimizing when to store or use energy. Advanced setups can also integrate demand response and load-shifting capabilities.
Grid Independence and Backup
A solar plus storage system can be configured for either grid-connected or off-grid operation. In a grid-tied system, excess solar energy can be sent to the grid, often earning net metering credits. Off-grid systems, or those with backup configurations, ensure critical loads remain powered during grid failures.
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Discharge and Load Management
When solar generation is low, stored battery power supplies the home. Some solar plus storage systems use time-of-use (TOU) optimization, drawing from batteries during peak-rate hours to reduce electricity costs. This enhances savings while improving energy resilience.
When it comes to solar plus storage systems, two of the most common lithium-ion batteries are lithium nickel manganese cobalt oxide (NMC) and lithium iron phosphate (LFP). Both offer advantages depending on the application, but each has distinct characteristics.
Manufacturers like Tesla, LG Chem, SimpliPhi, Blue Planet, Enphase, and Sonnen provide these battery solutions for solar energy systems. Compared to lead-acid batteries, lithium-ion options are preferred in the solar industry due to their longer lifespan, higher efficiency, and lower maintenance requirements.
There are two main types of solar power systems with battery storage, depending on their setup with the utility company.
A solar plus storage system that is grid-tied allows for a flexible energy setup, where the solar panels generate power during the day, and excess energy can either be stored in the battery or sent back to the grid. At night or during cloudy days, homeowners can use the stored energy from the batteries or, if necessary, draw power from the electric grid.
These solar plus storage systems are commonly referred to as hybrid solar systems because they combine the benefits of solar power, battery storage, and grid connection. They are widely used in both residential and commercial settings, providing the advantage of backup power while remaining connected to the grid.
Off-grid solar energy systemsare not connected to the electric grid and are entirely self-sufficient. These systems require significant energy production and storage capabilities to meet all power demands, especially during periods of low sunlight or at night. As such, off-grid systems must be designed with larger solar arrays and high-capacity solar plus storage systems to ensure adequate energy production and storage.
These systems are often deployed in remote areas or rural locations where extending the grid would be cost-prohibitive. In addition to the solar panels and batteries, a backup generator may be used to provide additional power during extended cloudy periods.
Off-grid systems are sized differently than grid-tied systems. They must be robust enough to meet energy needs without any external power source, necessitating a careful balance between energy production and storage.
As solar battery technology advances and prices fall, solar plus storage is increasingly appealing to a broader audience. What might have been unaffordable to many households just 5 or 10 years ago is now feasible. As battery capabilities grow, they are becoming more attractive than a backup generator in many markets. In states without net metering laws, batteries enable homeowners to store energy instead of receiving credits on their electric bills.
Also, some recent high-profile power outages have heightened concerns among home and business owners about the power grid’s reliability. In , widespread power outages in California due to wildfires and extreme weather led to public safety power shutoffs, affecting thousands of homes. Similarly, winter storms in Texas in early caused power disruptions, reminding many of the power crisis that left 4.5 million households without electricity.
With climate-related events on the rise and the ongoing concerns over grid vulnerabilities, many homeowners are increasingly looking to solar plus storage systems for energy security. Understanding your customers’ concerns and needs makes it easier to design and sell a solar plus storage system that will meet their expectations for resilience and self-sufficiency.
Incorporating energy storage into solar power systems offers several benefits to customers, though some advantages may vary depending on local programs, utility offerings, and state incentives.
Solar plus storage systems provide energy security by allowing homes and businesses to remain operational during power outages. When the grid goes down, these systems can rely on stored energy to power critical loads, preventing disruptions and reducing the risk of property damage.
For businesses, solar plus battery systems can minimize downtime and maintain productivity during blackouts. As an installer, it’s important to help customers prioritize critical loads to maximize the value of their solar plus storage systems while adhering to system design limitations.
Many utility companies offer time-of-use rates, meaning customers pay higher rates for electricity during periods of peak demand. By integrating a solar plus battery system, customers can store energy during lower-cost periods and use the stored energy during peak times, reducing their energy costs. This strategy can help lower monthly utility bills and optimize the economic benefits of solar plus storage systems.
In states without net metering programs, like Hawaii, solar system owners cannot receive compensation from the utility for excess energy fed back into the grid. In such areas, solar plus storage systems become even more valuable, as they allow owners to store surplus energy for later use instead of relying on grid credits. This capability ensures that the energy produced by the solar panels can be fully utilized, providing savings and maximizing the efficiency of the system without the need for external compensation.
When installing battery storage systems in California, it’s critical to determine if your potential customer qualifies for this solar plus storage incentive. Meeting the program requirements can significantly boost the chance of making a sale.
The federal solar tax credit, also known as the investment tax credit (ITC), applies to solar systems with batteries. The tax credit is a percentage of the total system cost. Thus, solar systems with batteries can qualify for a larger tax credit because the additional cost of the batteries increases the total system cost. The tax credit is currently in effect at 30% through the end of and then will decrease to 26% for systems installed in .
Some states, especially in the Northeast, have programs that reduce the net cost of installing battery storage systems. In some cases, installers must be approved contractors for their customers to qualify for an incentive.
The Maryland Energy Storage Income Tax Credit enables residential and commercial taxpayers to benefit from installing energy storage capacity with an income tax credit.
The Solar Massachusetts Renewable Target (SMART) Program has an adder for solar systems with battery storage. Eligible residential customers can earn payments of hundreds of dollars a year or thousands of dollars over 10 years. Commercial customers can earn payments for 20 years. The value of the incentive depends on the size of the solar system and the battery’s energy capacity.
The Oregon Solar Plus Storage Rebate Program provides up to $2,500 in rebates for installing a solar battery through the Oregon Department of Energy.
Most solar battery manufacturers offer product warranties. An end-of-warranty capacity rating guarantees that the battery bank will hold a certain percentage of the original capacity for the warranty period. A throughput warranty relates to the total energy the battery is expected to deliver throughout its life and is measured in megawatt-hours (MWh) for residential projects. The throughput warranty is intact until the solar storage system has provided that amount of electricity.
The future of solar plus storage technology is set to transform the clean energy landscape industry. Innovations in battery technology, such as higher energy density and the development of solid-state batteries, will make solar plus storage systems more efficient and compact. These advanced solar batteries promise increased safety and longer lifespans, reducing the risks associated with traditional lithium-ion batteries.
As production scales and technology advances, the costs of solar plus storage systems are expected to decrease, making them more accessible to consumers. Also, integrating these systems with smart grids will enhance energy flexibility, allowing for dynamic management of energy supply and demand. This enables aggregated solar plus storage systems to function as virtual power plants, providing crucial services like frequency regulation and peak shaving to stabilize the grid.
Artificial intelligence will be vital in optimizing energy storage and consumption, predicting energy generation based on weather patterns, and adjusting loads for maximum efficiency. Predictive maintenance powered by AI will also help identify issues early, minimizing downtime and solar maintenance costs.
Sustainability will be a priority for solar plus storage, focusing on eco-friendly battery materials and improved recycling programs that promote a circular economy. Government incentives, such as tax credits and rebates, will further encourage the adoption of solar plus storage solutions. Comprehensive regulatory frameworks will support the safe integration of these systems into existing energy infrastructures.
Lower equipment costs and increased storage capabilities have made solar batteries more appealing than ever before and one of the fastest-growing segments in the solar PV industry. When available, time-of-use pricing from the utility and government incentives boost the returns customers will enjoy. As the solar battery storage market expands, solar installers have an exceptional opportunity to upsell customers by adding storage.
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