Environment & Energy
Related: About this forumIs Germany the Hot Spot for Battery-Backed Solar?
Falling FITs, rising energy prices, and a desire for energy independence could make solar energy storage pay off.
JEFF ST. JOHN: JULY 17, 2013
Storing solar power in batteries is an attractive concept to the homeowner who wants to achieve energy independence from the grid, or the commercial and utility-scale solar array owner that wants to hedge against high electricity prices. But right now, the high cost of batteries and the complications involved in setting them up to power homes and businesses has made the solar battery concept uneconomical in all but the most extreme cases -- or, for the most wealthy of individuals.
But in some markets, factors including falling solar panel prices, increasing grid power prices and policies and incentives that boost solar installations are starting to shift that equation in favor of energy storage for solar. In particular, Germany -- the worlds biggest distributed solar PV market -- may be primed for a wholesale shift to battery-backed solar on a large scale.
Thats the view of German solar analysts, experts and entrepreneurs at last weeks Intersolar conference in San Francisco, which dedicated a morning panel session to the convergence of solar power and energy storage. Despite the very real cost and integration challenges involved, We think battery storage and photovoltaics are a perfect fit, especially if you look at residential and commercial applications, Intersolar CEO Markus Elsaesser said.
In fact, prior to Germanys feed-in tariff regime, almost all solar PV in the country was off-grid, according to Dr. Matthias Vetter of the Fraunhofer Institute. That required pretty much every solar installation to have some storage to provide power when the sun wasnt shining, and those additional costs served as a bottleneck for the sizing and scope of off-grid deployments, he said.
With the emergence of feed-in tariffs in the early part of the previous decade, that situation reversed itself, as Germans were able to sell their solar power back to their utility at guaranteed high prices that exceeded the retail electricity prices they were paying by a significant margin, he said.
But ...
http://www.greentechmedia.com/articles/read/is-germany-the-hot-spot-for-battery-backed-solar?utm_source=Daily&utm_medium=Headline&utm_campaign=GTMDaily
FBaggins
(26,758 posts)Batteries are charged with excess generation - which would otherwise be sold back to the grid at what now are often well above market value prices.
Why pay for the batteries and give up the income from sale of surplus... just to avoid paying for power later when that power isn't priced (to the consumer) to reflect the more expensive power?
Now... in a future world where power prices better reflect cost over the course of the day and incentives are no longer needed? (or for those that are off-grid) Yeah... this makes lots of sense.
kristopher
(29,798 posts)Only it says it a lot better.
FBaggins
(26,758 posts)There's the gap between what the user pays for electricity vs what they would be paid to sell it. They got that.
But there's also the gap between what electricity costs to provide at a given time vs. what consumers actually pay. A smarter grid necessarily involves changes there as well... and boosts the value of personal storage (particularly if the usage of it is also "smart" to offset the most expensive time slots).
Thinkingabout
(30,058 posts)pollution at the current rate wants to continue, even China is beginning to realize where their runaway pollution is putting their country and spilling over into the world. Having lived in the hurricane area for a number of years it would have been nice to have had continuous electrical service after the storms. This is a good thing.
kristopher
(29,798 posts)But most of that initially will be in areas where grid services are spotty of nonexistent. The declining price of solar is only one element, the key is going to be ramped up production of EV batteries and a corresponding drop in their price.
As for Germany, I think the article is hinting at a shift in the role of utilities that many see on the near horizon. There is no question that the increased wind and solar on the grid is bad for the profitability of utilities as they are currently structured. The possibility exists that this damage could be nearly fatal in a far shorter time than we'd intuitively guess.
By fatal, I mean that the current structure of utilities would have to be abandoned and new ones devised and enacted. The form this would take isn't a given and would be a result of competing forces - one of which would be the widescale adoption of battery & grid tied solar systems.
At this point it is speculative, but this is the right time to give these issues real thought and to start planning.
Thinkingabout
(30,058 posts)developing our solar, wind and water resources how far could we have gotten? We have to make a start, the old thinking needs to go, we need modern thinking, thanks for your article.
OKIsItJustMe
(19,938 posts)[font size=4]History[/font]
[font size=3]
Established in 1974, NREL began operating in 1977 as the Solar Energy Research Institute. Under the Jimmy Carter administration, it was the recipient of a large budget and its activities went beyond research and development in solar energy as it tried to popularize knowledge about already existing technologies, like passive solar, amongst the population. During the Ronald Reagan administration, the institute's budget was cut by some 90%; many employees 'reduced in force' and the laboratory's activities were reduced to R&D. [/font][/font]
Thinkingabout
(30,058 posts)OKIsItJustMe
(19,938 posts)
by the time of the (2nd) Iraq war, it really was too late.
We needed to have done more R&D back in the 80s.
http://www.presidency.ucsb.edu/ws/?pid=44096
[font size=4]Message to the Congress Transmitting the National Energy Policy Plan[/font]
July 17, 1981
[font size=3]To the Congress of the United States:
The National Energy Policy Plan that I am sending you, as required by Section 801 of the Department of Energy Organization Act (Public Law 95-91), represents a break from the format and philosophy of the two National Energy Plans that preceded it.
Our national energy plan should not be a rigid set of production and conservation goals dictated by Government. Our primary objective is simply for our citizens to have enough energy, and it is up to them to decide how much energy that is, and in what form and manner it will reach them. When the free market is permitted to work the way it should, millions of individual choices and judgments will produce the proper balance of supply and demand our economy needs.
This Administration's actions to end oil price controls and to dismantle the cumbersome regulatory apparatus associated with those controls demonstrate the intent stated in my February 18 economic message to minimize Federal intervention in the marketplace. Reforms in leasing policies and the removal of unnecessary environmental restrictions upon the production, delivery, and use of energy are part of this same effort to reduce bureaucratic burdens on all Americans.
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Yo_Mama
(8,303 posts)so I assume that such installations will sharply increase. It's not cost-effective, but I think the rational is that it didn't depend on all the other backed-up stuff, like grid enhancements.
It's really a closet subsidy to German industry, because the 30% subsidy only applies to systems developed in Germany:
http://www.pv-magazine.com/news/details/beitrag/germany--pv-storage-subsidies-expected-in-may_100010135/#axzz2ZX0DqwUt