June 29, 2015
What’s the true, overall value of combined “behind the meter” energy storage plus solar PV deployment to U.S. power utilities and their customers? That’s the big question facing stakeholders in Hawaii and other U.S. states with a need to integrate fast-growing amounts of solar and renewable energy on to power grids.
A new valuation methodology set out in a report commissioned by the Interstate Renewable Energy Council (IREC) and carried out by Clean Power Research offers utilities, grid operators and regulators the means to find out. With Hawaii’s electricity market providing the basis, the IREC-CPR report, “Valuation of Solar + Storage in Hawaii: A Methodology,” fills a gap in the analytic toolkit utilities have at their disposal, IREC and CPR explained in interviews.
A rough analysis using the valuation methodology indicates the incremental value of adding battery storage capacity to solar PV installations in Hawaii comes in at 10 cents per kWh. Those net capacity added benefits accrue to the utility and rate payers. Costs of 7 cents per kWh, which include the costs of solar and storage losses, are paid for by utility customers who deploy these hybrid systems, CPR’s Ben Norris explained.
While these figures are specific to Hawaii, IREC-CPR’s valuation model can be used to determine the value of solar-plus-storage installations in any state or region, he added.