Behind-the-Meter Energy Storage Implementation

Abstract

With the growth of alternative forms of energy, and depletion of fossil fuels, energy storage will play an important part in the energy grid of the future. Mechanical forms of energy, although cheap, require specific geological features, and so increasingly electrochemical forms of energy, or batteries, are relied on. The implementation of these batteries relies on certain technological, economical, and regulatory factors. Although costs are lowering, they are still too high to have wide adoption levels at the current price level. There are opportunities to implement battery storage widely at the home level, but there is a lot of restructuring and regulations needed to jump start this process, as the traditional electrical utilities were not set up with the intention of isolated grids. Like both the solar and wind industries, market transformation will be needed to increase adoption.

Appendix: Results

1.1 Daily Profile Summaries

Demand: August day	W/o battery	W/battery	Difference
Number of kWh purchased at peak	−0.25	0.00	0.25
Number of kWh purchased at nonpeak	−11.61	0.00	11.61
Number of kWh sold	16.02	2.86	−13.16
Revenue at peak	−0.08	0.00	0.08
Revenue at nonpeak	−2.66	0.00	2.66
Revenue from energy sold	1.55	0.28	−1.28
Energy revenue	−1.18	0.28	1.46

Demand: May day	W/o battery	W/battery	Difference
Number of kWh purchased at nonpeak	0.00	0.00	0.00
Number of kWh purchased at peak	−12.33	0.00	12.33
Number of kWh sold	14.21	0.52	−13.69
Revenue at peak	0.00	0.00	0.00
Revenue at nonpeak	−2.82	0.00	2.82
Revenue from energy sold	1.38	0.05	−1.33
Energy revenue	−1.45	0.05	1.50

1.2 Economic Analysis Base Case

Electricity rates
Peak rate	0.305
Non peak rate	0.229
Sellback rate	0.097
Revenue
Average difference revenue consumed per day	$2.78
Average difference revenue produced per day	($1.30)
Number of days battery is charged	365
Rate of increase of electricity tariff	3.4%
Battery price
Price of battery	$8200.00
Tax credit	30%
Price after federal credit	$5740.00

Year	Difference in revenue between system with and without battery—Consumed	Difference in revenue between system with and without battery—Produced	Total revenue
0			($5740)
1	$1014.65	($475.32)	$539.33
2	$1049.15	($484.66)	$564.49
3	$1084.82	($484.66)	$600.16
4	$1121.70	($484.66)	$637.04
5	$1159.84	($484.66)	$675.18
6	$1199.28	($484.66)	$714.62
7	$1240.05	($484.66)	$755.39
8	$1282.21	($484.66)	$797.55
9	$1325.81	($484.66)	$841.15
10	$1370.89	($484.66)	$886.23
Internal rate of return			3%
Payback period			9 years

1.3 Economic Analysis: 300 Days of Sun

Electricity rates
Peak rate	0.305
Nonpeak rate	0.229
Sellback rate	0.097
Revenue
Average difference revenue consumed per day	$2.78
Average difference revenue produced per day	($1.30)
Number of days battery is charged	300
Rate of increase of electricity tariff	3.4%
Battery price
Price of battery	$8200.00
Tax credit	30%
Price after federal credit	$5740.00

Year	Difference in revenue between system with and without battery—Consumed	Difference in revenue between system with and without battery—Produced	Total revenue
0			($5740)
1	$833.96	($390.68)	$443.28
2	$862.31	($398.35)	$463.96
3	$891.63	($398.35)	$493.28
4	$921.95	($398.35)	$523.60
5	$953.29	($398.35)	$554.94
6	$985.71	($398.35)	$587.36
7	$1019.22	($398.35)	$620.87
8	$1053.87	($398.35)	$655.52
9	$1089.71	($398.35)	$691.36
10	$1126.76	($398.35)	$728.41
Internal rate of return			0%
Payback period			10 years

1.4 Economic Analysis SGIP Program

Electricity rates
Peak rate	0.305
Nonpeak rate	0.229
Sellback rate	0.097
Revenue
Average difference revenue consumed per day	$2.78
Average difference revenue produced per day	($1.30)
Number of days battery is charged	365
Rate of increase of electricity tariff	3.4%
Battery price
Price of battery	$8200.00
Tax credit	$400/kWh + 30%
Price after federal credit	$1820.00

Year	Difference in revenue between system with and without battery—Consumed	Difference in revenue between system with and without battery—Produced	Total revenue
0			($1820)
1	$1014.65	($475.32)	$539.33
2	$1049.15	($484.66)	$564.49
3	$1084.82	($484.66)	$600.16
4	$1121.70	($484.66)	$637.04
5	$1159.84	($484.66)	$675.18
6	$1199.28	($484.66)	$714.62
7	$1240.05	($484.66)	$755.39
8	$1282.21	($484.66)	$797.55
9	$1325.81	($484.66)	$841.15
10	$1370.89	($484.66)	$886.23
Internal rate of return			32%
Payback period			4 years