It is an exciting time for the power sector. The sector is witnessing the advent of several emerging and disruptive technologies that are transforming it for the better. The latest disruptive technology to take the power sector by storm is battery storage.
Fall in Storage Prices
Low-cost battery storage has become a reality in the modern times. This has happened primarily due to the growing demand for electric vehicles and consumer markets. Players in Europe, Asia, and the United States are scaling the manufacturing of lithium-ion batteries so that they can serve their target markets better. Today, the price of battery storage is under $230 per kilowatt-hour, which is a substantial reduction considering that the price was $1,000 just a few years ago.
With the reduction in battery storage in Santa Rosa and other areas, energy markets are making a shift from niche usage to broader uses, like integrating renewable, providing quality services, and replacing conventional power generators to ensure more reliability.
Battery Storage a Boon for Solar Energy Producers
In the US, many households now have solar panels that allow them to generate their own energy and meet their needs. However, the surplus is often exported to the main grid. Thanks to battery storage, they no longer have to worry about surplus electricity production. They can store any surplus and utilize it on demand. Hence, the demand for battery storage is increasing among customers, and research shows that this market will continue growing, especially in high-cost markets. The demand for battery storage will increase in the coming years in areas with frequent public safety power shutoffs from PG&E. A public safety power shutoff (PSPS) can last for days. Having battery storage would mean you’d never have to go without power during a PSPS.
Battery Storage is Transforming the Utility Industry
It is possible to install battery storage at the grid as well as at the customer’s business or home. The cost of deploying this technology is dependent on the type of customer, regulations, type of application, needs of the grid, and the customer’s load. Nonetheless, it is poised to revolutionize the utility industry.
Battery storage is quite flexible, and can create value streams that will grow by leaps and bounds, and benefit the industry when properly deployed and scaled. While research shows that battery storage will be a challenge for utilities positioned behind the meter, it will offer an advantageous opportunity to utilities that are in front of the meter.
Already the utility industry is up against cheap solar energy, and this industry will face further disruption with cheap storage options. When electricity generated can be easily stored, it will have an impact on utility rates wherever these battery storage options are used. If you have more questions about renewable energy systems and battery storage solutions for your home or business, you can consider calling the experts at Summit Technology Group at 707-542-4773, or book a consultation with us.