Private vs. public value of U.S. residential battery storage operated for solar self-consumption.

ABSTRACT: Compensation structures for residential solar are evolving toward a model that incentivizes using battery storage to maximize solar self-consumption. Using metered data from 1,800 residential customers across six U.S. utilities, we show that batteries operated solely in this manner provide customer bill savings up to $20-30 per kWh of storage capacity annually, but virtually no grid value. Relative to market-based dispatch, this value gap remains across customers and will become more severe over time, insofar as increased renewable energy penetration leads to more volatile wholesale prices. This inefficiency primarily stems from residential batteries largely sitting idle on peak days. We show that incentivizing storage customers to respond to market prices, particularly on peak days, would

SUBMITTER: Forrester S 

PROVIDER: S-EPMC9287603 | biostudies-literature | 2022 Aug

REPOSITORIES: biostudies-literature