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INTRODUCTION TO ENERGY STORAGE
What Is Energy Storage?
Traditionally, the electric grid operated on a principle where electricity had to be generated and used in real-time. For instance, the moment you switch on a hairdryer, a power plant somewhere ramps up its output slightly to maintain grid balance. With the advent of energy storage systems, we now have the capability to store electricity and release it at optimal times. Presently, Lithium-ion batteries, similar to those in smartphones and electric vehicles, are the leading technology for energy storage. These batteries, whether used at commercial, industrial, or utility scales, can be charged with grid electricity, hold that energy, and then release it either to meet demand when it peaks or during periods of high energy costs. This technology is increasingly used alongside Soligent solar photovoltaic (PV) systems, enhancing solar energy's contribution to the grid by storing excess solar power during sunny periods for use when it's cloudy or nighttime, thus unlocking the full potential of solar energy.
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The realm of energy storage encompasses four fundamental categories:
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Electrochemical System: This includes technologies like lithium-ion batteries and flow batteries, which store energy in chemical form for later electrical use.
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Thermal System: These involve capturing and storing heat in materials such as rocks, allowing for the retention and later use of thermal energy.
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Mechanical System: Examples include pumped hydro storage, compressed air energy storage, and gravity-based systems, which store energy through physical means.
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Chemical Systems: This category covers capacitors and hydrogen storage, where energy is stored and released through chemical reactions.
What Is Battery Storage?
Battery Energy Storage Systems (BESS), integrated with grid electricity, predominantly use Lithium-ion technology for their efficient charge retention, affordability, and minimal space requirements. These systems don't create energy but instead store it, making strategic timing for charging and discharging essential. Through net metering, energy stored during low-demand, low-cost times can be discharged back to the grid during high-demand, high-cost periods, often resulting in reduced energy bills and potential earnings for excess energy supplied. This method is particularly appealing for businesses and utilities aiming to cut energy costs and reduce their carbon footprint, as it leverages the grid not just for energy storage but also as a dynamic platform for energy exchange, enhancing sustainability and economic efficiency.
Battery storage systems come with a few key features:
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Discharge Capacity: This is the highest amount of power the system can provide at once, measured in kilowatts (kW).
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Storage Capacity: Think of this as the size of the battery's "tank," indicating how much energy it can hold, measured in kilowatt-hours (kWh).
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Duration: This shows how long the system can run at its maximum power if it starts fully charged, calculated by dividing the storage capacity by the discharge capacity, and is usually measured in hours.
Most battery storage systems available on the market today can run for about two to four hours, making them perfect for short-term needs like supporting the grid during high demand times or offering auxiliary services. However, as we move towards a grid that relies more on clean energy sources like solar and wind, the need for batteries that can last longer is increasing to ensure a smooth and continuous power supply.
What Is Net Metering?
Net metering is a savvy billing approach that turns the electric grid into a virtual "bank" for the surplus energy your solar panels generate. With net metering, any electricity your panels produce but you don't immediately use gets added to your account as credits. Then, on days when the sun's playing hide-and-seek and your panels can't keep up, you can draw from this energy "savings account" to power your home, using up those banked credits. Essentially, you're only charged for the difference between the energy you use from the grid and the energy your panels contribute back, known as your "net" energy consumption. This system, often referred to as net energy metering (NEM), is a cornerstone policy in the solar industry, designed to maximize the benefits of solar energy for homeowners.
How Does Net Metering Work?
Imagine you've got a shiny new solar panel system on your roof, and you're part of a net metering program. This means when your solar panels are soaking up more sunshine than you need, turning it into extra electricity, that surplus power gets sent back to the grid, essentially turning your electric meter backwards. On the flip side, during times when you need more power than your panels can provide, like at night or on cloudy days, you draw electricity from the grid, which turns your meter forwards. At the end of the billing period, be it monthly or yearly, your bill reflects the "net" difference between the energy you contributed to the grid and what you took from it—thus the term "net metering."
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With a solar system that's tailored to your home's energy needs, it's possible to generate just the right amount of electricity over the course of a year to match your consumption. However, the power your panels produce will fluctuate with the seasons—plenty during the sunny summer and less during the shorter, cloudier winter days. Net metering comes into play here by banking the excess electricity you generate during those peak sunny times, allowing you to use it later when production dips, ensuring your energy needs are met year-round.
The Purpose Behind Net Metering
Net metering policies serve a dual purpose: they aim to boost the uptake of renewable energy across the nation and provide advantages to utilities and the electricity grid by welcoming a steady stream of cost-effective solar energy. This solar influx is particularly beneficial as it can offset the expenses utilities face when buying electricity from other sources. This is especially true during the summer, when electricity demands and prices peak alongside the sunny, hot weather, making solar energy a valuable asset for reducing overall electricity costs.
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As for how electricity bills operate under net metering, homeowners with solar panels can significantly reduce their monthly charges. When their solar system produces more electricity than they use, the surplus is sent back to the grid, earning them credits. Then, during times when their usage exceeds production, they can draw on these credits instead of purchasing additional power at market rates. Essentially, net metering allows solar panel owners to only pay for their "net" energy use—the difference between what they consume from the grid and what they supply to it.
Understanding Your Electricity Bill Under Net Metering
Typically, homes with solar panels generate more electricity than they need during the sunny summer months and draw more from the grid during the darker winter months. This seasonal fluctuation is well understood by utilities, so rather than paying you directly for surplus power in summer, they credit your account. This way, you accumulate credits when your production is high, which you can then use during the night or the colder months when your system produces less. Ideally, your solar setup is designed to balance your annual electricity consumption, allowing for periods of both surplus and deficit production.
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If your solar system produces more electricity than you consume in a month, you earn credits for the net excess kilowatt-hours contributed to the grid. Conversely, if you use more electricity than your panels produce, you will need to purchase the shortfall from your utility provider. Essentially, you pay only for the net electricity used over the billing period, after offsetting any contributions made by your solar panels.
Maximize Your Savings with Solar Energy through Net Metering
Net metering stands out as the premier policy for solar energy because it effectively "banks" each unit of electricity your solar panels generate, allowing you to use it later via the grid. This system can lead to substantial savings, potentially amounting to tens of thousands of dollars throughout the lifespan of your solar panel system by reducing your reliance on grid-supplied electricity.
Though net metering isn't the sole method utilities use to reward homeowners for adopting solar, it remains the most widespread and impactful policy currently available. To discover whether net metering or another solar incentive program is available in your area, exploring resources like the Database of State Incentives for Renewables and Efficiency (DSIRE®) is invaluable for staying informed on various solar incentives and rebates.