The Growing Popularity of Home Energy Storage

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‍Introduction

In recent years with the growing popularity of electric cars and the increase in electricity costs (especially in Southern California) etc., Home energy storage installations are on an upwards trend. Within the last decade the cost of lithium-ion battery production has greatly decreased.   Around 2010 this technology was widely being used to power phones, computers and other personal electronics. Today we are seeing a rapidly increasing use of lithium-ion battery technology used to power our homes. Up to this point our society has been primarily dependent on coal and natural gas to provide power for the hours of the day that solar and wind energy cannot. This is where battery backup power comes in by providing power when other renewable sources are incapable of producing. 

Driving forces

Given the times today where the global climate crisis is continuing to be a topic that takes precedence home energy storage is perhaps another solution to developing a nearly carbon free environment. This technology has the ability to bridge the gap that other renewable energy sources like wind and solar cannot by storing power and dispersing during the hours where generating power is no longer an option.  This power is considered an uninterrupted power source or UPS. Furthermore, batteries present the greatest positives during times when grids are down. Rather than experiencing times of power outages homeowners and even complete municipalities can run off battery backup until power is restored. For homeowners combining solar and battery backup allows them the freedom to keep major appliances and lights on while neighbors without batteries will still be in the dark. This technology and situation apply to both homeowners and utility scale alike. 

Electricity costs

With rising energy costs especially in areas like Southern California and upstate New York people are looking for options to save. Home energy storage are a great solution to cutting down energy costs when combined with solar (photovoltaic) systems. Solar systems can generate power and charge in home batteries by day and by night homeowners can rely on the batteries to provide clean power for times that call for it.  

For the last several years public utilities have taken certain measures to ensure that profits continue to increase despite an increase in installed solar systems throughout their grids.  New rate schedules like time-of-use (TOU) rates are increasing bills for even customers that have installed solar systems furthermore eroding the value of solar.  TOU rates are rates that vary depending on the time of day. Batteries are perhaps the missing link in providing a clear solution. While The greatest rate increase (peak hours) exists in the late afternoon and evening hours. This is when solar systems are producing little to no power and when homeowners are consuming the most power. Batteries can eliminate these excessive rates by allowing the homeowner to essentially go off grid and rely solely on battery power.  The theory is to charge the battery when rates are low and discharge when rates are high. 

Electric Cars

Over the last several years several manufactures have developed and manufactured new autos relying on battery technology along. While currently less than 3% of U.S. consumers own an EV vehicle, this number is expected to grow at a staggering rate within the next decade. With this shift of automobiles relying on battery powered vs. gasoline there comes a new demand for electricity and how that will be supplied. Ultimately utility cost will increase for home charging. Therefore, having batteries in home will help to greatly reduce utility costs based on the solutions mentioned in the previous paragraph. 

Battery cost

Battery storage up to this point has seemed something like a novelty more than a necessity but things have been changing. Not only are batteries making sense because they can provide continuous power and cut down on rate charges, but the prices have drastically reduced over the last five years. Economists evaluate the decrease in price by using an evaluation method known as levelized cost of energy or (LCOE). This is an evaluation of the tech and the energy it provides throughout its lifespan.  Over the last few years our economy has seen this LCOE fall nearly 40% due to the increase in new competitors and public demand. 

Conclusion

It doesn’t take long to realize that batteries will most likely be something of the norm but also that they provide significant benefits to powering our future. If you feel batteries could be a possibility for your business or home or would just like more info, please contact us.