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I think it will be a mix of both. Local storage at home is great for some grid independance during blackouts and usually you save some money when you have you own solar roof.

But local storage usually will be more expensive per storage capacity vs. larger storage facilities. This means, a large amount of storage will be there, because it is cheaper. Also the power company can control it better than home systems.

And of course there the electric cars which could partially contribute to the grid storage.



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I think home storage probably makes no sense as long as the grid works well. No matter how cheap storage gets, it'll always be cheaper to send power to something that needs it right away, if there is such a something. The grid needs dispatchable power or storage for times when there isn't such a something, but less than if every user was their own little island. Combine that with economies of scale and the grid should be able to do storage much more cheaply.

Home solar probably makes sense (or will soon) because economies of scale don't affect it as much and a lot of the power being produced can be consumed right there.

The one wrinkle being the assumption that "the grid works well." It doesn't always. If the grid is saddled with a bad price structure or poor reliability then the equation changes considerably. I suspect that a solar+batteries combo will be really popular in certain third-world countries where grid power sucks.


I suspect that one reason for a domestic storage system would be having solar in one of the states where the power companies have imposed punitively high charges for tying to the grid.

Yes, storage matters quite a lot because electric grids burn out if supply doesn't equal demand constantly. You need the storage not only for overnight, you need it to store energy when wind and solar are overproducing relative to current demand and you need it to supply that stored energy when wind and solar are underproducing if you expect the grid to get rid of demand resources like coal and especially natural gas.

another unmentioned cost of especially wind, but also to some extent solar is the huge transmission upgrade needed to support wind. It is a huge cost and it is never accounted for in the numbers when people are pushing for wind and solar (because it usually ruins the claim that wind and solar are cheaper over their lifecycle vs natural gas). They are also costs the consumer largely gets stuffed with via billing items outside of energy cost so it's kind of insidiously hidden from the consumer.


That's why I think we'll see a lot of small-scale distributed storage, rather than giant industrial storage plants that match our current concept of the power grid. If you're running, say, a big box store, buying your own local storage for the store can make economic sense if it can pay for itself by buying dynamically priced energy. And then it doesn't need to be huge, because it's not trying to power a city, it's just trying to power your warehouse/store. A block of batteries, or a thermal system, or a water tower starts looking pretty attractive financially.

We'll need a lot of storage to make local solar as reliable as the grid. We may be headed for an uncanny valley, as solar makes the grid less profitable, yet still necessary.

The utility companies should probably be investing in EV charging (like the ability to buy electricity from a shared charger, and bill it directly to your home account instead of appearing on the charger operator's meter), in order to maintain/increase demand for their product as solar takes it away.


Even if in theory local storage us cheaper, most people won't want to invest in replacing their system every 10 years when it wears out.

I think we will see mostly utility scale storage. Most people will have an electric car that they can plug into, but that will only be done to keep the fridge cold when the utility goes out.


And considering this, a big question is will the market move away from centralized power systems. Will it be more viable to have a local/household level power generation and storage or will scale continue to give cost savings. This will likely have the biggest effect on storage/generation methods used. Possibly hybrid with distributed for suburb/rural and consolidated for urban/commercial? Or locally generated with grid peak power? Interesting times.

As an example: My father (living in Germany) installed a 10 kWp photovoltaic system in spring last year along with a 10 kWh battery. In the summer months he was almost self-sufficient with that, as he could use his own solar power at night or on rainy days. The forecast for the whole year is ca. 65% self-sufficiency.

So local storage reduces the amount of both the power taken from and provided to the grid and therefore is beneficial for grid stability.

The problems start, when the storage is not local anymore, that is when the power surplus is not at the same location as the storage itself. A few examples: When the sun is shining your electric car is probably at the parking lot of your workplace and you can't store the output of your PV system. Or when it's a rainy day, you and also all other households in a wide area around you, wont' produce much power. Then the power has to come from somewhere else, e.g. a sunnier place, offshore wind or gas power plants.

So to use all the distributed storage effectively, you have to route the power around a lot, which probably makes changes in the power grid inevitable. How much one has to invest in the grid and how that relates to the overall power price is probably a very complex topic depending on a lot of variables including geography, power mix and cost of storage.


A lot of the charging will happen at homes at night, so until energy storage doesn’t add 200% to the cost to take a solar install to solar + storage, the utilities are still going to be the power providers.

There are also going to be (hopefully) some low cost utility scale storage options that, along with the 50% cost advantage of utility solar over rooftop, could be combined with the existing distribution infrastructure to provide low-cost and low-carbon energy for transportation.


I wonder if we'll end up with individual home storage, eg Tesla Powerwall or similar. Then you fill it up when there's grid, you use it when there isn't, and you just have to manage the charge level.

I think home storage probably makes no sense as long as the grid works well. No matter how cheap storage gets, it'll always be cheaper to send power to something that needs it right away, if there is such a something

You're also perhaps assuming that this infrastructure exists. Right now, most US home connections to the power grid can't transmit power outside of their own subdivision. You did say if "the grid works well." You could say that includes, "works at all between you and relevant points."


I don’t think any meaningful storage makes sense for a home, but for a grid-attached solar plant. The surface area is large but I think the cap ex (and naturally the op ex) are naturally much lower.

Even if the solar plant doesn’t generate enough in the middle of summer when demand is high, its grid connection means the batteries could be charging from surplus wind at night.

Not that this addresses my time-volume issue, just saying it’s not worth considering from the single home perspective except in unusual cases.


I only see this route going if the power companies themselves are responsible enough to make the transition to renewable energy (I'm not sure they are, at least in any relatively quick timeframe). So if the case comes that fossil fuels become more and more expensive, then and only then will they really make an effort to transition to mostly renewable energy. And it'll happen at a slow and crippling pace for all us tree-huggers out there.

So storage still makes a lot of sense, because if I want to do anything about renewable energy, I unfortunately have to do it myself. Putting some sort of solar system on my house will cost ME money; either outright, leased, or through a home-improvement loan plan. Which is sad, but it is what it is (and kudos to what the government HAS done to bring down these costs). Since it's all on me to reduce my carbon footprint, that energy produced must be stored, and these home battery systems (Tesla or not, there's about 2 other choices though, it seems in my research with companies locally) are not all that expensive considering the cost and installation of a solar array, especially Tesla's pricier solar roof option. And that's giving you complete independence from the electric company.

I talked to a rep about a solar solution and he understood my concern for wanting to go "net zero" since it feels like locally, the power company is devaluing what you put back into the sub-system more and more. He explained that more and more people exploring their alternative energy solutions are interested in these battery/storage systems for the exact same reasons. With a minimum investment of about 30k or 40k for a whole-home solution, a lot of people don't trust that their power fed back into the grid won't be devalued over time (at least a rate higher than the natural decay of battery technology).


The question isn't whether you'll need storage at all. It's whether it's cheaper to build enough storage for windless nights, or baseload nuclear and enough storage for remaining demand discrepancies.

I think the latter is more feasible without too much wind, since solar predictably goes to zero when demand is lowest. I don't think it's at all clear that a grid with high amounts of wind instead of nuclear would be cheaper.


At some point someone has to consider storage (or alternative provisioning, or dispatchable load) for solar-backed grid. Even if it's not the homeowner with panels on their own roof.

As I mentioned elsewhere, electric cars turn into pretty good storage systems, too.

And with a smart distributed grid, it's not just storage that makes sense locally - it's generation. Put a solar roof on the big box store, attach a storage system, and have a mostly self-sufficient system. And if it's generating surplus, sell it! Buy only when it's needed.

Meanwhile, poor developing nations or rural areas that don't have the capital or the chops to build giant nuclear plants can easily invest in very small scale projects. Go to some remote village, put up a wind turbine and a compressed air tank you can just bring in on a truck. Now that village has power! It may not be as financially efficient long-term, but by increasing the potential productivity of remote areas, it can pay for itself easily at the local level.

It's an exciting thing to see.


The way I see it, we haven't worked had on energy storage capabilities. We optimized for cellphones and Laptops, and these cover most of your day or more now. For homes, the market is still no that big, because batteries are expensive and electricity is widely available.

As we move to solar, electricity will become very cheap in the day and very expensive at night. This will create the required capital to create storage solutions in houses and factories. Also you don't need a portable battery when installing it at home, so I think the cost could be reasonable.


Individual solar storage seems like a neat idea, but limited to single-family houses. Major piece of feedback SolarCity received after the first wave of Tesla Powerwall installations was how customers hated giving up space in their garage http://www.greentechmedia.com/articles/read/Lesson-Learned-F...

So with SolarCity at least, the focus seems to be on community storage, where the grid of replaceable batteries is shared by neighbors on the same cul-de-sac/block/street/community/town. Long-term this is also insurance against net metering going away (which utilities will probably lobby through successfully at some point). Via community storage neighbors can start selling to neighbors.

However, someone still needs to maintain the neighborhood storage system, manage billing for produced/consumed kWh, run the actual wires to/fro storage, at which point we've re-invented the utility company, just at much smaller scale.


Sufficient storage to handle local load + variation should be pretty well predictable in the future. The interesting difference to me is, since storage will probably cost substantially more than generation, what the ratio will mean for cost of energy in various locations. I have no doubt that at some point, the solar generation + storage formula will be broadly cheaper than fossil fuel.
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