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 enhance both private and public value. Unconstrained grid discharging increases exports to distribution networks, but 50-70% of the potential market value could be achieved without materially degrading solar self-consumption levels or increasing local grid stress.

Meeting national and state decarbonization goals requires a transition to clean energy technologies. Energy efficiency, demand flexibility, renewable energy and storage can reduce consumers’ electricity bills, lower total electricity system costs, and provide health and resilience benefits. Berkeley Lab developed a series of briefs that explore these consumer benefits of a clean energy transition. Clean energy resources that are located behind the meter have the potential to benefit the hosting customers by providing affordability, environmental, and reliability and resilience value. Solar plus storage systems (PVESS) are clean energy resources that can supply backup power without requiring fuel resupply or increasing local emissions. This report examines the regional value of PVESS for resilience by calculating a benefit-cost ratio (BCR) that considers the annual resiliency benefits of PVESS and the annualized cost of the investment. In addition, we estimate the expected technical mitigation potential of PVESS systems at the county-level to these expected events, and characterize the customer interruption costs by determining the value of lost load at the state level.

Building energy technologies and distributed generation, including energy efficiency (EE), distributed solar PV (DPV), and building electrification, are critical to meeting decarbonization goals. Rate design may play an important role in determining the customer economics of adopting these technologies, but it is unclear whether – and to what extent – current rate design trends support or impede progress toward these goals. In this study, we answer these questions by quantifying the range of residential customer bill impacts of EE, DPV, and building electrification investments under current and emerging time-based retail electricity rate designs (i.e., time-of-use, event-based pricing, coincident demand charges, and real time pricing). We also compare these customer bill savings to power system and societal benefits and assess how well the investments are compensated relative to the societal value they provide.

This report provides foundational data on programs and rates that promote demand flexibility in residential and commercial buildings in the United States. Leveraging a dataset of 148 programs and 94 rates collected through a review of utility websites, published electricity tariffs, and a database of demand-side programs, we describe the structure of demand flexibility events and the types and levels of incentives offered. For the two most common program types in our dataset—Wi-Fi thermostat and battery storage programs—we provide additional details on program designs. We also report data on program outcomes, including enrollment and participation, energy and demand savings, and costs. Furthermore, we describe the structure of dynamic rate events, report prices for critical peak pricing and variable peak pricing rates, and describe features of technology rates.

This technical brief estimates the expected performance of a solar photovoltaic and energy storage system (PVESS) for providing backup power during short-duration power interruption events, accounting for the unpredictable nature of those events. The analysis relies on the Power Reliability Event Simulation TOol (PRESTO), a publicly available model developed by Berkeley Lab to simulate the occurrence of short-duration power interruption events at the county-level. A separate storage dispatch model is then used to simulate PVESS operation and backup performance for each of the large number of interruption events produced by PRESTO. In performing this simulation, the analysis accounts for how the customer operates its battery on a day-to-day basis—in this case, we assume the battery is cycled each day in response to time-of-use rates—and how that, in turn, impacts the battery’s state of charge at the beginning of each interruption event. The analysis presented here is intended to demonstrate an application of the PRESTO model as well as to illustrate some of the key determinants of PVESS backup power performance during short-duration power interruption events. The analysis focuses initially on a typical single-family home in Maricopa County, Arizona, and includes a limited set of scenarios related to system sizing, backup power configuration, and whether the customer charges its battery storage system from the grid during normal operating conditions. The analysis also presents comparative results for two other counties, in Massachusetts (Middlesex) and California (Los Angeles), illustrating how regional differences in climate, interruption patterns, and retail rate structures can affect PVESS performance as a backup power source. In the conclusions, we highlight a number of other important considerations for evaluating PVESS backup power capabilities.

The study analyzes the evolving role of solar+storage for home backup power during long-duration power interruptions. In particular, it evaluates how required storage sizing is impacted as homes become more efficient, flexible, and electrified. The study relies on NREL’s ResStock building modeling platform to create statistically representative distributions of the existing building stock in ten locations across the United States. It then shows how the amount battery storage required for backup power rises or falls as a series of building envelope efficiency, load flexibility, and electrification measures are applied across the building stock in each region. The study also includes sensitivities to show how backup power requirements are impacted by the timing and duration of power interruptions, and explores variation in backup power requirements across the building stock within each study location. The results demonstrate the value of pairing solar+storage with efficiency upgrades, smart home controls, and (in mild winter climates) efficient heat pump retrofits. That value comes in the form of reducing the amount of storage required and/or extending the range of interruption conditions over which a given system can provide backup power (i.e., more extreme weather and/or longer interruptions). Heat pumps in cold-weather climates can pose a challenge for solar+storage backup power, given the amount of storage required, though are a vast improvement over electric-resistance heating. Retaining existing fossil-based heating systems for occasional use during power interruptions, as either the primary or supplementary source of heat, can mitigate this challenge. Other forms of building electrification (e.g., cooking and water heating) generally have marginal impacts on backup battery sizing, given their relatively small energy demand.

The study estimates the performance of behind-the-meter solar PV-plus-energy-storage-systems (PVESS) in providing critical-load or whole-building backup across a wide range of geographies, building types, and power interruption conditions. The study also considers a set of 10 historical long-duration power outage events and evaluates how PVESS could have performed in providing backup power during those specific events. The analysis is the first in what will be a series of studies by Berkeley Lab, in collaboration with the National Renewable Energy Laboratory, on the use of PVESS for backup power. This initial study, which relies on simulated end-use level building loads, solar generation, and storage dispatch, is intended to provide a baseline set of performance estimates and to illustrate key performance drivers.

This technical brief compares utility assumptions and methodologies for incorporating utility-scale and distributed energy storage in integrated resource plans (IRPs) filed by three utilities serving Indiana and five utilities serving other states. The brief also identifies opportunities to improve storage modeling. Berkeley Lab conducted the research for Indiana Utility Regulatory Commission Staff under the Economic Valuation of Energy Resources project funded by the U.S. Department of Energy.

Customer concerns over electric system resilience could drive early adoption of behind-the-meter solar-plus-storage (BTM PVESS), especially as wildfire, hurricane, and other climate-driven risks to electric grids become more pronounced. However, the resilience benefits of BTM PVESS are poorly understood, especially for residential customers, owing to lack of data and methodological challenges, making it difficult to forecast adoption trends. In this paper, we develop a methodology to model the performance of BTM PVESS in providing backup power across a wide range of customer types, geography / climate conditions, and long duration power interruption scenarios, considering both whole-building backup and backup of specific critical loads. We combine novel, disaggregated end-use load profiles across the continental United States with temporally and geospatially aligned solar generation estimates. We then implement a PVESS dispatch algorithm to calculate the amount of load served during interruptions. We find that PVESS with 10 kWh of storage can meet a limited set of critical loads in most United States counties during any month of the year, though this capability drops to meeting only 86% of critical load, averaged across all counties and months, when heating and cooling are considered critical. Backup performance is lowest in winter months where electric heat is common (southeast and northwest U.S.) and in summer months in places with large cooling loads (southwest and southeast U.S.). Winter backup performance varies by roughly 20% depending on infiltration rates, while summer performance varies by close to 15% depending on the efficiency of the central air-conditioning system. Differences in temperature set-points in Harris County correspond to a 40% range in winter backup performance and a 20% range in summer performance. Economic calculations show that a customer's resilience value of PVESS must be high to motivate adoption of these systems.

Community solar (CS) projects often face uncertain interconnection costs and fees associated with distribution grid infrastructure upgrades required to connect the project. These costs can determine the economic viability of a CS project, but they are difficult to assess. Cost uncertainty can discourage new projects and prevent communities from accessing the benefits of community solar projects. At the same time, CS deployment strategies hold potential to defer or avoid some distribution costs due to new loads. To mitigate CS interconnection costs, it is important to find least-cost combinations of distribution system infrastructure solutions (transformer upgrades, reconductoring, voltage regulators, storage), and to understand how location of CS projects within a feeder impact distribution grid upgrade costs. This study aims to quantify CS impacts on the distribution grid and provide policy and regulatory insights and CS deployment strategies to address them. It is the first analysis that has systematically studied the technical impacts of community solar projects on a wide range of distribution feeders using state-of-the-art optimization and power flow tools. The analysis employs Berkeley Lab’s novel Least-cost Optimal Distribution Grid Expansion (LODGE) model, a deterministic version of the REPAIR model, that optimally upgrades hundreds or even thousands of distribution circuits or feeders. This is the first application of the LODGE model. LODGE finds the least-cost portfolio of traditional distribution system upgrades to integrate CS in combination with alternative solutions, such as utility-owned storage and downsizing CS capacity. Working with a set of least-cost solutions per feeder allows us to benchmark, compare and find techno-economic trends in CS interconnection.