While utilities continue to fight rooftop solar paneling, they are continuing to set themselves up for a loss, especially with the solar-plus-storage system. solar-plus-storage is an array of solar panels connected to batteries that store energy and power electronics with the ability to control the system and connect to a larger power grid.
Solar financing companies are working to help install solar-plus-storage systems, but people are still quite concerned with the expenses. There’s no denying that solar-plus-storage is expensive, but more often then not the value streams it can produce are being overlooked. So while the actual cost may be a bit misleading, the importance of the value streams is not.
Let’s get specific. Imagine an individual homeowner who owns a solar-plus-storage system thanks to the help of a solar financing company. Not only can that owner store power when it’s cheap, but he or she can use it to sell to the utility when it’s expensive and pocket the difference. This doesn’t always work when under net metering due to state policies, but under typical net metering, utility companies are obligated to buy surplus power.
Now back to this relationship between utility and solar. In order for utilities to capitalize on the grid-level benefits from solar-plus-storage systems, they must change their business models. So why haven’t solar financing companies or utilities seen these changes take place?
A large enough solar-plus-storage system has the capability of being entirely independent of the grid. In other words, it can take an individual homeowner completely off-grid. Utilities aren’t necessarily the biggest fans of rooftop solar because it’s reducing their revenue.
This is where utility companies find themselves in a tough spot. While rooftop solar costumers purchase less utility power they are also paying less for sunken investments, meaning the only way for utility companies to gain the same rate of return on those investments is to raise their rates, which becomes unappealing to customers and will drive more people toward installing solar.
Utilities may not be on board with solar paneling and solar-plus-storage systems, but that doesn’t mean you can’t be. There are multiple benefits to being able to store energy through batteries controlled by software that connects you to the grid. Solar financing companies can help you learn more about investing in solar and the values that come with the decision.
Alyssa Koenig is a renewable energy writer for Fusion 360, an SEO and content marketing agency. Information provided by Elements Capital Group. Follow on Twitter.