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Benefits of Customer-Sited Energy Storage

Edit: DS New Energy    Date: Sep 10, 2018

Customer-Sited Energy Storage will have the ability to produce, store and sell power. Energy storage has the potential to provide multiple benefits, including cost savings, enhanced grid resiliency.


Electricity end-users who are subject to or eligible for time-of-use (TOU) electric energy pricing can use storage to reduce electricity-related cost by what could be called retail energy time-shift. The energy time-shift involves storing of energy is stored when demand for energy and thus price for energy is low. That energy is used later, when demand and price are high, instead of purchasing high priced energy.The benefit is the difference in price between on-peak and off-peak less the cost for energy losses during the storage charge-discharge cycle. At the same time reduced maximum power draw during peak demand times. 


There are several states in the USA initiated program to boost customer-sited energy storage application.


The California Senate recently passed SB 700, which creates incentives for customer-sited energy storage in homes, schools, farms and businesses. Next, the bill moves to the state Assembly.


The 10-year rebate program, called the Energy Storage Initiative, provides up to $1.4 billion and lets the PUC set the total amount, said Laura Gray, energy storage policy advisor with the California Solar Energy Industries Association. It aims to make storage more accessible to consumers.


hawaii activated large customer-sited energy storage system. This storage endeavor is part of a three-year pilot to deploy electric storage systems at about 30 local businesses on O‘ahu, Maui, Hawaii Island, using Stem’s storage solution.


The platform goal is to help improve reliable electric service for customers of utilities with high levels of rooftop solar and other distributed energy resources. The project will be part of the U.S. DOE SunShot Initiative’s “Sustainable and Holistic Integration of Energy Storage and Solar PV (SHINES)” to demonstrate visibility and control of edge-of-network resources.


“Hawaii’s renewable energy growth and isolated location present unique and significant challenges for local grid operators,” said John Carrington, CEO of Stem. “Utilities and regulators are watching Hawaii to determine the viability of storage-enabled grid services. We are proud to be working with Hawaiian Electric to address those grid challenges with our technology.”


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