Residential Home Battery StorageCommercialization Insights
Chris MorisDirector of Advanced Products
September 17th, 2018
Growth From Solar + Storage
Source: Greentech Media
June 2017 McKinsey & Co.
article January 10th 2018
● Overall market capacity projected to grow 12x between 2017 and 2022● Mix shift towards Residential BTM deployments growing at over ~100% YoY● Solar penetration at >20% in Hawaii & overall USA at ~2% → long term growth coming● Volume largely fueled by California and Hawaii due to progressive structures, incentives,
and strong savings● Tailwinds from Puerto Rico and other climate stricken locations accelerate growth
3
Sunrun Brightbox: Residential solar+storage available in a growing number of markets
Markets
● Launched in 2016: California and Hawaii● In 2017: Arizona, Nevada, and New York● In 2018: Florida, Massachusetts, and Puerto Rico● 100% of Hawaii & PR, >20% of California Sales
Offering
● Customer receives benefit of backup power and hassle-free Time-of-Use bill management
● Options:○ Purchased Cash or Loan (12 and 20 yr)○ Leased/PPA in $0 down monthly form or
prepaid for lowest energy rate● Storage aligns best with a managed model for
O&M, programming, and Grid Services○ >90% of Sales are 20 year PPAs/Leases
1,000’s of customers booked at 10-30 kWh per home with rapidly accelerating adoption
Configurations & Capabilities
Components
● Electrical Panel - Supplies home with electricity via breakers
● Generation Meter - Can be used for Utility measurement of generation, e.g. “REC” meter
● Current Transformer - Measures home energy consumption
● Backup Panel - Selected backup circuits● Battery - High voltage lithium-ion pack
MM
CT
INV
BACKUP CIRCUITS
BATTERY
GRID
Typical High Voltage DC Configuration
HOME
CommunicationsAC conductorsDC conductors
Existing conditionSunrun sourcedSolarEdge sourcedLG Chem sourced
PANELS
Capabilities & Use Cases
Smart inverter controls the solar and battery based cloud connected programming:
● Time-Of-Use● Backup● Grid Services● Self-Supply
Time of Use: California & Arizona
5
Solar charges the battery in the morning
Battery discharges during “peak” hours
Battery State of Charge
Peak Hours
Peace-of-Mind with Smart TOU + Battery Backup
6
Brightbox with 1 Battery Brightbox with 2 Batteries
Can backup critical loads for typically 10+ hours
Example critical loads (25A max):● Refrigerator● Garage door● Lights, fans, electrical outlets● TVs, laptop, wireless router● Other lower power appliances
as needed
Can backup the whole home for typically 8-10 hours
Example whole home (60A max):● Critical loads
+ Air Conditioner as needed+ Oven/Stovetop as needed+ Electric hot water heating+ Pool pump
GOAL: Power the home until the sun comes back up to recharge the battery
Backup: All States
7
Grid Services
8
Virtual Power Plant: Neighborhood Run by the Sun
Telemetry
Dispatch
SEP 2.0, IEEE 2030.5, OpenADR, etc.
9
Solar-Only: Off-Peak Exports
Energy generation delivered to the grid based on solar production
10
Solar + Storage: TOU Management
Energy generation shifted on a fixed schedule to during Utility peak
11
Solar + Storage: TOU & Grid Services
Control exports
Aggregate across homes to reduce
grid peak
Energy generation delivered precisely to offset Utility peaks with a dynamic signal
12
Storage Policy Growth Enablers
Utility Rate Structures
+ Time-Of-Use: CA SDG&E $0.25/kWh → $0.48/kWh valuing storage for peaks
- Demand Charges: Not relatable to homeowners in aggregate, confusing to customers
- Net-FIT: Reduced compensation for exports is confusing vs TOU
Storage Incentives
+ CA SGIP: Early storage incentive valued at $500/kWh capacity decreasing over time
+ MA SMART: Performance based incentive equating to roughly 4c/kWh of value for throughput
Incentive Focus:
● Simplicity & transparency● Reasonable timelines● Customer friendly
administration
Access to Services Markets
+ CA Multi-Use Applications: “Resources interconnected in the customer domain may provide services in any domain”
+ NY REV: Establishing BTM as “qualified facilities”
+ Hawaii GSPA: Tariff based program for participating in grid services market
- Non-Export Limits: In some states prohibiting any participation
Goal: Send value signals so that storage is used to benefit the grid and all ratepayers, not just for home backup
Goal: Expedite the transition to sustainable renewable energy
Storage Technology Growth Enablers
Capabilities & Features PerformanceCost Reduction
Goal: Make storage relevant Goal: Lower the barrier to entry and increase the value creation for storage
Consumption Monitoring: Customer home energy insights and grid data
Whole Home Backup:Backup of any home load without choosing essentials
Safety Improvements:From alternative chemistries such as LFP
Reduce Packaging & Integration Overhead:Many components from different vendors become a single package
Solid State Technology:Transition off of chemical storage onto purely electrical storage
Li-Ion Maturity:Organic improvement in energy density from R&D driven by EV volume
Improved Degradation:● EOL capacity from
70% → 90%+● Lifetime extension
from 10 → 20 years
Improved Cycling Losses:Efficiency from 87% → 94%+
Consumer Facing UIs/UXs:Energy Apps for mobile and desktop in their infancy
Fleet Aggregation Capabilities and Products:Enable revenue from storage grid & ancillary services
Environmental Conditions:Extending temperature ranges from 45C → 55C+