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Solar Stories From Across the World!
SolarEdge (SEDG) Launches Its First Battery Virtual Power Plant
A Yahoo Finance article by Zacks Equity Research
SolarEdge Technologies, Inc. SEDG recently unveiled its first Battery Virtual Power Plant program in Great Britain. With the launch, the company aims at boosting Great Britain’s National Grid ESO Demand Flexibility Service.
Rationale Behind the Launch
Grid stabilization and the proper and smarter usage of the energy produced with the help of SEDG’s innovative battery solution are the foundation of the program. SolarEdge’s innovative technology has been built in a way to maximize battery charge and discharge during peak demand, thus optimizing homeowners’ benefits while supporting the smooth running of the grid.
Moreover, as part of the program, homeowners can earn financial incentives by using their stored battery energy. Battery owners can also reap the benefits of even more financial incentives by transferring the surplus stored energy back to the grid.
Such programs by the company are likely to strengthen its customer base while boosting its presence in the lucrative global solar market. This will bolster SEDG’s revenue generation prospects.
Global Battery Storage Market’s Growth Prospects
The battery storage market globally has been continuously gaining momentum, buoyed by the increased adoption of renewable sources of energy like solar and wind and the need for a reliable and sustainable energy storage solution. Also, various government incentives to support the growth of the battery storage market, advancement in battery storage solution technology and increasing affordability will increase its demand.
All these factors have supported the growth of the battery storage market significantly, and one may expect this market to gain momentum in the days ahead. Per the latest report from Globe Newswire, the global battery storage market may witness a CAGR of 11.1% over the 2022-2026 period.
Such growth projections should benefit solar companies like SolarEdge, which continue to expand in the battery storage market through innovative technologies and programs like the latest one. Other prominent solar players like Enphase Energy ENPH, Canadian Solar CSIQ and SunPower SPWR can also reap the benefits of the expanding battery storage market.
Enphase Energy produces a fully integrated solar-plus-storage solution. Its IQ battery storage systems come with a usable and scalable capacity of 10.1 kilowatt hours (kWh) and 3.4 kWh. The company expects to generate its third-generation IQ battery, starting in North America and Australia in the first half of 2023.
The Zacks Consensus Estimate for Enphase’s 2022 earnings suggests a growth rate of 82.9% from the prior-year reported figure. Shares of ENPH have soared 54.5% in the past year.
In September 2022, Canadian Solar’s arm, CSI Energy Storage, launched SolBank, a proprietary designed and manufactured energy storage battery solution for utility-scale applications. CSI Energy Storage announced the expansion of its battery manufacturing capacity from the existing 2.5 gigawatt-hour (GWh) to 10 GWh by the end of 2023.
The Zacks Consensus Estimate for Canadian Solar’s 2022 sales suggests a solid growth rate of 39.1% from the prior year’s reported figure. Shares of CSIQ have rallied 48.3% in the past year.
SunPower Corporation’s SunVault Storage offers whole home backup in an outage from the only home solar and storage solution. On Sep 20, 2022, SunPower expanded its portfolio of energy storage products with the launch of the 19.5 kWh and 39 kWh SunVault
Article published by Matthew Mendoza 2/1/2022 with credits to: https://finance.yahoo.com/news/solaredge-sedg-launches-first-battery-115511016.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAHx1zQsOpW8HpNttFqVsBjF1y2eGJ1LaSj8hqT9mLUJs3Kp3V5ZbG2nrdDp_eInI2bfBoKM1Ws1UYmR6eASdILbS9u0caaVo3WFgd8X1mTy4rsFPeBLq_YlStMyf__ywpxPzFu6wBU5-Fb5cEXNa8dvS60iYo-_qEc4Cbu9CHVJa
Net Energy Metering 3.0-What Does this mean for Solar?
Net Energy Metering 3.0-What Does this mean for Solar?
Current solar owners will remain under their existing net metering policy
Solar owners under NEM 3.0 will earn around 75% less for the excess electricity they push onto the grid
Under NEM 3.0, the payback period for solar and battery storage systems will be roughly equal to the payback period of solar only systems
Californians can be grandfathered into NEM 2.0 by submitting an Interconnection Application for their solar system by April 13, 2023
20-year grandfathering period for NEM 2.0
20-year grandfathering period for NEM 2.0
Another crucial part of the NEM 3.0 decision is that the 20-year grandfathering period for NEM 2.0 remained intact. It was proposed, at one time, that the NEM 2.0 grandfathering period would be cut to 10 years. So, to see the grandfathering period remain at 20 years is a good thing for solar owners.
That means solar customers that submit a complete interconnection application before NEM 3.0 goes into effect on April 13, 2023 can remain under the much more favorable NEM 2.0.
What constitutes a complete interconnection application? According to CALSSA, a complete interconnection application includes a: Signed contract,Single Line Diagram (SLD),Contractors State License Board disclosure (CSLB),Consumer,
protection guide,Oversizing attestation (if applicable). It’s worth noting that you do not need a permit, a completed install, or a completed inspection to be grandfathered into NEM 2. However, there is a three year deadline to complete the actual construction of the solar system as long as the paperwork is filed and accurate. Modifications that increase the size of the system made after NEM 3.0 takes effect may cause you to lose your NEM 2.0 status.
Bottom line: There is still time to start a solar project and submit an interconnection application before NEM 3.0 takes effect.
NEM 2.0 customers can add battery storage later
NEM 2.0 customers can add battery storage later
Another important nugget of the NEM 3.0 decision is that NEM 2.0 can add battery storage in the future and retain their NEM 2.0 status.
There are two common scenarios where this comes into play: If you currently have a solar system in California, you won’t be transitioned into NEM 3.0 if you add battery storage after April 13, 2023, or If you are grandfathered into NEM 2.0 by submitting an interconnection application for a solar system without battery before April 13, 2023, adding battery storage later will not change your NEM 2.0 status
There are several advantages to pairing solar and battery in California, so being able to add battery and remain in NEM 2.0 is a big win for Californians.
The Utilities’ Perspective
The Utilities’ Perspective
Utilities are responsible for providing reliable, safe, and affordable energy to all users of the electric grid. They have been concerned with potential cost shifts from solar customers to non-solar customers including many low-income customers who are less financially capable of adopting distributed energy resources including onsite solar and energy storage.
Further, utilities cite their proposal as an incentive for customers to pair storage with their home solar system.
As outlined in their initial proposal, NEM 3.0: “Provides a storage incentive through non-tiered cost based TOU rates and ensures customers pay for costs incurred to serve them through a customer charge.”
In practice, this means that customers who add a battery storage system will be able to avoid some of the higher rates associated with pulling power from the grid in the evening, when time of use rates are higher.
When Will NEM 3.0 Take Effect?
When Will NEM 3.0 Take Effect?
CPUC unanimously voted to pass NEM 3.0 on December 15, 2022. This kicked off a 120-day sunset period for NEM 2.0, giving investor-owned utility customers until April 13, 2023 to submit interconnection paperwork and be grandfathered into NEM 2.0.
What does NEM 3.0 mean for solar?
What does NEM 3.0 mean for solar?
NEM 3.0 reduces the export rate for residential solar electricity by around 75%, from an average of 30 cents per kWh to 8 cents per kWh. Lower export prices will increase the payback period for solar owners under NEM 3.0 and decrease the overall savings.
This effectively increases the value of pairing battery storage with solar. Under the new rate structure, the return on investment for solar and battery is similar to that of solar only, but with the added benefits and independence of having a backup power source.
No new solar taxes
No new solar taxes
The new rate structure will substantially eat into solar savings and drag out the payback period of going solar, but there is a shred of good news in the version of NEM 3.0 adopted by the CPUC. A series of charges and fees for solar owners — casually known as “solar taxes” — did not make it into the approved version of NEM 3.0.
These fees were, at one time, expected to add around $60 a month to solar owners’ utility bills. They are now off the table.
A push for pairing solar and battery
A push for pairing solar and battery
A major theme in the NEM 3.0 text is a push for pairing solar with battery storage. That’s because the issue isn’t generating solar electricity in California; it’s storing and using it since peak solar production doesn’t align with peak energy consumption.
If we go back to our handy import/export price graph, you’ll see that export prices skyrocket from 7-8 pm. That’s because energy demand is peaking while solar generation is winding down for the night — which is a problem throughout the state.
Lower solar export rates
Lower solar export rates
The biggest change from NEM 2.0 to NEM 3.0 are the rates at which solar owners are compensated for the excess electricity they put on the grid (known as export rates).
Under most net metering policies, including NEM 2.0, solar owners are credited for the full retail value of each kWh of electricity they put on the grid.
Under the NEM 3.0 proposal, the value of solar exports are no longer be based on retail rates. Export prices are be based on the “Avoided Cost Calculator” and vary by the month and hour.
Since this structure is even more complicated than it sounds, here’s a chart to summarize how people will be paid for their excess solar production. The gray bars indicate what homeowners pay per kWh for grid electricity and the black bars indicate the rate at which solar owners are be credited for excess solar production under NEM 3.0. Article Published by Matthew Mendoza 01/05/2023 with credits to https://www.solar.com/learn/nem-3-0-propsal-and-impacts-for-california-hmeowners/
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