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Miller, Cesca

Publications and source records attributed to Miller, Cesca.

Backup power or bill savings? How electricity tariffs impact residential solar-plus-storage usage in the United States

Adoption of paired solar-plus-storage systems has accelerated in recent years, driven by both the demand for backup power and a desire to manage utility bills. Tradeoffs between those two uses can arise through the reserve setting on the battery storage system, which serves to maintain a minimum state of charge in case of a power interruption. Our paper applies an economic framework to evaluate this tradeoff in terms of changes in bill savings and customer reliability value across reserve levels, considering how those tradeoffs depend on the underlying electricity rate structure and levels. The analysis is based on a representative set of load profiles, solar profiles, tariff designs, and stochastic power interruption events across ten different regions in the United States. We find that the opportunity cost of holding storage capacity in reserve, in terms of foregone bill reductions, outweighs any gains in reliability value from mitigated power interruptions in the majority of customer situations. Higher storage reserve levels increase total customer value only in specific circumstances, such as for customers with inferior reliability (10x average interruptions), with a very high value of lost load ($50/kWh), and with tariff or interconnection rules that disallow grid charging. However, even this result is dampened when considering tariff designs with higher price differentials that increase the opportunity cost of holding storage in reserve (e.g. import/export or time-of-use rates). Allowing grid charging in tariffs essentially eliminates the necessity to hold any storage in reserve in all sensitivity cases explored.

Electric resilience↗

Bill Savings vs. Backup Power: Evaluating operational tradeoffs for home solar+storage systems [Slides]

Adoption of residential solar photovoltaic+energy storage systems (PVESS) is driven by both bill savings opportunities and customer demand for backup power. Prior work by this team (Gorman et al., 2022; Gorman et al., 2023) explored PVESS backup power capabilities during long-duration power interruptions (e.g., due to severe weather events), when customers are assumed to be able to anticipate the event and charge their batteries in advance. In many cases, however, power interruptions are unpredictable (and often relatively short); for those types of events, a customer will typically set its battery to maintain some minimum capacity in reserve in case of an interruption, which reduces the capacity available for managing utility bills. This study evaluates this operational tradeoff to help customers and installers configure backup reserve settings, and to inform decision-making more generally about the customer value of backup power services compared to utility bill savings. This study utilizes Berkeley Lab’s PRESTO tool to produce stochastic simulations of (predominantly short-duration) power interruption events, and builds on an earlier case-study demonstrating PVESS backup performance during short-duration interruptions (Baik et al., 2023).

14 SOLAR ENERGY↗

Bill Savings vs. Backup Power: Evaluating operational tradeoffs for home solar+storage systems [Slides]

This study explores tradeoffs between the use of home solar+storage systems for backup power versus day-to-day utility bill savings. The study focuses specifically on the “reserve setting” available with most home battery storage systems, which allow the customer to maintain some minimum level of storage in reserve in case of an unforeseen power interruption. The more capacity that is held in reserve, the greater the customer’s ability to ride-through possible power interruptions, but less capacity is then available to manage utility bills on a day-to-day basis. This study evaluates this operational tradeoff across a diverse set of locations and residential electricity tariff structures, relying on Berkeley Lab’s PRESTO model to stochastically simulate power interruption events, and exploring a range of sensitivities, including variations in customer value of lost load (VoLL), interruption frequency, and other key drivers. The results show that, in most circumstances, the opportunity cost of holding storage capacity in reserve, in terms of foregone bill saving, tends to outweigh any gains in reliability value associated with mitigated power interruptions. This finding is robust across tariff structures and across most of the sensitivities considered, including those related to rate level, customer load level, and storage sizing. There are a limited set of circumstances where raising the reserve setting improves the overall customer value (comprised of bill savings plus reliability value). Specifically, that exception occurs when all of the following conditions apply: (a) the customer resides in a location with exceptionally poor reliability, (b) the customer has exceptionally high VoLL; (c) the customer is on a net billing rate or on a TOU rate that allows grid discharging but not grid charging; and (d), depending on the location, the price arbitrage differential on that rate is relatively small. In all other circumstances analyzed, total customer value declines with reserve level.

14 SOLAR ENERGY↗

The State of Demand Flexibility Programs and Rates

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.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Building efficiency, electrification, and distributed solar PV bill savings under time-based retail rate designs

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.

14 SOLAR ENERGY↗

Solar+Storage for Household Back-up Power: Implications of building efficiency, load flexibility, and electrification for backup during long-duration power interruptions [Slides]

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.

14 SOLAR ENERGY↗

Backup Power Performance of Solar-plus-Storage Systems during Routine Power Interruptions: A Case Study Application of Berkeley Lab’s PRESTO Model

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.

14 SOLAR ENERGY↗

Distribution Grid Impacts of Community Solar [Slides]

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.

14 SOLAR ENERGY↗

County-level assessment of behind-the-meter solar and storage to mitigate long duration power interruptions for residential customers

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.

14 SOLAR ENERGY↗

Evaluating the Capabilities of Behind-the-Meter Solar-plus-Storage for Providing Backup Power during Long-Duration Power Interruptions [Slides]

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.

14 SOLAR ENERGY↗