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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.
ROI Calculations for Residential Rooftop Solar Energy: A User Guide
This scope outlines specific areas of technical assistance (TA) support to be provided to “Clean Energy Districts of Iowa (CEDI)”, Tama County, Montour, Iowa, under the DOE E2C Expert Match Program.
Development of a solar-powered residential air conditioner: Economic analysis
The results of investigations aimed at the development of cost models to be used in the economic assessment of Rankine-powered air conditioning systems for residential application are summarized. The rationale used in the development of the cost model was to: (1) collect cost data on complete systems and on the major equipment used in these systems; (2) reduce these data and establish relationships between cost and other engineering parameters such as weight, size, power level, etc; and (3) derive simple correlations from which cost-to-the-user can be calculated from performance requirements. The equipment considered in the survey included heat exchangers, fans, motors, and turbocompressors. This kind of hardware represents more than 2/3 of the total cost of conventional air conditioners.
Prototype residential solar-energy system-engineering analysis
Tests indicate performance very close to theoretical predictions. Major objectives were to verify system installation techniques, operation, and performance; to verify performance of individual subsystems; and to provide general test data base comparison with field data.
Residential solar-heating system - design brochure
Design brochure for commercially-available solar-heating system is valuable to architects, engineers, and designers. It contains information on system configuration, system sizing, and mechanical layout. Drawings and specifications of all components and typical installation details are included in appendix.
Prototype residential solar-energy system-installation package
Installation guidelines for architects and engineers discussing solar-heating system built in Togus, Maine are presented. Includes brief, functional description of system and summary of operation. Drawings complement text.
Residential solar-heating system-design package
Design package for modular solar heating system includes performance specifications, design data, installation guidelines, and other information that should be valuable to those interested in system (or similar systems) for projected installation. When installed in insulated "energy saver" home, system can supply large percentage of total energy needs of building.
Residential solar-heating system uses pyramidal optics
Report describes reflective panels which optimize annual solar energy collection in attic installation. Subunits include collection, storage, distribution, and 4-mode control systems. Pyramid optical system heats single-family and multi-family dwellings.
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).
Solafern solar system design brochure
A complete residential solar space heating and hot water system is described. Low maintenance, durable, and efficient air heating collectors are used. The collectors have a selective absorber and a tempered glass cover nearly one-quarter of an inch thick with an aluminum frame. The solar energy can be delivered directly to the living area when there is a demand; otherwise, it is stored in the form of hot water. Hot water storage is accomplished through the use of an air-to-water exchanger. The hot water storage is used simultaneously to preheat the domestic hot water, as well as to store energy for space heating.
SolarAPP+ Pilot Analysis: Performance and Impact of Instant, Online Solar Permitting
The National Renewable Energy Laboratory (NREL) led a collaborative effort to develop the Solar Automated Permit Processing Plus (SolarAPP+), a no-cost solar permitting software solution to address residential solar photovoltaic (PV) permitting resource constraints and streamline solar adoption processes among authorities having jurisdiction (AHJs). The SolarAPP+ is an online portal that automates permit plan review, enabling an instant permit approval process for code-compliant residential PV systems. Based on national model building, electrical, and fire codes, the SolarAPP+ automatically performs a compliance check of permit inputs against code requirements and produces an inspection checklist that can be used to verify installation practices, workmanship, and adherence to the approved design. NREL conducted a two-phase pilot with five participating AHJs and 16 solar contractors, spanning from November 2020 through December 2021, evaluating the ability of SolarAPP+ to deliver instant permits and its impact on four critical areas within each AHJ: permit review timelines; solar adoption timelines; AHJ time saved; and inspection results. The pilot confirmed that SolarAPP+ reduced permit review times to less than one day, reduced solar adoption timelines by an average of 12 days, saved an estimated 2,067 staff hours, and had comparable inspection results to those found in traditional permitting. The pilot further identified key lessons for improving SolarAPP+, including ways to streamline SolarAPP+ adoption, development of training resources, and expansion of supported products.
Implications of Battery Storage for Solar Net-Metering Reforms
Compensation structures for residential solar PV are evolving toward a model that incentivizes the use of battery storage to maximize solar self-consumption. Using metered data from 1,800 residential customers across six U.S. utilities, we show that batteries operated solely in this manner often provide no grid value, due to misalignment with market prices. Incentivizing customers to discharge storage in response to market prices, particularly on infrequent peak load days would greatly enhance storage dispatch value. However, doing so requires consideration of local distribution network impacts. We illustrate a net billing design that yields a storage dispatch value equal to 50-70% of its maximum potential market value, without materially degrading solar self-consumption levels or increasing local grid stress.
Rooftop Solar Deployment, Potential Electricity Rate Impacts, and the Timing of Revisions to State Net Metering Policy
Most U.S. states require utilities to credit residential solar photovoltaic (PV) output at the retail electricity rate, a structure known as net metering. However, 12 states have replaced net metering with alternative rate structures that reduce PV adopter bill savings. The share of households living in states that require net metering fell from around 84% in 2014 to around 57% by the end of 2023. Proponents of net metering revisions have argued that net metering can affect the electricity rates of customers without PV. This report analyzes the relationships between state PV deployment levels, potential electricity rate impacts on PV nonadopters, and the timing of revisions to net metering policy.
Decarbonizing via disparities: Problematizing the relationship between social identity and solar energy transitions in the United States
As solar adoption across the United States continues to grow, so do the gaps between rural and urban communities in how they choose to embrace these technologies, leading to serious questions of social justice and equity by researchers and policymakers alike. While recent studies have examined the racial and social justice elements of solar adoption alongside institutions' role in shaping pro-solar policies, codes, and code enforcement, an opportunity exists to discuss how the place and composition of the body politic in terms of race/ethnicity and rurality exists. This paper establishes a methodology for examining location and body politic composition concerning adopting all types of solar (residential, non-residential, utility-scale), utilizing the State of Georgia as a case study. Results indicate that the approach yields useful and informative findings; namely, there is a significant difference in adopting non-residential and utility-scale solar between rural and urban counties. We conclude by discussing further opportunities to expand on this analysis and the impact of assessing solar adoption in terms of value alignment between a body politic and the policies that shape the adoption of sustainable energy technologies. Finally, combining solar adoption information for the State of Georgia with Census data, this study compares solar adoption trends across counties--grouped by urban/rural classification and racial and ethnic majority.
Intersections of Disadvantaged Communities and Renewable Energy Potential: Analyses to Inform Equitable Investment Prioritization
Renewable energy development can bolster local economies through job creation, local tax revenues, and reduced energy costs; however, communities most in need of economic development and employment opportunities often see lower levels of renewable energy deployment. We sought to identify areas where indicators of disadvantaged communities intersect with high generation potential from cost- effective renewable energy opportunities. This presentation highlights the geospatial intersection of the technical potential and levelized cost of energy for three renewable technologies (residential solar, utility solar, and land-based wind) and three sociodemographic metrics (energy burden, unemployment, and employment in mining, quarrying, and oil and gas extraction). This research and the associated county-level data set are intended to inform national- and state-level energy-related assistance programs, economic development efforts, and infrastructure programs seeking to prioritize investments in disadvantaged communities.
Evaluating community solar as a measure to promote equitable clean energy access
Rooftop and community solar are alternative product classes for residential solar in the United States. Community solar, where multiple households buy solar from shared systems, could make solar more accessible by reducing initial costs and removing adoption barriers for renters and multifamily building occupants. Here we test whether community solar has expanded solar access in the United States. On the basis of a sample of 11 states, we find that community solar adopters are about 6.1 times more likely to live in multifamily buildings than rooftop solar adopters, 4.4 times more likely to rent and earn 23% less annual income. In this study, we do not find that community solar expands access in terms of race. These differences are driven, roughly evenly, by inherent differences between the two solar products and by policies to promote low-income community solar adoption. The results suggest that alternative solar products can expand solar access and that policy could augment such benefits.
Screening Tool for Equitable Adoption and Deployment of Solar (STEADy Solar)
The Screening Tool for Equitable Adoption and DeploYment of Solar (STEADy Solar) is a database and mapping tool designed to promoting clean energy investments for low-income communities across the United States. The tool indicates locations that may be eligible for the Investment Tax Credit bonus adders defined in the 2022 Inflation Reduction Act (IRA) and combines this information with demographics, social vulnerability, solar technical potential, solar economics (modeled net present value), and building counts by use-type. It can be used by states, municipalities, community-based organizations, developers, and researchers to identify sites where solar projects may be economical and where federal incentives may be available to support equitable adoption of solar. Specific values include: Areas eligible for the Energy Communities Tax Credit Bonus Program (including brownfield site counts) Areas eligible for the Low Income Communities Bonus Credit Program (including Tribal Lands, and covered affordable housing project counts) Areas categorized as disadvantaged by Justice40 Commercial and Residential Solar economics characterized by the Net Present Value and Simple Payback Period Total Population, Race, and Ethnicity Median Household Income, Poverty rate, Household Tenure Social Vulnerability Count of buildings, developable rooftop solar capacity (in kWdc) and estimated annual generation potential (in kWh) on four building types: Government General Services, Government Emergency Response, Grade Schools, and Colleges/Universities. The linked report describes the STEADy dataset metadata and presents high level insights from the data. The downloadable and formatted excel dataset makes it easy for users to gain insights for their locations. Supporting .csv and shapefiles provide users with the full data to run their own analyses on equitable solar siting.