The addition of an energy storage system (ESS) to a solar project can result in increased renewable energy production, greater end user savings, and help meet Environmental, Social, and Governance (ESG) goals by lowering greenhouse gas (GHG) emissions. If you are considering a new solar project, or have existing solar, that could benefit from adding storage, here are some of the reasons why a clean energy intelligence platform (CEIP) solution from Stem could increase the value of your solar project.

How to increase utility bill savings

Standalone solar projects in leading C&I solar markets have become less effective at reducing customer bills:

  • In the top 3 markets for C&I solar – California, New Jersey, and New York – peak demand charges have grown annually for the past 5 years while energy charges have mostly remained flat.
  • Solar reduces overall energy charges, but because energy charges are flat to declining, they are a decreasing portion of customer bills.
  • Solar is not effective at reducing demand charges. A dispatchable resource, like energy storage, is needed to address this growing component of customer bills.

Energy Charges remain relatively flat while Demand Charges grow
Charts reflect common C&I tariffs in California, New Jersey, and New York
Source: Stem, Inc.

How to maintain the value of solar despite changes to NEM

Many states are changing their Net Energy Metering (NEM) policies to reduce the value of exported solar generation:

  • Hawaii has strict limits on solar export.
  • California is considering “NEM 3.0” rules that will potentially reduce the value of solar export. 
  • To help maintain value, storage paired with solar can consume extra solar generation that would have otherwise been exported and can discharge during times when energy is more valuable than the NEM compensation rate. 

 

How to respond when utilities shift on-peak periods 

Utilities that shift on-peak periods drive down the value of solar:

  • In several major markets, utilities shifted peak time periods to later in the evening when generating solar energy is not feasible. 
  • With on-peak periods shifting, solar no longer offsets the most expensive time of the day. 
  • In response, sites can discharge stored energy during the new on-peak hours to offset the site’s energy draw from the grid and reduce costs.

 

How Stem enhances the value of solar

Stem’s clean energy intelligent storage solution pairs batteries installed at solar sites with our Athena AI-driven software to help add value:

  • Solar projects can offset any loss in export value and the change in on-peak periods by adding a storage solution.
  • Pairing solar with storage allows for upsized solar projects, which increases solar production, and, in turn, offsets purchasing grid energy.
  • Solar Self-consumption (SSC) is the process of consuming excess, stored solar generation instead of exporting (click here for Stem’s FAQ on SSC).

 

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