PV Storage and Differential Tariffs

The advent of highly variable pricing electric tariffs, smart meters and Roof top Solar PV provides new possibilities for home owners and utilities to reduce peak costs and carbon emissions. Such applications also have the potential to provide the owner with a revenue stream from the utility in the form of capacity credits.

These credits alongside smaller energy transfer revenues can significantly accelerate the adoption of local storage with paybacks of under six years. New high performing batteries will enhance the market for solar PV. The home or office now becomes a multi source generator and possible load stabilizing connection centre for the grid.

The addition of battery capacity to the grid via electric vehicles comes at minimum cost to utilities as these costs are born by the vehicle owner. Volume manufacturing of the automotive industry brings the projected cost of advanced batteries down to make dedicated stationary storage possible. Batteries in PHEV are generally cycled between 40% and 80% charge so when they need replacing they will have sufficient life for household-grid stationary applications at no extra cost.

These sources, although not large in energy terms, can provide high levels of short term power allowing for power smoothing and transient suppression. These large power pulses can be used by the utility for "up and down" regulation, power outage ride through and for industrial machine requirements. Sunlight or load variations also cause power drains for brief periods of time and support is required while additional systems come online.