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74% Of Solar Power System Users Consider Adopting Energy Storage System
- May 02, 2018 -


74% of solar power system users consider adopting energy storage system


      According to EnergySage's survey, 74% of customers who purchased solar power in the solar market in 2017 indicated that they will consider adopting energy storage systems. The company’s Solar Marketplace survey report also provided evidence that the customer will pay for additional energy storage costs because procurement of residential solar power systems has already entered the SunPower, LG, Panasonic and other high-end brands. This shows that there will be more market opportunities.


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      The report shows that the price of energy storage systems continues to fall on a per-Watt dollar basis. However, its overall system size has increased, which actually means that the total cost of energy storage systems will increase. In terms of scale and price of residential solar power generation, it was 8kW at the end of 2016, which was 3.36 US$/W; at the end of 2017 it was 8.7kW, which was 3.13 US$/W.


      EnergySage's average cost of installation in Florida, Arizona, and Maryland is less than $3/W, and the average cost in some states is reduced to $2/W.


      The overall price of residential solar systems has dropped, and companies such as LG and Panasonic are entering the solar cell market. It is possible that these two companies can provide higher efficiency at considerable prices.

This chart shows that SolarEdge has become the dominant brand of residential solar power equipment. Considering its size and complexity, the increase in its installed capacity may be directly attributed to module-level electronics from SolarEdge and the company Enphase.


      This report provides some insight into potential market opportunities.

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      In less than a year, there will be more than 2 million residential solar systems in the United States, and one day, one-third of the approximately 120 million households in the United States may deploy solar energy systems.

If 74% of the 40 million households have installed a 30-60 kWh energy storage system that can provide one to two days of home electricity, then the total energy storage of the home may reach 880-1766 GWh. According to recent research, this will reach 80% of the total US solar + wind power generation and reach 16% - 33% of the US need for energy storage.


       While the 30% investment tax credit (ITC) still exists, the US National Taxation Bureau recently ruled that the converted energy storage system can use tax incentives, and it is expected that the number of home solar energy generating systems may exceed 2 million, so the utility-scale solar power system Has significant market potential.

Gregory F., Partner, Stoel Rivers LLP Jenner and Morten A. Lund said that the financing may make things more complicated.


       Jenner consulted the IRS to interpret the solar credit and commercial investment tax credit (ITC) assumptions. He said that the recent IRS ruling is encouraging, but users need to take a cautious approach. It is not yet clear whether the IRS provides companies with the same energy investment tax credit. The recently issued ruling applies to residential solar credit, which is different from the energy investment tax credit (ITC). Although many of the principles outlined by the US Internal Revenue Service can be translated into energy investment tax credits (ITCs), different answers may also be drawn. It is important to note that the IRS is currently reviewing regulations concerning energy storage and may not issue a ruling under the energy and energy investment tax credit (ITC) until the review is completed.


      Lund also elaborated on the complexity of project reorganizations that have been financed: residential solar energy comes from strictly unified documents and structures (usually bulk transactions), and the banking department usually does not allow any modifications to the system. In addition to the issue of physical risk, incremental transaction costs will be high. The Solar Power Purchase Agreement (PPA) is a relatively simple document, while the Solar + Energy Power Purchase Agreement (PPA) may be very complex (it is being drafted and implemented). This is not as simple as adding a battery to the project description, its operations and maintenance will also change, and the complexity of financing will increase. It is difficult to determine whether residential solar energy storage projects can be used as a single up-front unit to provide funding for them as they are now.


      Although residential users are interested in energy storage systems during the survey, they do not necessarily mean that they will invest or adopt them immediately. Therefore, EnergySage customers have already paid for solar power generation, and they show that customers tend to purchase high-end equipment and hardware. In addition, utility-scale developers will enter the energy storage market. All of this shows that energy storage will face a very strong market.


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