What is the solar energy storage system?

09 Mar.,2024

 

Your Guide To Solar Energy Storage Systems

Solar energy storage systems (solar batteries) capture excess energy during the sunniest times of the day. This power is then stored in the battery and ready for use at night when the solar panels aren’t producing energy. Batteries also provide backup power for grid-tied solar systems during power outages.

Although solar panels provide clean energy and help reduce energy costs, they have two shortcomings: they only generate power when the sun is shining, and they can’t store excess energy on their own. 

Solar energy storage technologies solve this problem and enhance the efficiency of solar systems. Solar batteries capture solar panel-generated electricity, store it, and release it when needed.

How Does Solar Energy Storage Work?

Solar energy storage involves gathering excess energy from a solar panel system and storing it in another form for later use.

Solar panels generate maximum energy during peak sunlight hours. With a solar energy storage system, you don’t have to use all the electricity your solar array produces. The storage devices save surplus solar energy in chemical, thermal, or kinetic form and then release it when there’s peak demand. 

Therefore, a solar-plus-storage system is more efficient as it balances power supply with demand. 

Do You Need A Solar Energy Storage System?

You only NEED an energy storage system for an off-grid solar system. For all other applications, it’s a nice-to-have that will boost your system’s performance and give you greater energy independence.

Most homeowners and businesses that install solar energy systems have their solar panels tied to the electric grid. This allows them to still draw electricity when their solar panels aren’t working (i.e. night time or periods of little sun). Being grid-tied also enables you to send excess generated power back to the utility company to earn credits and lower your electric bill (net metering billing). 

But grid-tied systems present some challenges for solar system owners:

  • Solar systems won’t work during power outages (unless paired with a solar battery), and
  • They only generate electricity when the sun is shining.

Those are the two primary reasons most people invest in a solar battery system.

Other reasons to consider a solar energy storage system include:

  • If you want to go completely off-grid: You don’t have to be tied to your local utility when you can store excess power from your solar panels. An off-grid system uses solar from the sun during the day and draws from the battery at night or when the sun isn't shining.
  • You’ll enjoy power resiliency: Since solar energy production depends on weather elements, temperatures, and obstructions, you can’t enjoy a consistent power supply. But with energy storage, you have backup power during outages or unfavorable weather conditions.
  • Power storage saves you money: A grid-tied system exposes you to rising electricity costs, depending on energy demand and supply. You can save money on electric bills by being self-sufficient. 
  • You’ll reduce your carbon footprint: A solar energy storage system provides a continuous clean energy supply and minimizes reliance on fossil fuels.
Homeowners that wish to go off-grid or gain greater energy independence should consider a solar storage system.

Types Of Solar Energy Storage Solutions

Solar energy storage solutions fall into different categories depending on what form of energy they store.

Batteries Energy Storage Systems (BESS)

Batteries energy storage systems (BESS) are the most practical solar energy storage solutions for homeowners. They’re rechargeable solar batteries that capture solar energy and store it in chemical form.

So when your solar panels absorb sunlight, the batteries convert the DC (direct current) energy to AC (alternating current) and bank it for later use.

Here are the main types of solar batteries:

  • Lead-acid batteries are the most common battery types since they’re cheap. But they’re bulkier and have a lower depth of discharge (DoD) and shorter lifespan.
  • Lithium-ion batteries are lighter and more compact than lead-acid batteries. Their DoD is also higher, making them more pricey. But they’re increasingly becoming popular due to their efficiency and longer shelf life.
  • Nickel-cadmium batteries are small, compact, and durable. They can also work over a wide temperature range, making them practical in extreme climates. Their only downside is cadmium’s toxicity, making disposal unsafe. 
  • Flow batteries are a new battery technology with an expandable capacity. They contain water-based electrolytes that flow in two tanks (battery chambers). 
Commercial and utility-scale solar storage systems may comprise large batteries or use other energy storage methods.

Pumped Hydro Energy Storage (PHES)

Pumped hydro energy storage (PHES) involves two-reservoir systems installed along power grid transmission lines. PHES systems comprise the largest percentage (about 93%) of utility-scale energy storage in the US. They store and release renewable energy by pumping water in and out of the reservoirs, depending on the energy supply and demand.

When there’s excess solar energy, the PHES system uses it to power turbines that pump water into the higher reservoir. Then, when supply drops and demand increases, the system releases water back into the lower reservoir, generating kinetic energy.  

PHES is an inexpensive and efficient way of storing solar energy. But setting it up requires ample space, regulatory permits, and a complex process. It’s generally only used in commercial applications, but may be suitable for large off-grid systems that power a homeowner’s farm.

Thermal Storage Systems (TSS)

Thermal storage systems (TSS) store surplus solar power in insulated tanks using fluid like molten salt or solid matter. TSS systems are practical storage solutions for companies because:

  • They have a large storage capacity.
  • They can also turn saved thermal energy into superheated steam to run turbines, producing electricity.
  • They’re reliable and long-lasting - the molten salt can be cooled and heated for 30 years.

However, installing TSS systems can be expensive since the systems require plenty of space. 

Flywheel Energy Storage (FES)

Flywheels have large rotor blades that spin in a vacuum, producing a force that powers turbines. This storage system stores excess power in the form of kinetic energy and turns it back to electricity upon demand. 

FES systems are more efficient and have faster response rates than solar battery storage systems. But their installation requires higher upfront costs and a bigger space. 

Compressed Air Energy Storage (CAES)

These systems use excess energy to compress and store air in underground tanks (caverns). CAES systems release the compressed air upon demand, using it to power turbines and produce electricity. 

They have higher efficiency and reduce carbon emissions by minimizing the use of natural gas. CAES systems are also durable and have a high storage capacity. On the downside, they require specific underground locations to set up, so they are rare.

How Much Do Solar Energy Storage Systems Cost?

The cost of solar energy storage systems is highly dependent on several factors.  

The installation cost of a solar energy storage system is calculated in dollars per kilowatt-hour ($/kWh). 

The following factors determine how much you’ll spend in setting up a solar energy storage system:

  • Type of solar energy storage system: The installation costs will depend on the type of solar energy storage system. For instance, a PHES system costs around $106 to $200/kWh compared to $400 to $1,000 for a BESS system. Also, the price of battery storage systems varies depending on the type of battery, its chemistry, capacity, and efficiency.
  • The capacity of solar energy storage system: It’s relatively cheap to install energy storage systems with a smaller energy capacity. For example, a 10kWh solar battery costs $4,000 to $10,000, while a 25kWh battery could be around $10,000 to $25,000.
  • The size of the solar-plus-storage system: Your energy needs determine the size of the system to install, which affects the upfront and maintenance costs. Hence, residential solar-plus-storage systems are generally cheaper than commercial systems since they’re smaller. However, large-scale commercial projects can benefit from economies of scale and have lower costs per kilowatt-hour of capacity.
  • Time of installation: You’ll save money if you pair a solar energy storage system with your initial solar installation than if you set it up later.
  • Location: Where to install a solar energy storage system determines how much it will cost. For instance, systems installed in remote or off-grid areas are expensive.

Even the most ardent solar evangelists can agree on one limitation solar panels have: they only produce electricity when the sun is shining. But, peak energy use tends to come in the evenings, coinciding with decreased solar generation and causing a supply and demand issue. The thing is, solar panels often pump out more than enough energy during those lower demand hours when the sun is shining to meet peak demand later in the day. This means that efficient solar energy storage can open up a wealth of possibilities for homeowners and businesses alike.

In this blog, we’ll look at solar energy storage in-depth, its benefits, and even tools for modeling it on your solar installs.

Click above to learn more about selling solar under NEM 3.0.

What are the benefits of storing solar energy?

Storing this surplus energy is essential to getting the most out of any solar panel system, and can result in cost-savings, more efficient energy grids, and decreased fossil fuel emissions. Storing solar energy has a few main benefits:

  • Balancing electric loads

    . If electricity isn’t stored, it has to be used at the moment it’s generated. Energy storage allows surplus generation to be banked for peak-use. As far as renewable energy is concerned, storing surplus power allows the lights to stay on when the sun goes down or the wind stops blowing. Simply put, energy storage allows an energy reservoir to be charged when generation is high and demand is low, then released when generation diminishes and demand grows.

  • Filling in the gaps.

    Short-term solar energy storage allows for consistent energy flow during brief disruptions in generators, such as passing clouds or routine maintenance.

  • Energy resilience.

    The energy grid is vulnerable to disruptions and outages due to anything from wildfires to severe weather.

    Solar energy storage creates a protective bubble during disruptive events by decentralizing where we get our energy from.

  • Reducing carbon footprint. With more control over the amount of solar energy you use, battery storage can reduce your property’s carbon footprint in areas with fossil fuel-based utility power. Large solar batteries can also be used to help charge electric vehicles and turn any appliance in your home into a “solar-powered” device.
  • Savings from electric bills.

    If you live in a state that has no solar net energy metering, or policies that don’t fairly compensate you for the solar energy you generate, battery storage can help lower your utility bills while consuming more of your own power. So, while you may not be compensated as much for excess energy sent to the grid, any additional solar power generated and stored throughout the day can be discharged from a battery at night or on cloudy days in the place of utility consumption.

  • California Net Billing Tariff (NEM 3) considerations. One of the big components of NEM 3 is that it has, “notably higher on-peak charges and lower off-peak charges” for electricity. Likewise, the export rate is lowest is the middle of the day, when solar energy is plentiful. Since “peak” hours are from 4pm – 9pm, this means, generally, that customers are exporting power to the grid when the rate they receive is the lowest, and using grid power at peak times, when it’s most expensive. Enter battery storage: Any solar energy that can be stored in a battery during non-peak hours and used during peak times will be much more valuable for the consumer. See Auroroa’s new battery self-consumption features by clicking the “Let’s go!” button in the image below, then learn more details in our blog: Explaining and modeling California’s Net Billing Tariff.

How is solar energy stored?

Solar energy storage can be broken into three general categories: battery, thermal, and mechanical. Let’s take a quick look at each.

What is battery storage?

Batteries are by far the most common way for residential installations to store solar energy. When solar energy is pumped into a battery, a chemical reaction among the battery components stores the energy. The reaction is reversed when the battery is discharged, allowing current to exit the battery. Lithium-ion batteries are most commonly used in solar applications, and new battery technology is expanding rapidly, which promises to yield cheaper, more scalable battery storage solutions. In fact, U.S. energy storage is expected to reach nearly 7.5 GW annually by 2025, a sixfold growth from 2020, representing a market worth $7.3 billion.

What is thermal storage?

Thermal energy storage uses various mediums — such as water or molten salt — to absorb and retain heat from the sun. This heated medium is stored in an insulated tank until the energy is needed, usually to boil water for energy generation.

What is mechanical storage?

Mechanical energy storage takes advantage of the potential energy of an object to generate electricity. Mechanical storage methods convert surplus electrical power into mechanical power, which is converted back into electricity for later use. There are three prominent mechanical energy storage systems:

  • Flywheel.

    This method uses surplus electricity to spin a flywheel, which later generates electricity to supply quick energy during peak demand times.

  • Pumped hydro.

    With pumped hydro, water is pumped uphill to a reservoir located above turbine generators. The water is allowed to flow through turbines and generate electricity when demand is high.

  • Compressed air.

    With this energy storage system, compressed air is pumped into large vessels such as a tank or underground formation. The air is released to generate electricity during peak demand.

Click above to download the Storage Sales Cheat Sheet.

The best way to store solar energy

There’s no silver bullet solution for solar energy storage. Solar energy storage solutions depend on your requirements and available resources. Let’s look at some common solar energy storage options for commercial and home applications. 

Commercial solar energy storage

Utility companies and other businesses generally have bigger budgets than individual households, making mechanical and thermal storage viable options. Though costs for these storage methods can be high, they help utilities keep up with peak energy demand.

  • Grid energy storage with next-generation batteries. 2020 was a record year for new energy storage in the United States. In the third quarter alone, the nation

    deployed

    476 MW of new storage, a 240% increase from the record-breaking previous quarter. Most of the new deployments are one-hour front-of-the-meter (FTM) storage solutions, but nonetheless offer a promising look into the future of commercial solar energy storage.

  • Compressed air

    . The most

    recent government estimates calculate compressed air

    costs at $105/kWh, making it the most cost-effective mechanical storage option for large-scale applications.

  • Pumped hydro.

    Surplus solar energy can be used to pump water uphill, creating a massive amount of potential energy.

    Current pumped hydro costs

    are around $165/kWh, making it the second-best option for mechanical energy storage at scale. It’s only available in certain areas, however, as new pumped hydro involves high upfront costs and significant regulatory hurdles.

Home solar energy storage

Residential solar has myriad benefits, including resiliency, cost savings, and decentralization of electrical production (otherwise known as “virtual power plants”). But the commercial energy storage methods we discussed above are likely cost-prohibitive for the average homeowner. Thankfully, battery storage can now offer homeowners a cost-effective and efficient way to store solar energy.

Lithium-ion batteries are the go-to for home solar energy storage. They’re relatively cheap (and getting cheaper), low profile, and suited for a range of needs. Other batteries commonly available for residential use include saltwater batteries and lead-acid batteries.

Regardless of the battery type, home backup batteries allow homeowners to save energy during high production, low demand times (i.e. during the workday) for use during high demand periods when generation diminishes. Home solar energy storage inherits the same benefits of large-scale solar energy storage, translating into resiliency, uninterrupted energy, and cost savings. And these benefits go directly to the homeowner.

Technology to help design solar battery storage

Designing a storage system along with a solar installation used to be labor-intensive and include a fair amount of guesswork. Now, software like Aurora‘s includes battery storage as part of its offerings.

Using Aurora Solar’s Battery Storage Tool, solar installers can analyze load off-set, calculate the projected price of a project, forecast smart battery sizing recommendations based on customer priorities, and present it to the customer in a compelling, easy-to-understand way.

Aurora has also introduced battery self-consumption modeling. You can learn more here.

So, while the technology used to store solar energy may seem complicated or overwhelming to some customers, Aurora can help you break down the complexities for customers with interactive and easy-to-understand models of performance and savings. 

Click above to learn more about modeling battery storage for self consumption in Aurora.

How to Store Solar Energy: FAQ

Click here to learn more about Aurora’s battery self-consumption modeling capabilities.

Conclusion

The sun offers a limitless supply of clean power, but harnessing it can be a challenge. Thankfully, several options for commercial and residential storage offer proven solutions for storing solar energy, and emerging technologies are being developed daily. For commercial applications, mechanical storage options provide effective solutions to harnessing solar energy when it’s needed most, and grid-scale battery storage will likely become available soon. For residential solar, battery storage is the best option, with a variety of affordable units on the market. Together, these solutions provide an effective portfolio for storing solar energy and provide a compelling argument for further solar deployment in commercial and residential settings. 

To learn more, visit these resources:

To see battery self-consumption modeling in action, schedule a quick demo.

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