Since the start of the solar industry, people have tried to find out how they can make solar panels accessible to low incomes and historically disadvantaged communities. The obvious challenge is the cost barrier, which can at least be partially overcome by subsidies, net metet work programs, lease programs and cheap financing. But there are other obstacles that cannot be tackled so easily. For example, tenants have no possibility to install solar panels on the roof because they do not have their own roof, while landlords may not have an incentive to install solar energy if they are not responsible for paying the utility accounts; And if they are, how can tenants share in the cost savings? Even when houses with the owner are inhabited, the aging framter of outdated distribution grid and Sub-par electrical wiring in buildings can be insufficient to support distributed energy sources.
A community solar project in New York. Credit: Castillo Engineering
To tackle these problems with the solar access, the “Community Solar” ownership model has been developed, where a large PV system on solar energy, ranging in size from 20 kW to more than 1 MW, is owned and is managed by an electric cooperative or third parties on behalf of subscribers, who do not have access to their individuals of their individuals.
Energy storage is confronted with many of the same challenges as solar energy, ranging from cost barriers – which, again, can be tackled to a certain extent by subsidies and stimuli – to more difficult problems such as building possession and infrastructure challenges and perverse stimuli for landlords. It is worth asking: Can a comparable community -owned manufacture model make energy storage more accessible?
The intuitive answer is “yes”. However, the question is a bit more complicated when it comes to energy storage. Because although storage, unlike Solar PV, is able to provide countless services and offer multiple economic benefits, the specific services and value flows that it can offer depend a lot from where the storage source is: in front of or behind the utility meter.
An energy storage project in Vermont. Credit: Encore Renewable Energy
Front-of-the-meter (FTM) Battery storage systems are normally larger in size and benefit from economies of scale, easier access to wholesaler energy markets, such as regional capacity markets, and the possibility to perform contracts (toll agreements) to sell services to utilities. However, FTM systems are usually unable to offer valuable community benefits, such as backup power during grid or cost savings to specific buildings through demand cost management.
In the meantime, energy storage behind the meter (BTM) (BTM) can offer resilience and other community benefits, as well as energy cost savings for their guest facilities; But these systems are more expensive to build on the basis of a kilowatt hour And have had historical trouble gaining access to wholesale markets. BTM systems can be aggregated in virtual power plants (VPPs) to offer grater services, usually through programs managed by electric utilities; But these programs, while they are being widespread, are still not available in most areas throughout the country.
Recently three programs have emerged in three states that show elements of what could be a new resilient community Solar + storage model, whereby the benefits of BTM and FTM energy storage plus solar energy are combined to create fair, affordable and community-supporting SOLAR + storage systems.
California
One of these programs is ENERGY STORAGS HARESA first-in-the-nation community storage pilot developed by the Sacramento Municipal Utility District (Smud) in California. It shows how large FTM energy storage projects can be developed using a shareholder model comparable to the fact that is often used in community projects for a community solar. In this program, eligible commercial customers in the Smud service area can choose to make a prior payment to Smud for program participation. Smud bundles these customer investments with its own capital, buys a battery, installs it at a location that optimizes and operates the benefits of the net to maximize income and cost savings. Shareholders then receive a monthly on-bill credit in accordance with the number of shares they have. The program offers guaranteed savings to the customer without influencing their business activities, imposing maintenance obligations or requiring physical space in their company for a battery system. Although the Smud program is limited to commercial participants, there is no reason why a similar program is possible for both homes and commercial participation.
Vermont
The second program is Resilience zonesA groundbreaking community -fare model developed and demonstrated by Green Mountain Power (GMP) in Vermont. In this model, the utility uses its large batteries for the substation to offer backup power to the local community. This is achieved by the addition of strategically placed switches with which the local distribution set circuit to the island stands in the case of a widespread malfunction, so that all customers on the circuit offer persistent backup power. GMP’s first resilience zone project launched in Panton in 2022. The Panton project shows how FTM energy storage can offer resilience benefits, not for a single facility such as BTM batteries, but for all customers on the island circuit. However, it lacks the elements of the community property that customers, and especially historically disadvantaged communities, would enable to participate in the income and cost savings produced by the project.
New York
The third model was developed by New York as part of its state Solar for all the program. In this model, Community -Zonne, storage or solar – + storage projects register for the program when they request schedule interconnection. This creates a pool of participating community projects. The electrical utility buys electricity and services from the community projects through power purchase or toll agreements, retains a small administrative reimbursement and distributes any positive value among the already registered customers with low-income energy payability. These customers receive BILL credits on an opt-out basis, which eliminates the significant costs of marketing The program and the registration of participants, as well as the need for customers to buy shares. However, this model does not offer resilience benefits to the host community.
Take -away meals
Credit: AES
A new model that combines elements of the California, Vermont and New York programs would be able to offer community benefits, equity and economic optimization. Essential elements of this model would be:
- A large FTM battery and connected solar PV system is owned and is managed by a usefulness, municipal usefulness, electric cooperative or a third party who is contractually involved in the utility or cooperative.
- The project is at an existing substation or another convenient location to optimize networks and make participation in wholesale energy markets possible. (For an example of storage, see Sterling, Massachusetts, Municipal Solar + Storage System).
- Low-incomes customers are automatically registered on opt-out base. Other residential and commercial customers in the surrounding community can also choose to buy shares of the project. As a result, customers who cannot install a solar storage in their own buildings (due to the barriers, lack of space, lack of capital, infrastructure restrictions or other restrictions) can take part in a resilient, clean energy project in their neighborhood.
- The surrounding distribution set circuit is made island by the addition of switches that can insulate it during a grid failure. This means that the Solar + Storage Resource will support customers on the islandable circuit during a malfunction. This island, local circuit can include community or municipal buildings that can offer shelter, essential services such as gas stations and medical clinics and affordable homes with several families, as well as other houses and businesses on the circuit.
- Customers who have purchased shares in or are automatically subscribed to the Solar + Storage System received on-Bill Credits during normal activities, based on income from grid and market services that are supplied by the Solar + storage source.
- The costs are minimized because the FTM battery benefits from scale benefits and income is maximized because the FTM battery can work in ways that are not available for BTM batteries (eg Direct Grid and Wholesale Energy Market Services Provide or participate in utilization agreements as the property of third parties). Because the electrical utility is the only off-track of project services and customers with a low income are automatically registered, marketing and registration costs are minimized. There is no cost barrier for participants for eligible customers.
This resilient Community Solar + Storage model would offer equity benefits that are comparable to those offered by Community solar models, so that the costs, infrastructure and home ownership barriers for the adoption of clean energy in low income and historically disadvantaged communities are conquered. It would also record the economic benefits of larger, FTM storage, while the marketing and registration costs are eliminated. Moreover, in many states in many states, it could support network modernization and decoupling initiatives in many states by enabling utility companies to postpone investments in distribution grid and by offering an electric capacity during peak hours, which moves fossil fuel peaks. It is important that it could offer a mechanism for utility companies to promote energy storage and solar PV economically, in collaboration with communities, the coordination of utility and community interests.
Clean Energy Group will continue to develop this new model that we think it deserves a real-world demonstration. Interested parties must contact Todd Olinsky-Paul [email protected].
