Influence of business models on PV-battery dispatch decisions and market value: A pilot study of operating plants
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Conventional cyclic degradation assessment for batteries is often limited in its ability to provide real-time degradation information during operation, because the estimation of degradation is commonly performed after a specific evaluation period. Modified methods can provide real-time evaluation but at the cost of high computation complexity. This paper proposes a novel estimation method that addresses these limitations. It efficiently determines the incremental degradation of any two consecutive state-of-charge (SOC) samples during battery operation, thus enabling real-time estimation. To validate the proposed method, measurement data from lithium-ion phosphate (LFP) battery testing was adopted, and the results were compared with the conventional model and the measured capacity. The results demonstrate accuracy over the evaluation period in terms of cumulative degradation, and a reduced computation cost compared with other methods. This approach has benefits in various applications, especially in cases where batteries experience irregular charging and discharging stress cycles such as PV and battery hybrid plants.
This poster covers recent updates to the NREL System Advisor Model's battery model that can be coupled to the PV model to add value to both front of meter and behind the meter systems. Topics include new dispatch algorithms focusing on smoothing the output of a PV plant to meet ramp rate requirements and responding to price signals to maximize system revenue, validated battery lifetime models, grid outage simulations and resiliency metrics, and the new levelized cost of storage (LCOS) metric. We will also share preliminary results from NREL analysis projects using these features.
In this study, we explore how the energy and capacity values of coupled systems comprising solar photovoltaic arrays and battery storage (PV-plus-battery systems) could evolve over time based on the evolution of the bulk power system. Using a price-taker model with simulated hourly energy and capacity prices projected from the present to 2050, we simulate the revenue-maximizing dispatch of a range of DC-coupled PV-plus-battery configurations in three locations in the United States. These configurations are defined by the inverter loading ratio (ILR, the ratio of the PV array capacity to the inverter capacity, which we vary from 1.4 to 2.6) and the battery-inverter ratio (BIR, the ratio of the battery power capacity to the inverter capacity, which we vary from 0.25 to 1.0). Based on each configuration's total value, we estimate the breakeven costs needed to justify each incremental increase in ILR (holding BIR constant) or BIR (holding ILR constant). We find that, in a future with low-cost renewable energy technologies, PV-plus-battery system ILRs can be economically increased to around 2.0-2.4 at a BIR of 1.0, depending on solar resource. Our results indicate that a likely evolution of PV-plus-battery system design will be increasingly greater battery power capacity to mitigate the declining PV capacity value, which will, in turn, enable increasingly higher ILRs to further increase energy value. The extent to which PV-plus-systems will be deployed with increasingly higher ILRs depends primarily on whether PV cost declines outpace declining value and increasing curtailment over time.
Jurisdictions are increasingly adopting compensation structures for distributed PV and PV-battery systems that price exported energy lower than energy consumed onsite (net billing rates). Standard methods for calculating the bill savings from PV and PV-battery systems were developed for net metering structures, and applying these same methods to net billing structures (such as using Typical Meteorological Year weather with actual year load) introduces bias errors that underestimate PV-battery system bill savings by between 1.5\% and 9\%, depending on the utility rate. We assess the magnitude of these errors and compare them to other sources of uncertainty when estimating the bill savings from PV and PV-battery systems under more complex utility rates.
With the rapid increase in battery attachment rates for PV systems and the continued qualification of storage for the ITC under OBBB, accurately characterizing PV-coupled batteries is becoming increasingly critical for the PV industry. This presentation will explore the key gaps in current best practices for modeling PV-coupled battery storage, including challenges such as battery thermal conditioning, the influence of dispatch strategies on battery value, the limitations of oversimplified degradation and performance models, and the absence of a centralized database containing sufficient battery parameters for accurate modeling. For behind-the-meter applications, we will also address issues like mismatched solar resource and load profiles, as well as uncertainties in future utility rates. Where applicable, we will quantify the impacts of these gaps on the accuracy and uncertainty of modeling efforts and highlight ongoing research aimed at addressing these challenges.
This project advances the understanding of how roof solar PV systems and battery energy storage systems (BESS) can be effectively deployed in multifamily residential buildings, a sector that has historically faced barriers due to misaligned incentives between landlords and tenants. By leveraging high-resolution building stock data and simulation tools, the research demonstrates how energy consumption patterns vary across building types, climates, and occupant characteristics, and how these variations influence the optimal sizing and operation of distributed energy resources. A key contribution is the development of a publicly accessible, web-based tool named RESIDE (Residential Energy Systems & Infrastructure Data Evaluation) that allows users to explore building energy use and evaluate solar and battery configurations without requiring specialized expertise. This significantly lowers the barrier to entry for stakeholders such as property owners, utilities, and policymakers. From a technical perspective, the project shows that integrating rooftop solar PV with battery energy storage can substantially reduce electricity costs and peak demand through strategies such as energy arbitrage and peak shaving. The modeling framework incorporates real-world constraints, including time-of-use electricity pricing and battery degradation, providing realistic and actionable insights. Economically, the results indicate that properly sized systems can deliver meaningful cost savings, improving the feasibility of energy investments in multifamily housing. More broadly, the project benefits the public by supporting the transition to affordable and reliable energy, particularly in rental multifamily housing where adoption has traditionally lagged.
This paper details a robust method to secure a multi-inverter grid tied system that interfaces photovoltaic (PV) and battery energy storage against potential cyber-attacks. The method can be applied to any third-party inverter systems without a need to modify their internal controls. A small random private excitation signal termed "watermark" is injected into the DC input voltage terminals (via a series transformer) connected to the PV/battery inverter system. An external robust cyber intrusion detector (CID) hardware consisting of a digital signal processor (DSP) generates the "watermark" and also receives the sensor signals that control the setpoints of the PV/battery grid tied system. The CID algorithm is shown to detect all possible cyber intrusions (such as false data injection(FDI)) on external sensor signals such as P and Q measured by a smart meter that control the overall system operation. The proposed CID computes online system ID and two variance tests in real time on each sensor signal and is able pinpoint intrusion location in a multi-inverter system. Results on a hardware in the loop (HIL) of a two-inverter grid connected system demonstrate effectiveness of the proposed CID system for FDI and unobservable FDI. Test results on a laboratory prototype will be discussed in the conference presentation.
This tutorial will be a deep dive into considerations for battery modeling and demonstrating how to model them in SAM, including battery chemistry, thermal modeling, degradation/lifetime, dispatch, interconnection limits and curtailment, and their associated impacts on project profits and battery lifetime. By the end of the tutorial attendees will know how to size and model both behind-the-meter and front-of-meter battery systems, including financial analysis and pairing with other PV models (including pvlib) via PySAM.
U.S. Forest Service (USFS) wildfire base camps use portable power for electrical needs, including yurts and trailers from which logistics staff work during the incident. These yurts and trailers are conventionally powered by portable diesel generators. Hybrid portable power systems consisting of a combination of solar photovoltaics (PV), battery energy storage systems (BESS), and/or backup diesel generators have been used in recent years and were piloted by the National Technology and Development Program (NTDP) on incidents in fall 2024 as part of NTDP's Portable Power Project. As part of that project, this work included the development of two Excel-based tools and two reports explaining the tools. The first tool, the Incident Energy Systems Model, is an Excel-based tool that models the power output of hybrid portable power systems powering yurts and/or trailers at fire camps over a typical day. The associated report (published separately) outlines a user guide for the model and walks through two scenarios. The two scenarios are 1) trailers powered by rooftop solar PV, batteries, and a back-up diesel generator, and 2) trailers powered by ground mount solar PV, batteries, and a back-up diesel generator. The second tool is a high-level cost-benefit analysis of the same two types of portable power systems, and is location independent.
Berkeley Lab’s “Utility-Scale Solar, 2024 Edition” presents analysis of empirical plant-level data from the U.S. fleet of ground-mounted photovoltaic (PV), PV+battery, and concentrating solar-thermal power (CSP) plants with capacities exceeding 5 MWAC (PV plants of 5 MWAC or less, including residential rooftop systems, are covered separately in Berkeley Lab’s companion annual report, Tracking the Sun). Key findings from this year’s report include: -18.5 GWAC of new utility-scale PV capacity came online in 2023, bringing cumulative installed capacity to more than 80.2 GWAC across 47 states. Installed costs continued to fall in 2023. Relative to 2022, capacity-weighted averages decreased by 8% to -$\$1.43$/WAC (or $\$1.08$/WDC). Costs, based on a 7.1 GWAC sample of 76 plants completed in 2023, have fallen by 75% (averaging 10% annually) since 2010. Plant-level capacity factors vary widely, from 6% to 36% (on an AC basis), with a sample median of 24%. -Levelized cost of energy (LCOE) of new 2023 projects increased slightly to $\$46$/MWh prior to the application of tax credits but continued to fall to $\$31$/MWh when accounting for federal incentives. PPA prices have largely followed the decline in solar’s LCOE over time, but newly signed longer-term PPA prices have increased since 2021, to an average of $\$35$/MWh (levelized, in 2023 dollars). -Solar’s average energy and capacity value (i.e., ability to offset costs of other power generation sources) across the U.S. was $\$45$/MWh in 2023. Solar’s average market value was lowest in CAISO ($\$27$/MWh), the market with the greatest solar generation share, and highest in ERCOT ($\$67$/MWh). -Newer solar projects had greater market value in 2023 than their generation costs, yielding $\$1.1$ billion in benefits. Projects built in 2022 delivered on average $\$15$/MWh more market value than their costs in 2023. -Solar’s combined value from wholesale electricity markets, public health and climate damage reduction were greater than generation costs and incentives, yielding $\$13.7$ billion in net benefits in 2023. We estimate U.S. health benefits of $\$24$/MWh and reduced global climate damages of $\$101$/MWh. -Adding battery storage is one way to increase the value of solar. Deployment of 52 new PV+battery hybrid plants set a record with 5.3 GW installed in 2023. Our public data file tracks metadata and PPA prices from more than 100 PV+battery hybrid projects that are already online or that have secured offtake arrangements. -Looking ahead, a massive pipeline of at least 1,085 GW of solar capacity dominates the nation’s interconnection queues at the end of 2023. Nearly 571 GW, or 53%, of that total was paired with a battery – in CAISO it was a staggering 98%. Historically only 10% of the requested solar capacity is built. -For more information, and to explore related interactive data visualizations, go to utilityscalesolar.lbl.gov.
We report ambitious targets for carbon emissions reductions are highlighting new challenges for electrification strategies, leading to an increased focus on building load flexibility and energy management to complement the variability inherent in renewable energy generation. Over the next decade millions of existing homes could undergo electrification retrofits, and there is an urgent need to understand the potential impacts of electrifying major residential loads such as water and space heating on community load characteristics, resident energy bills, and the utility's distribution system. Behind-the-meter distributed energy resources (DERs), including efficiency measures, photovoltaics (PV), battery storage, managed electric vehicle (EV) charging, and controls such as home energy management systems (HEMS), can significantly alter a neighborhood's load profile and provide benefits to both the residents and the grid. We present a novel approach to characterizing the impact of a hypothetical neighborhood-scale residential retrofit program on individual homes' energy use profiles, associated utility bills, and the local distribution system. We modeled a mixed-fuel community of 30 single-family homes in Denver, Colorado, and compared the effects of retrofit scenarios ranging from conventional energy-efficiency upgrades to full electrification with and without more advanced DER technologies. We analyzed which packages of DERs most reliably enable demand flexibility in response to a time-of-use (TOU) rate for this and similar neighborhoods. Our buildings-to-grid co-simulation framework includes a generic secondary distribution feeder model to capture voltage profiles, transformer loading, and other grid impacts in each case. We also calculated the carbon emissions associated with energy use in the community. The methodology developed here can be broadly applied to community-scale beneficial electrification studies in other regions, climates, utility infrastructures, and building typologies to make specific, targeted recommendations based on quantified projections of energy demand in any given community. Our findings indicate that residential electrification can be achieved without negatively impacting the monthly utility bill, and that a combination of conventional energy-efficiency measures, PV, battery, controls, and managed EV charging to maximize a community's demand flexibility is a promising strategy. Adding DERs (especially PV) as part of efficient electrification produces much bigger savings than efficient electrification without DERs. A key barrier is that upgrades require upfront costs, and modest utility bill savings result in long payback periods.
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Berkeley Lab’s “Utility-Scale Solar, 2023 Edition” presents analysis of empirical plant-level data from the U.S. fleet of ground-mounted photovoltaic (PV), PV+battery, and concentrating solar-thermal power (CSP) plants with capacities exceeding 5 MWAC (PV plants of 5 MWAC or less, including residential rooftop systems, are covered separately in Berkeley Lab’s companion annual report, Tracking the Sun). Highlights of this year’s update include: -10.4 GWAC of new utility-scale PV capacity came online in 2022, bringing cumulative installed capacity to more than 61.7 GWAC across 46 states. -94% of all new utility-scale PV capacity added in 2022 uses single-axis tracking. -Median installed project costs declined to $\$1.32$/WAC (or $\$1.07$/WDC) in 2022. -Plant-level capacity factors vary widely, from 9% to 35% (on an AC basis), with a sample median of 24%. The report explores drivers of this variation. -Utility-scale PV’s LCOE fell to $\$39$/MWh in 2022 ($\$29$/MWh if factoring in the federal investment tax credit, or ITC). -PPA prices have largely followed the decline in solar’s LCOE over time, but have recently stagnated and even moved slightly higher. Prices from a sample of recent contracts average around $\$20-30$/MWh (levelized) in the West and $\$30-40$/MWh elsewhere in the continental US. -In 2022, solar’s average market value (defined in the report to include only energy and capacity value) rose by 40% to $\$71$/MWh and exceeded average wholesale prices in 4 of the 7 ISOs/RTOs and 11 of 18 other balancing authorities analyzed. -Adding battery storage is one way to increase the value of solar. Our public data file tracks metadata and PPA prices from ~100 PV+battery hybrid projects that are already online or that have secured offtake arrangements. -the end of 2022, there were at least 947 GW of utility-scale solar power capacity within the interconnection queues across the nation, 456 GW of which include batteries. For more information, and to explore related interactive data visualizations, go to utilityscalesolar.lbl.gov.
Although utility-scale solar photovoltaic (PV) power plants are becoming a cost-effective energy resource, there is belief within the energy industry that the increasing penetrations of PV technologies could potentially impact grid reliability. This is due to the variability across timescales, the forecast uncertainty of the solar energy resource, and the impacts on both distribution and transmission systems. This can cause utilities to severely limit PV installations or to assign PV integration costs when considering a least-cost portfolio of resources. As California and other regions in the United States are marching toward fulfilling - and probably exceeding - their renewables portfolio standards goals, grid operators are beginning to face operational challenges that could have implications for existing renewable and nonrenewable generators and that will shape opportunities for future projects. In this work, we focused on developing controls and conducting demonstrations for AC-coupled PV-battery energy storage systems (BESS) in which PV and BESS are collocated and share a point of common coupling (PCC).