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Backup power or bill savings? How electricity tariffs impact residential solar-plus-storage usage in the United States

Adoption of paired solar-plus-storage systems has accelerated in recent years, driven by both the demand for backup power and a desire to manage utility bills. Tradeoffs between those two uses can arise through the reserve setting on the battery storage system, which serves to maintain a minimum state of charge in case of a power interruption. Our paper applies an economic framework to evaluate this tradeoff in terms of changes in bill savings and customer reliability value across reserve levels, considering how those tradeoffs depend on the underlying electricity rate structure and levels. The analysis is based on a representative set of load profiles, solar profiles, tariff designs, and stochastic power interruption events across ten different regions in the United States. We find that the opportunity cost of holding storage capacity in reserve, in terms of foregone bill reductions, outweighs any gains in reliability value from mitigated power interruptions in the majority of customer situations. Higher storage reserve levels increase total customer value only in specific circumstances, such as for customers with inferior reliability (10x average interruptions), with a very high value of lost load ($50/kWh), and with tariff or interconnection rules that disallow grid charging. However, even this result is dampened when considering tariff designs with higher price differentials that increase the opportunity cost of holding storage in reserve (e.g. import/export or time-of-use rates). Allowing grid charging in tariffs essentially eliminates the necessity to hold any storage in reserve in all sensitivity cases explored.

Electric resilience

Enhanced Simulation Tools for Scheduling Solar Plus Storage Power Plants

This is the final technical report for the Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) under the Solar Energy Technology's Office Balance of Systems program, Award Number 38429. This report summarizes the key outputs and findings of the project, which was focused on long-duration energy storage (LDES) and solar. In particular, one of the most significant challenges of maximizing the value of variable solar energy is the timing of charging and discharging stored energy from LDES devices. Power systems often fail to capture the benefits of LDES and can undervalue the role of storage in providing energy arbitrage, reliability support, and resiliency. This project examined those challenges and proposed alternative methodologies that better capture the value that LDES can provide.

14 SOLAR ENERGY

Day-Ahead Probabilistic Forecasting of Net-Load and Demand Response Potentials with High Penetration of Behind-the-Meter Solar-plus-Storage

The goal of this project is to develop advanced methods for day-ahead net-load forecasting, by leveraging the state-of-the-art machine learning techniques. The developed models produce both point and probabilistic forecasts for a variety of use cases, and are versatile to work with different types of data sets. The innovation lies in the novel design of the architectures, leveraging the most recent advances in machine learning that have not been explored in power systems, accompanied by techniques in the broader artificial intelligence fields such as fuzzy systems. This project has achieved the following accomplishments: (1) preprocessing of over 10 data sets covering varying geographical regions, time horizons, and system levels, which form a robust foundation for training and evaluating forecasting models across a wide range of realistic grid scenarios; (2) development of an interactive web app that enables exploratory analysis of load and generation data, and supports better understanding of data trends, anomalies, and correlations, facilitating model development and stakeholder engagement; (3) implementation of over 10 benchmark models for point and probabilistic forecasting, which include a mix of conventional machine learning methods and state-of-the-art deep learning approaches, providing a comprehensive baseline for performance comparison and validation of the proposed models; (4) development of a fuzzy system based gradient boosting model, tailored for small (less than 3 years) data sets, which achieves a mean absolute percentage error (MAPE) of 4% for point forecasting and a 20% improvement in average pinball loss for probabilistic forecasting; (5) development of a Transformer (a state-of-the-art deep learning architecture) based neural network model, tailored for large (3 years or more) data sets, which achieves a MAPE of 2% for point forecasting and a 20% improvement in average pinball loss for probabilistic forecasting; (6) development of a methodology for quantifying DR potential, and extensions of the previous models for multi-target forecasting of net load and DR potential, which achieve a MAPE of 10% for DR potential.

24 POWER TRANSMISSION AND DISTRIBUTION

U.S. Department of Energy Solar District Cup Collegiate Design Competition

The Solar District Cup is a multidisciplinary collegiate competition that challenges student teams to design and model standalone solar and solar-plus-storage systems for multiple buildings on a local electrical distribution network, such as a college campus, across a development, or in a district. Students learn cross-cutting skills that prepare them to become part of the next generation of the distributed energy workforce. Student teams act as renewable energy developers proposing to solar and solar-plus-storage system requests. Students, faculty, and prospective employers can benefit from knowing about this program and what students learn--either immediately as participants, mentors, or judges, or as potential employers of Solar District Cup alumni. RE+ is also one of our competition partners.

29 ENERGY PLANNING, POLICY, AND ECONOMY

The resilience value of residential solar + storage systems in the continental U.S.

Abstract Behind the meter rooftop solar plus storage (PVESS) has the potential to benefit the hosting customers by providing affordability, environmental, and reliability and resilience value. Whereas the bill reduction and environmental benefits of PVESS are well studied, its monetary resilience benefits are less understood. The increasing trend of power interruptions driven by extreme weather events heightens the need to understand these benefits. This study leverages various publicly available datasets to perform a cost benefit analysis of adding to determine the resilience value of PVESS for a typical single family home in each county in the continental U.S. We find that PVESS is very effective to technically mitigate interruptions across the country. However, the monetary benefits in the base case only cover about 14% of battery costs, with no county exceeding 60%. This is somewhat expected, given that PVESS provide other monetary benefits that are not part of this analysis. Through sensitivities, we find that higher frequency of extreme weather events roughly triples the resilience value of PVESS and that higher values of lost load double the same metric. Our sensitivity analysis shows that the benefit cost ratio of PVESS for customers living in areas with higher-than-average frequency of long duration interruptions and value of lost load is already above one even without considering other value streams. We conclude with recommendations that regulators and utilities could implement to enable customers to calculate and capture the resilience value of PVESS more efficiently.

Baik, Sunhee

Consumer Benefits of Clean Energy: The resilience value of residential solar + storage systems in the continental U.S.

Meeting national and state decarbonization goals requires a transition to clean energy technologies. Energy efficiency, demand flexibility, renewable energy and storage can reduce consumers’ electricity bills, lower total electricity system costs, and provide health and resilience benefits. Berkeley Lab developed a series of briefs that explore these consumer benefits of a clean energy transition. Clean energy resources that are located behind the meter have the potential to benefit the hosting customers by providing affordability, environmental, and reliability and resilience value. Solar plus storage systems (PVESS) are clean energy resources that can supply backup power without requiring fuel resupply or increasing local emissions. This report examines the regional value of PVESS for resilience by calculating a benefit-cost ratio (BCR) that considers the annual resiliency benefits of PVESS and the annualized cost of the investment. In addition, we estimate the expected technical mitigation potential of PVESS systems at the county-level to these expected events, and characterize the customer interruption costs by determining the value of lost load at the state level.

14 SOLAR ENERGY

Virginia Energy Resiliency Study

The Virginia Energy Resilience Study (VERS) was conducted under the U.S. Department of Energy’s Renewables Advancing Community Energy Resilience (RACER) program to strengthen the ability of communities in Virginia to anticipate, withstand, and recover from electric grid disruptions. While the project did not fund construction, it delivered a comprehensive, community-centered framework for assessing energy resilience and produced actionable, site-specific solar-plus-storage designs to support future implementation.

14 SOLAR ENERGY

Solar Thermal Energy Planner (STEP 1): A New Decision Support Tool for Solar Industrial Process Heat Applications

Solar thermal technologies are a promising technology to supply low-cost thermal energy to industrial processes, but there are often significant barriers to entry to industrial owners considering these technologies for their energy demands. To overcome this barrier and convey economic value to customers, NREL and Sandia National Laboratories developed Solar Thermal Energy Planner (STEP 1), a new web-based decision support tool for solar industrial process heat systems. At SolarPACES 2024, the STEP 1 tool was still under development; progress, methodologies, and a preliminary case study was presented. With the STEP 1 tool launch in May 2025, in this work, the initial version of the full public tool will be presented with demonstrations of its capabilities using a few case studies. First, the user's process heat needs such as location, process media (e.g., steam, air), process temperature, land availability, electricity and fuel costs, among other parameters. STEP 1 features a mapping interface that allows users to draw land and roof boundaries. The process media and temperature inform technology selection criteria modules that determine the appropriate solar thermal collection technologies, as well as congruent heat transfer media (e.g., hot water, oil, salt). Once the solar thermal technology selected, its nominal thermal production for the given site is characterized using NREL's System Advisor Model (SAM). Then, a modified version of NREL's REopt optimal sizing and dispatch optimization tool determines cost-optimal sizing. Within minutes, the user receives the results of the technoeconomics analysis, including the size and performance of the cost-optimal solar-plus-storage system. The cost of the system is compared to business-as-usual (e.g., an existing, standalone natural gas boiler). Users can download key results to store for sensitivity analyses. Examples of flat plate collector, parabolic trough, and molten salt tower applications with and without PV hybridization for different industrial facility types are presented in this work. The STEP 1 tool aims to reduce barriers to the adoption of solar heating solutions stemming from a lack of familiarity and technical background with solar system design options and costs among industry stakeholders.

14 SOLAR ENERGY

REopt Techno-Economic Analyses for Energy Resilience Projects in Bakersfield, California [Slides]

This slide deck presents the REOpt analysis results for three community resilience centers in Bakersfield, California: East Bakersfield, Wasco, and Lamont. The results describes techno-economic considerations and resilience performance of various solar PV and solar plus storage microgrids that the three sites could consider installing. The results also clearly describe assumptions and limitations associated with this analysis and is intended to support the Bakersfield community's organizing efforts around developing community resilience centers that uplift disadvantaged and marginalized community voices.

14 SOLAR ENERGY

Defining a Platform Approach and Market Participation: Data Driven Business Models for Solid State Transformer-Based Synthetic Inertia and Voltage Stability Controls (CRADA Final Report, Project 1, Mod 1)

The primary objective of this project is to determine the incremental value created with the medium voltage solid-state transformer (MV SST) technology to different stakeholders in view of the updated DER grid regulations. This includes studying the benefits of the MV SST technology in a range of use cases for EV and DER penetration including (1) “corridor charging” for EVs and (2) solar plus storage (FERC 2222). The potential customers of this technology include utilities for EV charging, DER installers who must meet utility interconnection requirements, balancing authorities, and DER aggregators. The traditional transformers on the grid could be a limiting factor for the EV-grid integration as the distribution transformers were not designed to handle the dynamic and fluctuating EV charging loads. Thus, the issues such as voltage fluctuations, increased losses and reduced efficiency [1] can negatively impact the grid operation. To address these challenges, transformers with flexibility and adaptability become imperative to meet the evolving energy demands. In this regard, the concept of Medium Voltage Solid-State Transformers.

14 SOLAR ENERGY

Planning for Seattle at the Convergence of Resilience and Energy

Grid reliability metrics obscure important temporal, spatial, and categorical considerations for increasing energy resilience. Systemwide or feeder-level outage metrics do not identify which kinds of services are affected by outages, where, and for how long. These outage metrics indicate the impacts of outages but cannot measure the consequences to customers that could result from those outages. The consequences of power outages for surrounding community members are caused by disruptions to electricity-dependent critical services, rather than to electricity itself. Power outages can decrease a community's access to healthcare, fuel, safe indoor temperatures, and provisions like food and water. This project developed critical service access, a new consequence-focused resilience metric that quantifies the relative access to critical services provided to households by distribution infrastructure during normal conditions and major disruptions. We use a spatially granular grid analysis that facilitates targeted resilience interventions; dividing feeders into isolatable sections and combining those sections with the critical service access metric allows us to identify where energy improvements like solar-plus-storage microgrids could create the most benefits for community members by protecting access to food, fuel, health, shelter, and public safety services. We identify locations in a South Seattle study area that could be high priorities for resilience investment and summarize their potential neighborhood-scale resilience benefits. This analysis was complemented by direct feedback from study area residents collect through a survey and focus groups. Results can help utilities understand how and where long power outages can create real consequences for customers, set strategic targets based on that understanding, and measure the potential benefits of energy resilience upgrades for more informed decisions.

14 SOLAR ENERGY

How to Model Batteries (with PV, Stand-Alone, or Hybrids) in SAM and PySAM

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.

25 ENERGY STORAGE

Form Follows Function (F3): A framework for community-based energy resilience planning in the Midwest

This is the final technical report for the Form Follows Function (F3) grant project led by the City of Duluth, MN. F3 was an innovative two-year initiative that created a replicable, human-centered energy resilience planning process specifically designed for smaller, cold-climate communities in the Midwest. F3 demonstrated both systems-level government planning and community-based research techniques to inform renewable investments and community preparedness strategies.

14 SOLAR ENERGY

SolarAPP+ Performance Review: Final Technical Report

The National Renewable Energy Laboratory (NREL) and its project partners have developed the novel Solar Automated Permit Processing plus (SolarAPP+) software platform that provides a flexible, web-based PV-permitting tool for residential systems that can be integrated with existing and complementary software platforms. The main objective of this research is to analyze the implementation of SolarAPP+. Analysis was conducted by identifying the benefits, tradeoffs, and overall performance of SolarAPP+, including achieving its goals of delivering automated, code compliant systems, influencing permitting cycle times, and improving application submittals and/or inspection performance. The NREL team published the results of this analysis in annual SolarAPP+ Performance Review technical reports.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Updating PV and Battery Bill Savings Calculations for Net Billing: New Best Practices for Input Data and Uncertainty

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.

14 SOLAR ENERGY