A Homeowner’s Guide to Small-Scale Distributed Energy Storage Systems
The energy storage industry has seen some of its best growth ever in terms of installed capacity during the COVID-19 pandemic. This is surprising when one considers that residential storage is often sold as an add-on to rooftop solar projects, an area which has seen its growth slowed by the uncertain economic conditions created by the pandemic. Home storage projects are often costly and have long payback periods, but this trend shows the value consumers place on their home energy resiliency in the face of hurricanes, fires, and other events that cause grid outages.
DER and DESS
Distributed energy resources (DERs) consist of a variety of small-scale grid connected electricity generation and storage devices. DERs are important because they help mitigate environmental impact by producing sustainable power and connect to smart grid interfaces in homes and offices to create greater energy efficiency that further decreases carbon footprints. Compare these with typical centralized generation facilities like a coal or hydro power plant, which often must transmit electricity over larger distances, and it is easy to see why DER popularity and usage is growing: DERs can serve electricity locally and efficiently, with fewer transmission losses. Due to the nature of their small scale, DERs require a fleet of generation and storage devices spread out within communities in order to provide the same amount of power that a centralized plant would, but allow greater control for consumers over where that power comes from . Distributed energy storage systems (DESS) serve the storage needs of DERs, and are the focus of this article.
Solutions
DESS come in several different formats that vary in complexity, price, and the benefits they offer to customers. Tesla’s Powerwall is a high-profile example of an “all inclusive” home storage system. A fully installed Powerwall can cost more than $10,000 (this can be lowered with tax incentives and rebates), but provides a system that can completely power your home during certain times of the day. The Powerwall charges during the day from on-site solar panels that produce more energy than the home requires, and holds that charge until night when energy needs rise and there is no generation to meet the demand. If there is no on-site solar, the Powerwall charges when electricity costs are cheaper to provide savings to the customer. The Powerwall is probably not the best choice for a consumer looking to purchase small scale storage in order to save money in the near term; the benefits vary with state energy costs and incentives, and the initial investment is high. If the primary goal is to have a home that is as sustainably powered as possible, however, the Powerwall is an excellent all-encompassing option.
Companies like Hygge Power are focused on the type of customer that wants more resiliency and carbon emissions reductions for their home, but does not want to spend thousands of dollars to get there. Hygge makes a device called the OPO Hub, which is a plug-and-play small scale battery that only needs to be plugged in and connected to WiFi to be up and running. The OPO Hub provides backup storage to the different devices plugged into it, while also managing when the OPO Hub charges and discharges to optimize usage based on different factors, such as electric rates or carbon emissions. The OPO Hub, in conjunction with Hygge’s downloadable CO-Z app, helps customers view their whole home’s real time energy usage and opt into utility programs demand response programs. The Hub uses the data it creates to find cost-saving solutions for its users and provides alerts to help the customer realize those savings.
For an option aimed at heating systems, Meridiem has developed advanced thermal technology for households and commercial buildings that is cost effective and completely emission free. Meridiem combines an all-electric hydronic heater with thermal storage to enable customers to store energy as hot water when electricity rates are low and then convert it for use when prices rise. Their installation costs are on par with fossil fuel alternatives and less than many cold climate heat pump systems. Meridiem’s technology is appealing to customers who want to reduce their home’s heating system’s reliance on fossil fuels, but also value an investment that can recoup its costs. In the long term, the lower variable costs make Meridiem technology far cheaper than fossil fuel systems and retrofit solutions that use propane or heating oil. Meridiem’s system can either charge from the electricity grid or directly from onsite solar panels that can be hooked up to the heating chamber to provide all of the household’s electricity needs.
Beyond the above examples, there are new energy innovations constantly emerging for homeowners who want to be part of the climate solution. For those looking into distributed small-scale storage it is important to consider their main goal: is their objective to protect against outages for important home devices, reduce reliance on fossil fuels, or improve energy costs with a comprehensive system that tracks and reduces energy usage for the entire house? No matter the motive, there is surely a DESS to meet these needs, and as competition within this market increases, future consumers can look forward to electrifying their homes at increasingly affordable prices.
