More proof energy storage is turning the corner (commercial buildings are on board)
Quick Take: Energy management consultancy Luthin Associates' latest newsletter argues that power storage is turning the corner. Scan below for the high points of their reasoning, or download the newsletter (PDF).
I wanted utilities to see this partly because of a recent conversation with an energy consultant whose opinion I respect. He says "all commercial and industrial customers want to get off the grid." I don't think it is quite that simple, but I do think that the cost of energy storage is the gating factor. As you will read, it's not just that storage costs are dropping. It's that storage incentives are climbing as well. â€“ Jesse Berst
The tipping point for energy storage appears to be rapidly approaching. Just as the cost of large batteries is dropping, financial incentives are rising. New York is offering $1,500 per stored kilowatt of capacity (plus an additional $800 if it is enabled for demand response). California is offering $1,800 (even more if the equipment is made in California).
Peak demand charges are an increasing percentage of electric bills for commercial customers. They can buy electricity when it's cheap (or generated via rooftop solar) and store it for use when prices are high.