Guest Blog, by Jaden Yang of University of California, Berkeley
Distributed generation such as rooftop solar panels creates an economic democracy where every person can generate electricity from their own solar photovoltaic cells. Another benefit is lower transmission losses since the solar energy comes directly from their rooftop. However, one of the biggest challenges of renewable energy is energy intermittency. Solar panels on a rooftop can only generate electricity during daylight hours, and if a solar panel generates more electricity than you can use in the moment or does not generate enough, electricity must be exported or drawn from the grid to compensate. For this reason, solar panels do not always generate electricity when the domestic demand is greatest.
Renewable energy has always faced challenges of consistency of supply and system integration. Some flexibility options to complement renewable energy are flexible peak power plants, grid integration, demand side management and battery storage. In California, a Net Metering policy that credits solar energy system owners for the electricity they add to the grid has given considerable benefits to solar panel owners. Unlike California, the UK has not implemented this policy widely, making battery storage systems a more attractive proposal to encourage the uptake of solar. Battery storage is not a new technology. Up until now, due to its expense, it hasn’t been widely used in the UK. It would allow solar PV owners to generate, convert and save excess electricity for use at a later time, enabling users to make maximum use of the electricity they have generated themselves, as well as providing a solution to intermittency and production/demand mismatch.
In order to make battery storage affordable and feasible, government subsidies on green technologies can enhance both business and environmental performance. First, clean technology businesses can increase their research budget with government subsidies to improve and reduce the cost of battery storage. Secondly, if battery storage becomes popular, less people use electricity from the grid. Thus, once solar panels and battery storage systems become prevalent in a community, people have less dependence on traditional fossil fuel power generation, which will have the effect of reducing greenhouse gas emissions. Therefore, we believe there is enormous potential for battery storage to enhance domestic renewable energy production, which itself encourages the development of better batteries in a virtuous circle.