Home energy storage in the United States, most of it paired with rooftop solar, is on track to grow from almost nothing to more than 600 megawatts per year by 2021, as small solar installers assert themselves against larger, national competitors and time-of-use pricing becomes more common, Greentech Media reports.
While combining the two technologies “isn’t as simple as it seems,” that evolution “is a challenge everyone in the industry can see coming, and everyone wants a piece of the action.”
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Greentech uses the term “long-tail installers” to define the large number of smaller solar companies that have been entering the market behind a smaller group of central providers. One reason those installers can survive in residential solar, the industry news outlet says, is that “they’re installing fairly ‘dumb’ components. Solar panels aren’t exactly smart devices, and while inverters and energy meters are more complex in their interaction with the grid, they’re reporting data about energy production more than dynamically controlling it.”
But energy storage is an entirely different story. “Whoever controls the energy storage system will need to be aware of time-of-use rates, demand charges, and consumer preferences,” writes correspondent Travis Hoium. “A battery paired with solar in the future will require an incredibly complex algorithm to operate efficiently, something that long-tail installers won’t be equipped to develop themselves. That means there’s a natural hole that energy storage companies will try to fill.”
Greentech lists several companies that have an eye on the solar+storage market, “from solar manufacturers to stand-alone energy storage companies, and each one sees their role differently.” Each of them emphasizes a particular part of the integrated system, and has a specific business model in mind for building market share.
But ultimately, “long-tail installers are going to have to lean on someone to build the algorithms to control energy storage in the future—and not all energy storage offerings will be created equal.”
