Multiple factors-including high demand charges, reliance on solar, changes to energy tariffs and lower storage costs-are driving the trend, according to industry experts.
“If my storage system allows me to reduce my consumption during the window when the demand charges are high, that can be very valuable,” noted Gimon, who predicts that the growth in BTM energy storage will be disruptive to the industry.
Increased reliance on solar power also is pushing interest in energy storage.
“Behind-the-meter battery storage allows users to move the value of the solar energy from a low-cost period to a high cost-period to preserve the economics. So, we’re seeing a lot of growth in demand for energy storage coupled with solar,” said Carl Mansfield, VP of solutions at NantEnergy.
Falling storage costs in the last three years also make on-site storage more economical, notes the Institute for Local Self Reliance.
Cost reductions, combined with increased competition and manufacturing advances signal big opportunities for energy storage.
“While we are still assessing the potential for energy storage to open a new frontier for renewable power generation, energy storage should become a significant feature of the energy landscape in most geographies and customer segments. Seizing will require innovation and investment across the storage value chain, particularly in the next one to three years, when early-mover advantages will be there for the taking.”