A Three-step Strategy for Solar Storage
Did you know that the solar power capacity of the world today is 53 times what it was nine years ago? True; yet there is a huge gap between the demand and supply of solar power, which solar developers are struggling to fulfill. If they have to address this problem they will have to adopt a multi-dimensional approach that involves analysis and viability assessment of solar storage projects.
As solar power developers here are three steps you can follow while planning and integrating solar storage solutions:
Understanding the market
Market research is the first step you need to take to find out how much revenue your solar storage project can generate. You have to put in efforts to understand the various programs that can help you hone in on the ideal target markets.
- Find out what incentives are available, both from the central government as well as the State government.
- Understand utility territories. Get details about rate structures, export limitations, energy shifting, demand charges, demand response, backup power, time-of-use rates and various other utility incentive participation options. Participate in the policy processes of public utilities commission and try and engage with the utility directly to get this information.
- See if any free technical support is available from your state
Matching Project Design With Market Requirements
While designing your solar storage solution you will have to consider various factors such as the size and shape of the customer load, the size of the battery, the system’s performance, and the various technology setups pertaining to photovoltaics. Not only will you have to think about serving the customer load perfectly, you will also have to focus on reducing the demand charges and offering best grid support so as to qualify for the demand response initiatives. Here are a few things you can do:
- Participate in multiple programs to create multiple demands on batteries
- Built an optimization and decide on the most valuable use-case just in case there is a trade-off
- Consider placing more emphasis on one program over the others
- Take a hybrid optimization approach
See how it all works together and find out how you can get the maximum value.
Building Financial Performance Into Your Process
Solar storage being a new market it is very important that you prove the value streams of your project if you want to get the finance that you require to complete your project. This is only possible through financial modeling.
A good financial model will connect the value of your project to its cost and help the prospective investor/lender to arrive at a cost-benefit analysis. It will give them a fair idea about the payback, internal rate of return, or what is called ROI or return on investment.
- Establish the connection between the different levels of photovoltaics and storage with the costs and incentive. Make sure the investor/lender is able to relate the resulting value with the investment.
- Keeping in mind the tax credit constraints and various other benefit criteria, identify the design which provides the maximum value.
Following these three steps while planning your solar storage project can help you establish a roadmap and gain the confidence that you may need to develop a system that generates solar power in an affordable yet reliable way. Moreover these steps can also take you towards building a reputation in your new target markets where the customers are ever-hungry for solar storage solutions.
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