Riding the wind and waves in the energy storage industry-combination of solar energy storage and electric vehicle technology

Solar energy is booming around the world. As costs drop and technology approaches grid parity, historically government-based incentive models and subsidies are changing—especially the distributed power generation (DG) rooftop market. But the new technologies and capabilities of other distributed energy resources (DERs), such as battery energy storage systems, electric vehicles (ev), and other smart energy technologies, are entering the future of net zero energy—providing opportunities to go beyond the past power structure

Solar energy has become a specific element of the world's energy system. However, due to the continuous development of technology, lower costs and new compensation policy mechanisms that support energy development, investment trends are constantly changing. An example of this dominant trend is that the old and stable compensation system has been phased out and replaced by more dynamic mechanisms that not only focus on the output of power generation, but also the management and operation of energy technology.

For example, the United Kingdom and Germany are two of the four largest solar photovoltaic and electric vehicle markets in Europe. The UK terminated all residential solar PV subsidies on March 31, 2019, replacing the old feed-in tariff (FiT) policy with the so-called Smart Export Guarantee (SEG) program.

The new market-led plan launched in January 2020 requires all power suppliers with at least 150,000 retail power customers to provide at least one SEG price for new residential photovoltaic systems. The government does not specify the tax rate, type, or duration, but the purchase of export tariffs must provide a rate higher than zero per kilowatt-hour, thereby providing household income surplus solar energy-unlike the past health system, generators are paid for all generated electricity. In the UK, the rooftop photovoltaic installed capacity of projects below 10 kilowatts is about 3 gigawatts.

In Germany, up to 10 kilowatts of 581 MW solar power generation projects were added in 2019, and the German market research agency recently conducted a survey of more than 1,000 homeowners and found that 20% of them are actively deciding to invest in solar photovoltaic power generation. Participants in the survey said that they have the incentive to invest in photovoltaic power generation to reduce their electricity costs and at the same time contribute to environmental protection, but they also benefit from the adaptation guaranteed by the state.

Germany recently set the upper limit of subsidies to 52 GW, and EuPD Research suggests that this upper limit can be reached by July 2020. Once this limit is reached, new photovoltaic systems below 750 kilowatts will not be eligible for subsidies. In May 2020, the German government abolished the photovoltaic ceiling, and the domestic residential and commercial photovoltaic industries are waiting for the implementation of new measures.

Other countries, such as Italy and Greece, have replaced the FiT program with a retail net measurement (NEM) mechanism many years ago, which grants credit to generators that supply electricity to the grid. Other countries, such as Portugal, have chosen a self-consumption plan similar to the NEM policy, but usually do not allow the transfer of electricity credits. Inappropriate mechanisms often reward residential solar generators based on market indicators, such as the wholesale price and retail price of electricity in a certain electricity market.

Frank Gordon, policy director of the British Renewable Energy Association (REA), said: “Electric vehicles, residential solar and energy storage will go hand in hand.” As countries gradually abandon fossil fuels and switch to net-zero power systems,the energy structure that we are already familiar with will have to change. We are shifting from a centralized form around a small number of power stations to a decentralized form, with cities, towns and houses as their own micro power stations. REA’s Gordon said: “Electric vehicles, home solar and energy storage provide an efficient and economical way to implement this type of energy system.”

A recent report by the Institute of Energy Economics and Financial Analysis (IEEFA) pointed out that “the strong mutual benefit makes these technologies more destructive when combined than when used alone.” The IEEFA report mainly focuses on the United Kingdom and Germany, arguing that batteries and electric vehicles can promote the economic benefits of rooftop solar power generation, allowing households to use the solar energy they generate more, thereby increasing their electricity bill savings. "As the cost of rooftop solar, batteries and electric vehicles decline, these savings will increase over time," IEEFA said.

In Australia, households have also seized the opportunity to use solar photovoltaics to reduce relatively high electricity bills. According to another report of the motion, as of the end of 2018, the installed capacity of distributed rooftop photovoltaic power generation systems under 10 kilowatts in China was approximately 11 gigawatts. The Australian government's support for solar energy includes solar installations provided by retailers for energy exported to the grid, the price of which varies between domestic and domestic regions; and capital expenditure rebates, which provide households with part of the initial cost of solar photovoltaic systems. The IEFFA report predicts that as early as 2024, the cost of Australian households investing in solar energy, energy storage and electric vehicles will be lower than the cost of investing in solar systems alone.

Whether it is a single system or a combination of photovoltaic, energy storage and electric vehicle systems, the calculation of its payback period depends on many factors. The state's support for these two technologies is one of the factors, and the structure of the electricity market and grid charges are undoubtedly the key factors, but there are also some setbacks.

The motion calls on regulators to reform grid services and markets, so that solar energy, energy storage and electric vehicle technologies and traditional power generation technologies are in a level playing field. Smarter domestic electricity prices that reward off-peak electricity consumption, and smarter electric vehicle chargers that support grid stability, will further drive demand for these three technologies. But the question now is whether retailers will introduce these tariffs and services separately, or the government needs to promote them.

In addition to regulatory issues, another emerging issue is whether the choice of hardware will play an increasing role in the new era of declining public subsidies. Ray Cheng, Growatt's overseas marketing director, said that the choice of inverter is crucial. Cheng said: "Our inverters and related GroHome smart management system have integrated solar power generation systems with energy storage equipment, smart electric car chargers, water heaters and IoT devices, thereby increasing the home’s photovoltaic self-consumption. Through smart energy management strategies to reduce the overall energy consumption of the home, it is now possible to achieve 100% green energy to power your home."

According to a survey by the Micro Lithium Battery Group, the industry agrees that with the reduction of costs and the reduction of the country’s incentives for solar photovoltaic power generation, energy digitization is paving the way for the future. With the emergence of community micro-grids and virtual power plants (vpp)-aggregated assets such as solar photovoltaics, energy storage, and electric vehicles, a distributed power plant based on cloud computing-the general trend of combining new technologies 5g, Internet of Things, artificial intelligence will be the medium of energy conversion in the future.