battery technology: grid-tied energy storage design

Miles Hovis, Sr. Project Development Manager – Energy Storage

[email protected]

Battery Technology:

Grid-tied Energy Storage Design, Financing and Deployment

October 14, 2015

SolarCity Confidential Slide 2 2

� SolarCity Overview

� 21st Century Grid Challenges

� DemandLogic: Creating End-user Economic Value through Energy Storage

� Customer Economics Examples

Agenda.


SolarCity is the #1 full-service residential and commercial solar provider in America.

2,000+ Commercial projects

1,400+ MW installed

400+ School installations

26 States with installations

9 Years of experience

12,000+ Employees

$8 Billion+ Of solar projects

The national leader in solar, SolarCity has:

75+ Operation centers

Source: National leader according to the Q1 2015 GTM Research U.S. PV Leaderboard.

“States currently served” data as of 8/11/15; “Facilities,” “Employees” and “MW Deployed” data as of 6/30/15; “School installations” data as of 9/24/14;

“Commercial projects” data as of 4/22/15; “Funds raised to finance solar projects” data as of 5/28/15.


Our solar energy systems offer predictable energy rates lower than those from utilities for 20+ years.

Immediately match or reduce your energy costs.

SolarCity customers can see savings from day one with no

upfront costs or capital expenditure, allowing them to invest

these savings into additional high-impact projects.

Predict the cost of energy for 20+ years.

Energy market rates are volatile and frequently rise. SolarCity

agreements guarantee performance and offer predictable rates

for 20 years, serving as a hedge against volatile market rates.

Pricing volatility in power markets.PJM average prices in 2014

$ p

er

MW

h

-

100.00

200.00

300.00

400.00

500.00

600.00

Save money on electricity every month.


Zero financial dependency.

� Through our investment partners, we’re able to offer

solar energy with zero capital expenditures by the

customer.

� All financing is done in-house; no third-party

management or added costs.

� Our existing tax equity funds allow us to finance

projects immediately.

� Over $8 billion raised by trusted investors such as

Google, Goldman Sachs, Citi, Honda and Rabobank.

Select investment partners.


Our industry-leading technology improves installation, operational efficiency and drives savings.

In addition to developing and

manufacturing high-efficiency

solar modules, SolarCity vets and

selects best in class technology

that improves performance and

maximizes energy production,

leading to lower electricity costs.

SolarCity has developed

industry-leading mounting

technology that enables

faster and safer installs,

improves power density, and

reduces the impact on your

organization.

DemandLogic™ works in

concert with your solar

power system to intelligently

reduce your peak demand,

and dramatically increase

energy savings.

SolarCity’s proprietary

management system,

PowerGuide, monitors all

solar systems in real-time and

intelligently notifies response

teams to address any

performance issues.

Mounting technology Storage Solar modules Monitoring software


� SolarCity has worked with Tesla for 4+ years on batteries

� Developed suite of battery products and internal software

� Uses the same Li-ion “cell” technology as the Model S

� Fully-integrated grid scale and distributed storage

Storage technology leadership.

Powerpack

• 250kW / 500 kWh blocks

• Fully scalable

Powerwall

• 7kW and 10 kW units


� Peak demand is about 80% higher than average demand, and rising steadily

in Texas. (EIA, Peak-to-average electricity demand ratio rising in New England and many other US regions, Feb 18, 2014)

� Increased peak load compared to average load means more assets are

needed, but used less, translating to increasing costs.

Peak loads are increasing compared to average loads.


If the top 100 hours of load were flattened…

What does it cost to serve peak load?

$1.2 billion $1.2 billion $1.2 billion $1.2 billion ---- $1.7 $1.7 $1.7 $1.7 billion billion billion billion

savings savings savings savings per year per year per year per year in in in in long long long long

term avoided capacity term avoided capacity term avoided capacity term avoided capacity

and energy and energy and energy and energy in NYin NYin NYin NY


21st century grid.


How can you shift peak loads?

Base Load

Load Shift

PV Generation

Battery Charge

Storage and Load Shifting = FlexibleStorage and Load Shifting = FlexibleStorage and Load Shifting = FlexibleStorage and Load Shifting = Flexible AssetAssetAssetAsset


Example distributed storage programs.

� California energy California energy California energy California energy sssstorage mandate.torage mandate.torage mandate.torage mandate.

‒ 1,325 MW of energy storage to be procured by PG&E, SCE and SDG&E by 2020

‒ Energy storage procurement equal to 1% of peak load by 2020 for community choice

aggregators and electric service providers

� California selfCalifornia selfCalifornia selfCalifornia self----generation incentive program.generation incentive program.generation incentive program.generation incentive program.

‒ Rebate of $1.46/W to customer-sited energy storage projects, with 2-hour minimum

runtime requirement

‒ Projects count toward utility procurement targets

‒ 144 MW of storage projects reserved or in progress

� Oregon energy storage mandateOregon energy storage mandateOregon energy storage mandateOregon energy storage mandate

‒ 5 MWh of energy storage to be procured by electric utilities by 2020

� Vermont energy Vermont energy Vermont energy Vermont energy ttttransformation ransformation ransformation ransformation rrrrequirementequirementequirementequirement

‒ Energy Transformation Projects provide energy-related goods or services, not consisting of

the generation of electricity, that result in a net reduction in fossil fuel consumption by

customers, including storage of renewable energy.

‒ Requires 2% of each retail provider’s annual retail electric sales to be met through energy

transformation projects beginning in 2017 and reaching 12% in 2032


Energy capacity is key for load shifting.

� Power Capacity (kW): Power Capacity (kW): Power Capacity (kW): Power Capacity (kW): the maximum amount of power a

resource can provide at any one time

� Energy Capacity (kWh): Energy Capacity (kWh): Energy Capacity (kWh): Energy Capacity (kWh): the maximum amount of energy a

resource can provide before it must be recharged

� Runtime (hours): Runtime (hours): Runtime (hours): Runtime (hours): the maximum amount of time a resource can

discharge at its full power capacity (Energy Capacity / Power

Capacity)


DemandLogic system – 250 kW / 500 kWh.


DemandLogic system – 250 kW / 1,000 kWh.


DemandLogic configuration.

Utility

Billing

Meter

Battery

System

Site

Loads

Photovoltaic

System

Control

System

Submeter


DemandLogic deployment example.


� Battery system installed in conjunction with new solar PV system

� SolarCity finances the combined system at no upfront cost to customer

� Customer locks in rate on both solar energy ($ / kWh) and demand reduction ($ / kW)

DemandLogic: PV + battery solution.


Industrial client – original load profile.


Industrial Client – load profile with DemandLogic.


Industrial client – economic overview.


� Grid-level energy storage is commercially available and already in deployment

� Energy markets are moving to reflect both higher overall costs and greater price differences between average and peak load

� Energy storage applications firm up intermittent generators and create flexibility for load shifting and/or revenue capture

� Service contracts relieve operational burden and hedge against long-term price increases without capital exposure

� Limited timeframe (2016) to buy into energy storage capacity at a lower cost with the upside of different future applications

Conclusions.


Thank you.

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[email protected]

battery technology: grid-tied energy storage design

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