Part IV of Solar Builder’s excellent Countdown to 2020 series about California’s new home solar mandate included this statement: “Speakers at the California Solar Power Expo… expect homebuilders to skip solar-only systems to comply with the Title 24 mandate and go straight to solar + storage systems.” Is that expectation realistic or are those industry experts looking through rose-colored glasses?
The answer is an unwavering “maybe.” Remember how long it took consumers to believe that solar energy systems actually pay for themselves. Now we’re trying to convince builders that consumers are ready to believe that solar + storage is an even better value proposition than solar alone? That shift won’t happen overnight. People are innately skeptical when an offer sounds too good to be true. It also will require considerable education considering that most builders and consumers know very little about solar energy storage today.
Whether or not builders and their customers buy into solar + storage depends mainly on how well the solar industry conveys the benefits of energy storage systems. And, while it sounds callous to say, the truth is that the wildfires and power outages ravaging California are going to goose the adoption rate for solar storage.
The value equation for storage
Absent power outages, the primary selling point for solar energy storage in markets (such as California) where you have tiered electricity rate structures is its ability to offset utility rates during peak demand times, when power from the grid is priced at a premium. That is still a compelling benefit.
However, the greater value of battery storage in California today is its ability to provide some electricity during a power outage. With Pacific Gas & Electric on the proverbial hot seat for having caused the 2018 Camp Fire—the deadliest wildfire in the state’s history—the company has taken the proactive step of cutting power during high-risk, red-flag warning times to minimize the risk of contributing to wildfires (and no doubt to avoid future liability).
As of this writing, Pacific Gas & Electric has cut power numerous times in recent weeks. Southern California Edison and San Diego Gas & Electric have also recently implemented forced outages for their customers.
Since hot, dry and windy weather is a given in California, it’s safe to assume these rolling blackouts will be implemented again and again, and that solar energy storage systems will become more valuable and popular as a result. The media picked up on this trend during PG&E’s planned outage in mid-October. The San Jose Mercury News reported how homeowners and businesses ranging from the Fremont fire station to Apple turned to energy storage to keep critical functions operating.
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