On August 23rd, the National Renewable Energy Laboratory (NREL) gave a webinar presentation hosted by the Solar Energy Industries Association (SEIA). The presentation focused on what key factors propel the value of solar plus storage for residential customers and the outlook on adoption in the coming years.
Solar + Storage Adoption is Based on Variable Value
Conclusions were drawn based on NREL’s extensive research into solar storage in terms of market growth and customer benefits. In a 2020 study, NREL cited that storage deployment is “driven by a combination of capacity and energy value”. The more residential customers can get out of adding storage to their PV systems, the more they will adopt and optimize their storage capacity.
A more recent report found that values are significantly influenced by local utility rate structures. NREL assessed a community in Arizona in which all households were enrolled in an experimental distributed generation (DG) rate program. The DG rate structure was intended to reduce grid demand during peak periods. However, the demand surcharges that resulted canceled out almost all solar + storage customer savings.
That being said, individual household savings varied across the board, depending on factors such as peak-time usage, total demand, home size, and the size of their PV system. Therefore, certain households stand to gain much more out of solar + storage installations than others.
NREL also found that storage adoption is heavily dependent on PV pricing. Fortunately, the prices of both PV systems and storage augmentations have shown a continual decline. The cost of solar storage in particular has dipped by almost 10%.
Forecasting sees tremendous opportunities in store for the residential solar + storage market, especially in new construction. NREL estimates that 0.96 million new homes will be built every year between 2017 and 2030.
Leveraging NREL’s Insights
Given the factors above, it’s critical that solar contractors make customer education a priority. Those who are affected by demand-based rates should be informed of how this can impact their solar + storage savings. If the customer would benefit from switching their utility rate structure and is free to do so, this should be encouraged.
Customers who are locked into a demand-based rate structure that invalidates most of the cost incentive may not be the best prospects to pursue. But new construction is fertile territory for new opportunities. Contractors can win these projects by demonstrating to builders that their contribution will avoid delays and will improve a home’s market appeal. Given the extreme prices seen in real estate at the moment, construction companies have a strong concern that building homes with excessively high values can price out otherwise willing buyers.
Leads for Solar Contractors
Clearly, finding ample solar + storage customers still presents challenges. Contractors can enjoy more success by partnering with a lead generation agency capable of delivering a steady supply of legitimate residential buyers.
Grid Freedom is a favored firm in this domain. With 100% exclusive leads that have been personally screened for purchase potential and scheduled for their first appointment, Grid Freedom meets the highest standards of quality. Contractors across America return to the agency as a dependable source of customers, even as the solar industry experiences volatility.
Find Residential Solar Leads at www.GridFreedom.com
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