Dive Brief:

• Analysis by the California Energy Storage Alliance estimates the value of integrated systems including solar panels and battery storage at 25 cents/kWh, based on a model being used to determine the the benefit of a variety of resources.
• Currently the state's largest utilities pay rates from 13 cents/kWh to 42 cents/kWh, depending on the size of the energy user, for solar-plus-storage, according to Greentech Media.
• CESA is pushing for a range of "smart tariffs" with adders or incentives that would include measures for time-of-use, locational and attribute pricing.

Dive Insight:

A quarter wont buy you a cup of coffee anymore, but it might get you a kWh of energy.

As California works to overhaul its utility system, integrate distributed resources, and determine how to compensate them, one storage group has come up with a simple figure — 25 cent/kWh. That's where CESA puts the value of solar PV systems backed up by a three-hour battery, according to Greentech Media. The group determined the value using California regulators' "Public Tool" for determining energy values, after tweaking the metrics to include a 50% renewable target for the state.

“We really think that solar-plus-storage is a unique combo here, because we’re getting a flexible resource that we can deploy to certain locations, and it provides value when you need it," Ed Burgess, manager at CESA consultant Strategen Consulting, told Greentech.

CESA has been closely watching California's push to revamp its utility grid, integrating more distributed resources and detemining how best to value them. As the state's investor-owned utilities develop plans that include a broader range of clean, distributed resources, the storage group says it is concerned that there is not sufficient focus on battery options. 

Last week in a filing with the California Public Utilities Commission, CESA told regulators it was concerned about a lack of energy storage being mentioned specifically in a proceeding on demand-side resources.

"While 'distributed energy resources' includes energy storage in its definition, CESA recommends that energy storage be explicitly highlighted," the group said of a proposed decision. "Energy storage offers a multitude of services and values to system operations so should be widely represented in this proceeding."

The group also wants to see more granular tariffs enacted. "CESA believes that smart tariffs mixed with specialized adders and/or incentives will send service providers and customers the data needed to maximize the value of DER assets," the group said. Among factors it would like to see included: time-of-use rates, locational pricing and adders for the type of resources involved.