Photovoltaic energy storage project contract

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

Should a solar project include battery storage?

In either a PPA or self-ownership, solar projects that also include battery storage are more complicated than solar-only projects since they need to carefully establish rules for how and when the battery is used. EECBG Program awardees interested in this option, should review the plans early with their local utility.

How do I prepare for a PPA or self-ownership of solar?

To prepare for a PPA or self-ownership of solar (or solar + battery storage) project, EECBG Program awardees will need to identify government departments that should be consulted about solar installation projects, such as facilities/public works; finance; legal; procurement; sustainability; and economic development.

What is the difference between a PPA and a solar lease?

Like PPAs, solar leases offer a similar arrangement, but have fixed monthly payments instead of the monthly PPA payments that vary as the solar electricity output changes. PPAs aim to offer a price per kWh that is lower than the market rate generation cost, though multiple variables factor into the actual price.

Can a PPA be used for a solar project?

EECBG Program awardees interested in this option, should review the plans early with their local utility. Whether the government chooses a PPA or to own the solar project itself, the federal renewable electricity incentives in the Inflation Reduction Act (IRA) can still be applied to the project.

Will energy storage save the energy industry?

It’s generation . . . it’s transmission . . . it’s energy storage! The renewable energy industry continues to view energy storage as the superhero that will save it from its greatest problem—intermittent energy production and the resulting grid reliability issues that such intermittent generation engenders.