Tale of Six Cities

Energy Storage Systems 101Tale of Six CitiesAugust 2015

Content Layout

• What is Energy Storage

• What is the current potential market

• What are the useful life of these systems & ROI

• What are the primary uses

• What are the main parts

• How do you show the value

• What chemistries we have

• What brand we represent

• What sizes do they come in

• What are the price ranges

What is Energy Storage

A pre-designed system that banks a block of energy for:

Emergency Backup Power

Grid Stability

Micro grid

A Big Battery with intelligence!

What is the current potential storage market

0

200

400

600

800

1000

1200

1400

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Installed MW

Source: Greentech Media

What are the useful life of these systems & ROI

Chemistry Type Cycles DOD ROI Years

• AGM 1,500 50% 2-5

• VRLA 3,000-5,000 70% 3-6

• Lithium 14,000 80% 3-10

What are the primary uses

Profile Time

• Emergency Backup Power 30 Min

• Demand Reduction 1 Hour

• Peak Shaving 2 Hours

• Renewable Energy Time-Shift 3 Hours

• Shoulder Smoothing 6 Hours

• Micro Grid 24 Hours

What are the main parts

• Energy Management System

• Inverter/Converter

• Charger Controller

• Battery Management System

• Automatic Transfer Switch

• Critical Load Panel

• Circuit Breakers

• Energy Storage Strings

Ohm’s made simple• How do you read the battery ratings?

Amp Hours Volts Watts Hours Kilowatt Hours

1000Ah X 2V = 2,000W = 2kWh

41.66Ah X 48V = 2,000W = 2kWh

• What is C10? The amount of energy discharged in 10 hours

• What is a typical battery string voltage? 48 Volts

• What is Useable Energy Capacity?

The amount of energy to the allowed depth of discharge range which can be from 70%-90%

AC/DC Coupled

AC Coupled:

When you add energy storage to an existing solar system

DC Coupled:

When the solar system is originally installed energy storage

System Sizing Math

California Self Generation Incentive Program (SGIP) Sizing Standard when no demand kW information is available.

Inverter kW Peak Demand= Largest Monthly Bill(kWh/Month)(Load Factor x Days/bill x 24)

Residential Example

9.4 kW= 3000 kWh/August (kWh/Month).43 x 31 x 24 (Load Factor x Days/bill x 24)

AugustLoad Factor kWh Sqft. kW

Residential = .43 3,000 1,500 9.4

Commercial = .55 68,000 50,000 170

Industrial = .76

Agricultural = .63

What sizes do they come in

Example of a Lithium Peak Shaving

Component Capacity Ratio For Example

• Inverter 6.8 kW 1 Valve

• Charge Controller 6.8 kW 1 Pump

• Energy Storage 14 kWh 1:2 Tank

What sizes do they come in

Example of a Micro Grid

Component Capacity Ratio For Example

• Inverter 10kW 1 Valve

• Charge Controller 10kW 1 Pump

• Energy Storage 160kWh 1:16 Tank

Emergency Power Equipment

20kW1 Standby Generator with 100 amp, 16 Circuit Automatic Transfer Switch

Solar PV energy is plugged through the critical load

panel with the automatic transfer switch (ATS). When

the grid goes down the ATS redirects all available power

to these circuits on the critical load panel.

Operating System

Geli EOS, short for Energy Operating System, is a

platform to bring together energy storage, power

systems (such as inverters and converters), smart

grid hardware, network operations, and a partner

company's cloud/on-site energy services, in effect

creating an internet of energy.

Geli Energy Apps

Value maximization for energy storage is achieved by adaptively stacking,

staggering, and bundling services, including renewable energy reliability,

demand response, TOU shifting, and market participation. Real-time co-

optimization and co-operation is a part of Geli's core intellectual property and is

key to making energy storage valuable.

Geli Energy Apps are bundled with the Geli EOS. They deliver information and

control functionality for specific domains, including:

•Demand Charge Management Energy App applies learning algorithms,

forecasting, and stochastic models to minimize facility demand charges. The

Geli EOS Dynamic Rate Structure Libraries enable operation in any utility

territory.

•TOU Energy Shift Energy App operates from charged energy storage during

expensive times of use and obtains benefits from energy shifting and demand

management.

•Demand Response Energy App decreases grid load when signaled by switching

to energy storage operation without changing building/business operations. The

DR Energy App also extends to relay control and load shedding schedules.

•Frequency Regulation Energy App allows energy operators to bid available

resources into an open market. The Geli EOS Energy App will follow an ISO

AGC/ICCP Frequency Response command signal and report the corresponding

actions of the energy storage system or energy asset.

•Electric Vehicle Interoperation Energy App facilitates charging services to the

EV and provides energy services from the EV to the building.

How do you show the value

Hybrid Grid & Micro Grid: GELI ESyst Beta Software

• Storage Sizing Made Simple

• Design financially optimized energy storage systems online.

• Geli ESyst provides system analysis, hardware recommendations,and financial projections all in one easy-to-use tool.

Let’s look under the hood!Inverter/Charger 6.8kW

Schneider Architecture

XW+Inverter/Charger

Context System Control Panel

Context Com Box

Context Automatic Generator Start

5 Year Warranty

Energy Storage 16/19.2 kWh

5-7 Year Warranty

3,000 Cycles 85%

Ambient Temp 5F to 113F

4 Strings of 16 Batteries 12V/100AH

DC Circuit Breaker

Operating System Geli EOS

Energy Storage System (ESS)72” H x 24” W x 24”L

Installed in the Garage

Self Gen City

City: Los Angeles

Utility Company: SCE

Market: Residential

$/kWh: $.28 to $.42

Solar PV: 7.5 kW

Inverter: 6.8 kW

Charger Controller: 6.8 kW

Annual Solar Energy: 13,126 kWh

Daily Solar Energy: 36 kWh

• Benefits:

This work horse battery type will provide thelowest cost of total ownership amortizing over agreater length of time from daily full cycles andpartial states. The added system intelligence willprovide extra system life reducing the daily dutycycles. The system was design for flexibility andpower security and a hefty incentive giving thehomeowner peace of mind.

• Profile Energy StoragePeak Shifting: 7.5 kWhLoad Shifting: 14 kWh

• Battery Type: Lithium PhosphateWarranty: 10 YearsCycles: 14,000Depth of Discharge: 80%State of Discharge: 2C

• Operating System: Geli

• ATS: Briggs & Stratton 100 AMP

• Ambient Air Temp: -5C to 35C

• Incentive: $1.46/w $9,928

• Federal Tax Credit: 30%

• State Tax Credit: N/A

Certifications: UL 1973UL 1998UL 1642UL 1741

• Challenge:

The high annual solar irradiance ofSouthern California coupled with highenergy cost and constant rateincreases have created anenvironment of massive rooftop solardeployments.

• Solution:

The battery type selected is Lithium Phosphatefor its long warranty and greatest duty cyclesfor daily use. The Geli operating system wasselected to provide system intelligence givingthe precision power management for thedifferent utility tariff rates. An automatictransfer switch was included to ensure powerfrom grid brown outs. Additionally the State ofCalifornia currently offers a large incentive forthis solution.

Nessie Curve

City: Honolulu, Hawaii

Utility Company: HECO

Market: Residential

$/kWh: $.45

Solar PV: 7.5 kW

Inverter: 6.8 kW




• Benefits:

This work horse battery type will provide thelowest cost of total ownership amortizing over agreater length of time from daily use. The addedsystem intelligence will provide extra system lifereducing the daily full duty cycles. The systemwas design for flexibility and power securitygiving the homeowner the greatest peace ofmind

• Profile Energy StorageLoad Shifting: 14 kWhMicro grid: 40 kWh

Battery Type: Lithium PhosphateWarranty: 10 YearsCycles: 8,000Depth of Discharge: 80%State of Discharge: 2C



• Ambient Air Temp: 10C to 35C

• Incentive: N/A


• State Tax Credit: 35% or $5,000

Certifications: UL 1973UL 1998UL 1642UL 1741Transient Overvoltage and/or Ride Through

• Challenge:

The high cost of energy has inspired a highdensity of Solar PV installations on theislands. Which has caused HECO the utilitycompany to mandate smart invertertechnologies. Another Island state PuertoRico across the continent will begin requiringenergy storage for all solar interconnectionapprovals.

• Solution:

The battery type selected is Lithium Phosphatefor its long warranty and greatest duty cyclesfor daily full and partial states of use. The Gelioperating system was selected to providesystem intelligence giving the precision powermanagement. An automatic transfer switchwas included to ensure power from gridoutages.

Prepville

City: Atlantic City

Utility Company: ACE

Market: Residential

$/kWh: $.13

Solar PV: 7.5 kW

Inverter: 6.8 kW




• Benefits:

This work horse battery type will providethe lowest total initial cost The systemwas design for backup power securitygiving the homeowner peace of mind incase of emergencies.

• Profile Energy StorageLoad Shifting: 19 kWh

• Battery Type: VRLAWarranty: 10 YearsCycles: 3,000Depth of Discharge: 50%State of Discharge: 2C



• Incentive: $.75/w $5,625


• State Tax Credit: N/A


• Challenge:

With the higher frequency of majorsnow blizzards and category 5hurricanes causing major damageleading to temporary or prolongedpower outages along the South Eastand East coast.

• Solution:

The battery type selected is AGM for itsfloat state charge for emergency backuppower. An automatic transfer switch wasincluded to ensure power from gridoutages. Additional energy storagecapacity could changed or added in thefuture.

Town of Dirt

City: Town of Dirt

Utility Company: N/A

Market: Residential

$/kWh: $.45

Solar PV: 15 kW

Inverter: 13.6 kW




• Benefits

This work horse battery type will providethe lowest cost of total ownershipamortizing over a greater length of time.The added system intelligence willprovide extra system life reducing thedaily duty cycles. The system was designfor flexibility and power security giving thehomeowner peace of mind. This newtechnology allows property owners todevelop their land regardless of the utilityinfrastructure.

• Profile Energy StorageMicro grid: 60 kWh

Battery Type: Lithium PhosphateWarranty: 10 YearsCycles: 14,000Depth of Discharge: 80%State of Discharge: 2C




• Incentive: N/A




• Challenge:

This town is located on the corner of farout and no where, plenty of open spaces.There are no power lines has miles of dirtroads to get there. Beyond the beatenpath exist communities that are beingdeveloped by people of all walks of lifefor many number of reasons. This placehas extreme Summer heat from theSonoran Desert and higher average solarirradiance.

• Solution:

The battery type selected is LithiumPhosphate for its long warranty andgreatest duty cycles for daily use. TheGeli operating system was selected toprovide system intelligence giving theprecision power management. Anautomatic transfer switch was includedto ensure power from grid outages.

Net Where

City: Phoenix

Utility Company: APS

Market: Residential

$/kWh: $.16

Solar PV: 15 kW

Inverter: 13.6 kW




• Benefits

This work horse battery type will providethe lowest cost of total ownershipamortizing over a greater length of time.The added system intelligence willprovide extra system life reducing thedaily duty cycles. The system was designfor flexibility and power security giving thehomeowner peace of mind

• Profile Energy StoragePeak Shifting: 7.5 kWhLoad Shifting: 14 kWh





• Incentive: N/A




• Challenge:

The APS utility territory has above average cost ofpower compared to national averages but hasextreme Summer heat from the Sonoran Desertand higher average solar irradiance. RecentlyAPS was approved to charge residentialhomeowners who are installing a solar system tobe charged a monthly fee for Net Metering, thisfee will be changed every 2 years. Including anenergy storage pilot is being launched by APS for175 homes with $1M of incentives.

• Solution:


Demandapolis

City: Phoenix

Utility Company: SRP

Market: Residential

Solar PV: 7.5 kW

Inverter: 6.8 kW




• Benefits

This work horse battery type will providethe lowest cost of total ownershipamortizing over a greater length of time.The added system intelligence willprovide extra system life reducing thedaily duty cycles. The system was designfor flexibility and power security giving thehomeowner peace of mind

• Profile Energy StoragePeak Shifting: 7.5 kWhShoulder Shifting: 14 kWh





• Incentive: N/A




• Challenge:

The SRP utility territory has anaverage cost of power compared tonational averages but has extremeSummer heat from the SonoranDesert and higher average solarirradiance. Recently SRP wasapproved to charge residentialhomeowners who are installing a solarsystem will be charged a kW demandfee equally as a commercial rate.

• Solution:


SRP New Solar Residential Rate Plan

• Average household 8 kW

• Highest kW demand within 30 minute interval for the month.

• 200 AMP Service Fee $32.44

• 400 AMP Service Fee $45.44

• Economic simulations to be done in EnergyToolBase

kW Demand Charge

Summer Summer

Peak

Winter

May-Jun

Sep-Oct

Jul-Aug Nov-Apr

3 kW $8.03 $9.59 $3.55

7 kW $14.63 $17.82 $5.68

10 kW $27.77 $34.19 $9.74

Time of Use 1PM-8PM 1PM-8PM 5AM-9AM

5PM-9PM

On Peak/Off Peak $.04/$.03 $.06/$.04 $.04/$.03

SRP New Solar Residential Rate PlanAverage Household Usage Profile Old Rate Plan New Rate Plan

kWh kW Old Monthly $/kWh $/kW New Monthly

Jan 800 8 $96 $28 $45 $106

Feb 800 5 $96 $28 $28 $89

Mar 1000 6 $120 $35 $34 $102

Apr 1100 7 $132 $39 $40 $111

May 1500 8 $210 $53 $117 $202

Jun 1800 10 $288 $63 $278 $373

Jul 2500 10 $450 $125 $57 $214

Aug 2400 10 $432 $120 $342 $494

Sep 2500 10 $400 $88 $278 $398

Oct 2000 9 $240 $70 $132 $234

Nov 1200 9 $144 $42 $51 $126

Dec 1000 8 $110 $35 $45 $113

Total 18600 100 $2,718 $725 $1,447 $2,561

The new Paradigm for the SRP region

The take away for solar installers in the Phoenix metro area is it’s not worth selling solar in the SRP region. That is atrue statement if you sell solar the same way as usual it does not make sense anymore. In the previous slide itclearly shows how the tariff shifts the cost away from energy only charges to a 2/3 shift to the new variable powercharge. Under this new rate plan a solar only design is the thing of the past.

Enter in the era Solar 4.0, solar combined with energy storage the design priorities are completely rearranged. Thechallenge is storage cost are considerably more than a solar only design. How does a Solar 4.0 design make dollarsand sense. The goal is to provide the same level of cost to benefit ratio, how that would be achieved is to shift 2/3the initial investment to the energy storage resulting in overall smaller solar rooftop arrays. Let’s take a look at thenew design priorities.

Solar 4.0 Purpose

Solar: Storage:

Investment Tax Credit Demand ArbitrageRenewable Energy source Power shift in the Nessie CurveStorage Optimization Provide Daytime solar utility

Provide short term back up power

Solar 4.0 Design Parameters

Operating System: Power to Energy Ratio: Settings to maximize the tariff structure. Hybrid Inverter 7kW to Battery 7kWh-28kWh

Ambient Temperature: Warranty Cycles: Preferably 25C 3,000 to 20,000 cycles

System Efficiency: Depth of Daily Discharge: 70%-90% 10%-30%

State of Charge: Longer duty cycles and constant swallow partial states of charge will prolong the lifetime yielding a longer investment amortization. The key is to select the battery chemistry that has longer duty cycles and preforms well with constant partial states of charge.

Solar 4.0 Levelized Cost of Energy (LCOE)

The solar industry has come to agree upon the formulas and variables that can accurately determine what the levelized cost ofenergy for a solar only design. LCOE is another way of saying what is the NET Present value for one unit of energy measure. In theSolar 4.0 Era the jury is still out for debate until the overly optimistic sales/marketing driven individuals, the overly pessimisticengineers and the unreasonable investment financiers can come to a meeting of the minds on how to benchmark solar with energystorage. Let me reveal my reasonable benchmarks for Solar 4.0 LCOE.

Solar only LCOE:

Net Initial Investment divided by lifetime energy generation according PV Watts and system design.Ongoing variables are reasonable O & M, hazard insurance, and reasonable discount rate(inflation)

Solar with Energy Storage LCOE:

Solar LCOE Can range from $.03/kWh to $.10/kWh

Net Initial Investment divided by lifetime energy generation according PV Watts and system design.Ongoing variables are reasonable O & M, hazard insurance, and reasonable discount rate(inflation)

Energy Storage LCOE Can range from $10 kW to $130/kW

Net Initial Investment divided by lifetime energy stored according usage profile, system design and battery chemistry. Ongoingvariables are operating system updates, reasonable O & M, hazard insurance, and reasonable discount rate(inflation)

Solar 4.0 The Finance Model

In the Solar 3.0 world the solar operating lease revenue is driven solely by the lifetime energy generation, thatenergy only rate is easy to determine.

In the Solar 4.0 Era, the solar operating lease revenue is going to be driven by the lifetime energy generationwith a much lower energy only rate, additionally a much higher new demand rate would be included in therevenue base. This new demand rate would cover 2/3 of the revenue. How the formula that will solve for thecharge is fundamentally different than what is currently the accepted norm among the solar financecommunity. Mainly because the demand charge is a seasonal variable charge that is directly tied to the timingof the building load. The building load variables come from occupancy and the yearly weather patterns.

The energy storage formula should model what the energy efficiency finance community utilizes from anenergy savings agreement. A weather normalized monthly demand profile is created as the baseline tomeasure from and the operating system is optimized for maximum demand arbitrage. The Solar 4.0 feewould follow the seasonal variable rate.

As in all current existing solar operating leases an annual escalator would be included.

Energy Storage in the News

Elon Musk Teases A New Tesla: Could It Be A Home Battery?

http://www.forbes.com/sites/michelinemaynard/2015/03/30/elon-musk-teases-a-new-tesla-could-it-be-a-home-battery/

Rooftop-solar billing issues far from settled

http://www.azcentral.com/story/money/business/2015/03/02/rooftop-solar-billing-issues-far-settled/24255847/

APS Proposes $21 Monthly Fee for Residential PV, Launches Home Energy Storage Pilot

http://www.greentechmedia.com/articles/read/APS-Proposes-21-Monthly-Fee-for-Residential-PV-Launches-Home-Energy-Stora

Tucson Electric Power proposes reduced net metering rate for solar customers

http://www.utilitydive.com/news/tucson-electric-power-proposes-reduced-net-metering-rate-for-solar-customer/379597/

http://www.forbes.com/sites/michelinemaynard/2015/03/30/elon-musk-teases-a-new-tesla-could-it-be-a-home-battery/

http://www.azcentral.com/story/money/business/2015/03/02/rooftop-solar-billing-issues-far-settled/24255847/

http://www.greentechmedia.com/articles/read/APS-Proposes-21-Monthly-Fee-for-Residential-PV-Launches-Home-Energy-Stora

http://www.utilitydive.com/news/tucson-electric-power-proposes-reduced-net-metering-rate-for-solar-customer/379597/

Groundbreaking Solar with

Energy Storage Solutions

Tale of Six Cities

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