(3BL Media/Justmeans) - Electricity is like money. Both are useful, fluid and can be converted into action of many different forms. And both can be saved for a rainy day. The ability to save electricity for a rainy, or cloudy day, has suddenly become much more important now that solar, as well as wind power are becoming important contributors to our energy supply.
Without storage, these renewable sources of electric power, would have to be backed up with other sources that can produce power when they canât, which undercuts their economic usefulness.
Utility studies have found that energy storage in sufficient quantity and at a reasonable price could, in some circumstances, obviate the need for new power plants.
Thatâs why the recent announcement by Tesla Motors of their new battery systems, designed to be used for energy storage for homes, businesses, and utilities, is causing such a stir. While the utility analysis said that the breakeven point for storage would occur when the price per kWh fell below $350, which they predicted was years away, Tesla surprised everyone, by showing up with a utility scale battery right now, that they claim can deliver storage at $250 per kWh.
Teslaâs Powerwall for the home is a flat wall-mounted package that provides 10 kWh of storage and will sell for $3500. It will provide battery backup if the grid goes down or it can store electricity from solar panels in an off-grid configuration. By next year, these will be produced by Teslaâs Gigafactory in Nevada.
For utilities, the 100 kWh Powerpack is a scalable module that can go up to gigawatt levels at the $250 per kWh price point. One utility, said Elon Musk, Teslaâs CEO, has already contracted for a 250 MWh system.
Indeed, the biggest impact may be in the utility-class application. Some concerns have been raised about the residential offerings by, among others, SolarCity, a major supplier that happens to have Elon Musk on its board. SolarCity spokesman Jonathan Bass says they are not happy with the available configurations or the economics. Of the two offerings, only the smaller 7 kWh unit is designed to be charged and discharged on a daily basis. And given the fact that many localities allow the grid to fill in the gaps when the sun is not shining, that calls into question the economics of purchasing a home battery, unless you are completely off-grid. The larger 10kWh battery, is designed for backup when the grid goes down. That would be more attractive for high-end homes or small businesses with a critical need for constant power.