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Solar battery storage

Oct 24, 2024

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The background: It’s been more than a year since new state rules for rooftop solar went into effect. The state argued the new rules would boost solar plus storage, but so far installations have only slowed.

The big picture: More battery storage on homes, schools, businesses and other buildings can help the power grid avoid power outages and boost individual household climate resilience.

Keep reading...to meet retirees who rode out recent power outages with their solar panels and home battery and to learn why solar-plus-storage matters in a hotter world.

It’s finally feeling like Fall in Southern California, but we just sweated through the hottest summer on record. The recent hotter, longer heat waves caused power outages across the region.

But some people avoided them — and even helped prevent more widespread outages across the power grid.

Joe and Teresa Tortomasi were one of those households whose power never went off during an extended extreme heat wave in early September. They live in Sierra Madre, a small city nestled against the foothills of the San Gabriel mountains.

“We're in what they call the Upper Canyon,” Joe told me when I visited them at their quaint, light blue painted home with white shutters. “This is very un-L.A. No offense to L.A., it's just very rural.”

“He's saying that because we live right next to the mountains, so as we sit here outside, we feel like we're in the mountains,” added his wife Teresa. “And every time people visit us from anywhere in the L.A. area, they say ‘is this L.A.?’”

The house is in a neighborhood full of whimsical cabins along winding canyon roads. Bobcats, coyotes, bears and other critters are frequent visitors.

The retired teachers have lived here for nearly 40 years. This area has long had relatively frequent power outages because of where it’s located on the broader grid — when circuit breakers or distribution lines are overloaded, there aren’t options for Southern California Edison (SCE) to reroute power here through other lines. Basically, the canyon is at the end of the line.

While doing their part to cut pollution was a big factor in the Tortomasis' decision to install solar panels and battery storage, the power outages plus rising energy costs were also major reasons.

“We tend to have blackouts up in the canyon and we were just getting tired of it,” said Joe.

In their years living here, despite the work SCE has done to fortify the lines serving the canyon, the Tortomasis said power outages have gotten more frequent.

“Mostly because of the warming temperatures,” Teresa said. “30 years ago, it wasn't like this. We can really see the difference and the climate change. When we had that excruciating weather a couple of weeks ago, we were the only ones in our little corner of the canyon [who] still had power.”

That’s because they now have solar panels and a battery. In early September, temperatures here reached as high as 110 degrees and much of the canyon lost power for hours.

“All our neighbors always check with each other, so we were getting texts saying, 'do you have power? Do you have power?’ And we just told everybody, ‘If you need anything, just come over here, because we have power,’” Teresa said.

This summer was also the first time the Tortomasis can remember having to keep their air conditioning going at night.

“We had no cool air at night — our night time was still 85 degrees outside, and it was the first time in our almost 40 years here that we actually did not open our windows at night,” said Teresa.

Rising nighttime temperatures are one of the clearest fingerprints of how fossil fuel pollution is changing our climate. To be able to sleep, they turned on the A/C, using power from their battery, which stored energy that their solar panels had absorbed during the day.

Even though the Tortomasis had to use more electricity, that increased use didn't further strain the power grid we all rely on because they were using power from their battery.

And instead of their costs going up because they have to use more energy due to hotter days and nights, the Tortomasis' electricity bill is in the negatives.

They had to dig into their savings to pay for the solar and battery — as well as install a new roof for the panels and upgrade their electric panel — but they’re now saving money because of the excess power they sell back to the grid.

“We're really making our money back," Joe said. "I mean, we don't have to pay any electric bills."

Plus, living in a high-risk fire area, they don't have to worry about SCE shutting off their power to prevent fires during high-risk weather.

“We feel safer,” said Joe.

“I don't have that stress of always being worried that the power might go out,” said Teresa.

The Tortomasis have essentially negative electric bills because they got their solar panels before cuts to state rooftop solar incentives went into effect last year.

Under the new rules, the state cut how much solar users get paid back for the excess energy they generate. Instead, people who install solar and battery storage will get a better deal when they sell excess energy from their batteries during high-demand times of the evening.

In the decision, which only applies to investor-owned utilities, the California Public Utilities Commission argued the previous incentives for rooftop solar were leading to higher costs for people without solar — a claim that solar advocates and some economic models refute — and that it was time to instead incentivize solar-plus-battery storage.

That’s because we now have more solar power during the day than we can use, so we need to be able to store more of that power for when the sun goes down.

But batteries are still really expensive. Vic Aguilar, who installed the Tortomasis' system, said the cost for a solar-plus-battery system ranges from about $15,000 to more than $120,000.

“The upfront capital expenditure with the new rules is significantly greater because it involves the batteries,” Aguilar said. “The batteries generally double the cost of an average project.”

And, under the new rules, the timeline for breaking even on that investment is now eight to 12 years, instead of six to eight years.

Aguilar — better known as Solar Vic by Sierra Madre locals — has been in the business for 18 years and owns the company Sustainergy Advisors. While his clients in new housing developments and large households have grown, Aguilar said he’s seen a big decline in his middle and lower-income customers since the new state rules went into effect last April.

“There’s still a compelling economic argument that can be made, especially with the larger households — they use so much energy that even under [the new rules] they’re saving ginormous amounts of money,” Aguilar said.

Since the new rules went into effect last year, the solar market has dropped 60% and about 17,000 solar jobs have been cut, said Bernadette Del Chiaro, director of solar industry trade group California Solar and Storage Association.

Ken Wells, who grew up in Compton, got a fresh start through the solar industry.

At 15 years old, he was arrested and incarcerated — it was while he was inside that he read a book about solar and green jobs. When he got out six years later, he trained as a solar installer through a Homeboy Industries program. In 2018, he launched O&M Solar Services with a mission to serve clients in South L.A. and hire formerly incarcerated people, such as himself.

“I saw this industry as a viable opportunity for these individuals to be able to not just get a job, but get a career, get a new identity and have purpose in what they're doing each and every day,” Wells said.

To Wells, his business wasn’t just a way to support himself, but a way to support his community and a healthier future for all.

“When I hired guys, I wasn't just hiring them, giving them jobs. I was...working with them long term to build themselves up and get out of their circumstances,” Wells said.

“Had I got out and went to a warehouse or to an oil refinery, like most people who come home from prison do,” Wells added, “I don’t think I would have developed to the level that I have been able to as an entrepreneur. I don't know another industry that I could have gotten into that would have helped me develop as an individual like this industry has.”

“More people that are going solar today are adding a battery, which is good, but the overall decline in the market does not make up for the growth in storage,” said Del Chiaro. “So we've actually set ourselves back with energy storage, contrary to what the policymakers say their intentions were.”

Del Chiaro said fewer people are now installing solar, let alone batteries too. That's hurt local businesses.

Ken Wells founded South L.A.-based O&M Solar Services in 2018, and had both solar and solar-plus-storage clients. But after the new rules went into effect he had to close his business and lay off his 30 employees.

“There was just this huge drop and I went from doing 20 to 30 projects a month to just seven or one a week,” Wells said. “I was already facing barriers financing my company and getting the capital to scale, so most of what I was doing was bootstrapping. I was taking my money and putting it right back into my business.”

“So when this happened,” Wells added. “I was unable to sustain any longer and I unfortunately had to close my doors, let all my guys go.”

Wells said he’s working to build back his company, but has since shifted into consulting.

Many solar advocates say the change in policy hurts the grid overall.

Rooftop solar-plus-battery storage systems — called "distributed energy" — have already helped the grid avoid widespread blackouts despite recent summers being the hottest in more than 150 years.

The Tortomasis, for example, are part of what’s called a virtual power plant. It’s made up of their home, along with nearly 3,000 other homes that also have solar and batteries.

“You're aggregating them into a fleet so they can all work in concert, like a flock of birds, on demand,” Aguilar explained.

Southern California Edison can pull energy from this residential battery fleet to support the grid when it’s most strained, particularly during hot summer evenings.

That not only helps the utility avoid widespread power outages, but it also reduces the need to power up highly polluting backup generators when extreme, prolonged heat risks brownouts or blackouts.

In 2022, that’s exactly what happened: The state’s grid operator sent out flex alerts — those urgent texts to conserve energy — after a gas-fired peaker power plant generator unexpectedly went offline. To avoid massive blackouts, the state pulled energy from batteries attached to homes, schools and businesses across the state.

“If you take these millions of small systems — they're all highly coordinated, highly technical systems that we're putting up in our garages — they can act like a coordinated power plant and turn on a dime to provide value to the state,” Del Chiaro said.

Currently, the state has more than 2,000 megawatts of distributed battery storage on homes, schools, businesses and government buildings, according to the California Public Utilities Commission. That's about as much energy generated by two typical nuclear reactors.

The state estimates that by 2045, we'll need 52,000 megawatts of battery storage to unhook nearly completely from polluting and planet-heating fossil fuels.

In recent years, the state has made significant progress towards that goal. California now has more than 13,000 megawatts of battery storage.

More than 11,000 megawatts of that is from huge utility-scale batteries. The rest is from "distributed" sources: batteries on homes, businesses, schools and government buildings.

More than half of that battery storage is from homes with solar and batteries, and most of it is coming from L.A. County.

Batteries played a huge role in the grid’s resilience this past summer: Despite it being the hottest summer on record, we didn't experience flex alerts or major rolling blackouts.

“This last summer they were a big part of our resiliency,” said Aguilar. “They really were what saved the grid. And not just on the big utility scale where there are container fields of these giant batteries. A lot of it is happening on a distributed basis.”

And it’s all automated. The Tortomasis don’t have to do anything — they just know where their power’s going via a smartphone app.

“People say, ‘oh the technology is not ready yet,’ Aguilar said. “And they have no idea the robustness, the incredibleness of what we have right now. The renewable revolution is just in time. We are at the stage to implement, implement, implement.”

Solar panels are made to last at least 25 years, so you want to make sure you’re making a good investment.

Here are some tips from installer Vic Aguilar of Sustainergy Advisors:

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