11
ARTICLES PUBLISHED: XX MONTH XXXX | VOLUME: 2 | ARTICLE NUMBER: 17001 The impacts of storing solar energy in the home to reduce reliance on the utility Robert L. Fares * and Michael E. Webber There has been growing interest in using energy storage to capture solar energy for later use in the home to reduce reliance on the traditional utility. However, few studies have critically assessed the trade-os associated with storing solar energy rather than sending it to the utility grid, as is typically done today. Here we show that a typical battery system could reduce peak power demand by 8–32% and reduce peak power injections by 5–42%, depending on how it operates. However, storage ineciencies increase annual energy consumption by 324–591kWh per household on average. Furthermore, storage operation indirectly increases emissions by 153–303 kg CO 2 , 0.03–0.20 kg SO 2 and 0.04–0.26 kg NO x per Texas household annually. Thus, home energy storage would not automatically reduce emissions or energy consumption unless it directly enables renewable energy. I n recent years, there has been growing interest in storing energy 1 produced from rooftop photovoltaic panels in a home battery 2 system to minimize reliance on the electric utility 1 . A number 3 of vendors have sought to capture this emerging market, including 4 electric vehicle market leader Tesla and German home energy 5 storage provider Sonnenbatterie 2,3 . Notably, Tesla has partnered 6 with Green Mountain Power, one of the largest electric providers 7 in the state of Vermont, to offer home storage to its customers; 8 and Sonnenbatterie has partnered with Sungevity, the largest private 9 solar company in the United States 4,5 . 10 While there is a growing market for home energy storage for 11 rooftop solar panels, storage is not strictly required to integrate 12 rooftop photovoltaic systems with the grid. A study on the impacts 13 of rooftop photovoltaic panels in California found that even at 100% 14 penetration (measured as the ratio between nameplate capacity and 15 peak system demand), the utility Pacific Gas and Electric (PG&E) 16 could maintain adequate voltage levels in its system by increasing 17 the number of transformer tap changing operations at a cost of 18 US$442,000 annually—or 0.007% of its US$6 billion annual opera- 19 tion and maintenance budget 6,7 . These findings align with previous 20 findings on the impact of high photovoltaic penetration in distribu- 21 tion circuits in California 8 . Furthermore, a number of studies have 22 shown that upgrading conductors, upgrading the transformer, or 23 incorporating ‘smart’ photovoltaic inverter control could be used 24 in lieu of storage to maintain adequate system voltage 9–14 . Even if 25 energy storage were needed to integrate rooftop solar panels, it is 26 not clear that it would have to be installed at the household level. 27 Despite the fact that energy storage is rarely required to integrate 28 rooftop solar panels, there is significant interest in capturing on- 29 site solar generation to minimize reliance on the electricity utility 30 and injections of solar energy to the grid. This application has 31 been studied extensively in the literature 15–21 , and it is the primary 32 value proposition offered to residential customers by home energy 33 storage vendors 2,3,22 . 34 While a number of studies have assessed the benefits of energy 35 storage that captures rooftop solar energy to mitigate overvoltage 36 in the distribution grid and hedge utility tariffs 20,23,24 , the amount 37 of energy consumed by the battery during operation and the 38 corresponding emissions footprint is typically neglected. One 39 notable exception is Q.1 McKenna et al.’s 2013 study, which found 40 lead-acid batteries used with solar panels in the UK would increase 41 both primary energy consumption and carbon dioxide emissions 25 . 42 In this paper we critically assess the trade-offs of using lithium- 43 ion battery storage to capture solar energy and minimize reliance on 44 the utility. We build on previous work by using measured electricity 45 use and production data from 99 Texas households to understand 46 how adding energy storage would impact power demand, energy 47 consumption, electricity service costs, and emissions of CO 2 , SO 2 48 and NO x from the electricity system. We consider two different stor- 49 age operation models and compare their impacts. We also perform a 50 sensitivity analysis considering various storage efficiencies, storage 51 energy capacities, and storage power capacities to understand the 52 impact of energy storage under different scenarios. 53 Energy storage system model 54 The energy storage application considered in this paper is minimiz- 55 ing the interaction between a household and the utility by minimiz- 56 ing power draws from and injections to the utility grid for the benefit 57 of the electricity customer in terms of increased solar energy self- 58 consumption, independence from the utility, and reduced sensitivity 59 to grid outages. This application has been studied extensively in the 60 literature, and is the primary value proposition offered to residential 61 customers by home energy storage vendors 2,3,15–20,22 . 62 We utilize electricity data directly measured from 99 Texas 63 households over calendar year 2014 to reveal how home storage 64 would operate with solar panels to minimize reliance on the 65 utility. These data track electricity use and solar production with 66 a one-minute time resolution, allowing us to reveal how storage 67 could respond to short-duration power fluctuations. The data were 68 collected on a voluntary basis by the non-profit entity Pecan Street 69 and are freely available to university researchers through an online 70 portal 26 . Summary statistics for the 99 households in the sample are 71 provided in Supplementary Table 1. 72 We model home energy storage operation using two different 73 methods: a ‘target zero’ approach where the battery does not have 74 information about the future level of solar generation or electricity 75 demand and seeks to reduce injections to and demand from the 76 grid to zero at all times; and a ‘minimize power’ approach where 77 the battery system has perfect information about the future level of 78 electricity demand and solar generation over the day, and plans its 79 Department of Mechanical Engineering, The University of Texas, Austin, Texas 78712, USA. *e-mail: [email protected] NATURE ENERGY | www.nature.com/natureenergy 1

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ARTICLESPUBLISHED: XXMONTH XXXX | VOLUME: 2 | ARTICLE NUMBER: 17001

The impacts of storing solar energy in the home toreduce reliance on the utilityRobert L. Fares* and Michael E. Webber

There has been growing interest in using energy storage to capture solar energy for later use in the home to reduce reliance onthe traditional utility. However, few studies have critically assessed the trade-o�s associated with storing solar energy ratherthan sending it to the utility grid, as is typically done today. Herewe show that a typical battery system could reduce peak powerdemand by 8–32% and reduce peak power injections by 5–42%, depending on how it operates. However, storage ine�cienciesincrease annual energy consumption by 324–591 kWh per household on average. Furthermore, storage operation indirectlyincreases emissions by 153–303 kg CO2, 0.03–0.20 kg SO2 and 0.04–0.26 kg NOx per Texas household annually. Thus, homeenergy storage would not automatically reduce emissions or energy consumption unless it directly enables renewable energy.

In recent years, there has been growing interest in storing energy1

produced from rooftop photovoltaic panels in a home battery2

system to minimize reliance on the electric utility1. A number3

of vendors have sought to capture this emerging market, including4

electric vehicle market leader Tesla and German home energy5

storage provider Sonnenbatterie2,3. Notably, Tesla has partnered6

with Green Mountain Power, one of the largest electric providers7

in the state of Vermont, to offer home storage to its customers;8

and Sonnenbatterie has partnered with Sungevity, the largest private9

solar company in the United States4,5.10

While there is a growing market for home energy storage for11

rooftop solar panels, storage is not strictly required to integrate12

rooftop photovoltaic systems with the grid. A study on the impacts13

of rooftop photovoltaic panels in California found that even at 100%14

penetration (measured as the ratio between nameplate capacity and15

peak system demand), the utility Pacific Gas and Electric (PG&E)16

could maintain adequate voltage levels in its system by increasing17

the number of transformer tap changing operations at a cost of18

US$442,000 annually—or 0.007% of its US$6 billion annual opera-19

tion and maintenance budget6,7. These findings align with previous20

findings on the impact of high photovoltaic penetration in distribu-21

tion circuits in California8. Furthermore, a number of studies have22

shown that upgrading conductors, upgrading the transformer, or23

incorporating ‘smart’ photovoltaic inverter control could be used24

in lieu of storage to maintain adequate system voltage9–14. Even if25

energy storage were needed to integrate rooftop solar panels, it is26

not clear that it would have to be installed at the household level.27

Despite the fact that energy storage is rarely required to integrate28

rooftop solar panels, there is significant interest in capturing on-29

site solar generation to minimize reliance on the electricity utility30

and injections of solar energy to the grid. This application has31

been studied extensively in the literature15–21, and it is the primary32

value proposition offered to residential customers by home energy33

storage vendors2,3,22.34

While a number of studies have assessed the benefits of energy35

storage that captures rooftop solar energy to mitigate overvoltage36

in the distribution grid and hedge utility tariffs20,23,24, the amount37

of energy consumed by the battery during operation and the38

corresponding emissions footprint is typically neglected. One39

notable exception isQ.1 McKenna et al.’s 2013 study, which found40

lead-acid batteries used with solar panels in the UK would increase 41

both primary energy consumption and carbon dioxide emissions25. 42

In this paper we critically assess the trade-offs of using lithium- 43

ion battery storage to capture solar energy andminimize reliance on 44

the utility. We build on previous work by using measured electricity 45

use and production data from 99 Texas households to understand 46

how adding energy storage would impact power demand, energy 47

consumption, electricity service costs, and emissions of CO2, SO2 48

andNOx from the electricity system.We consider two different stor- 49

age operationmodels and compare their impacts.We also perform a 50

sensitivity analysis considering various storage efficiencies, storage 51

energy capacities, and storage power capacities to understand the 52

impact of energy storage under different scenarios. 53

Energy storage systemmodel 54

The energy storage application considered in this paper is minimiz- 55

ing the interaction between a household and the utility by minimiz- 56

ing power draws fromand injections to the utility grid for the benefit 57

of the electricity customer in terms of increased solar energy self- 58

consumption, independence from the utility, and reduced sensitivity 59

to grid outages. This application has been studied extensively in the 60

literature, and is the primary value proposition offered to residential 61

customers by home energy storage vendors2,3,15–20,22. 62

We utilize electricity data directly measured from 99 Texas 63

households over calendar year 2014 to reveal how home storage 64

would operate with solar panels to minimize reliance on the 65

utility. These data track electricity use and solar production with 66

a one-minute time resolution, allowing us to reveal how storage 67

could respond to short-duration power fluctuations. The data were 68

collected on a voluntary basis by the non-profit entity Pecan Street 69

and are freely available to university researchers through an online 70

portal26. Summary statistics for the 99 households in the sample are 71

provided in Supplementary Table 1. 72

We model home energy storage operation using two different 73

methods: a ‘target zero’ approach where the battery does not have 74

information about the future level of solar generation or electricity 75

demand and seeks to reduce injections to and demand from the 76

grid to zero at all times; and a ‘minimize power’ approach where 77

the battery system has perfect information about the future level of 78

electricity demand and solar generation over the day, and plans its 79

Department of Mechanical Engineering, The University of Texas, Austin, Texas 78712, USA. *e-mail: [email protected]

NATURE ENERGY | www.nature.com/natureenergy 1

robertfares
Cross-Out
robertfares
Inserted Text
a 2013 study that
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ARTICLES NATURE ENERGY

UseSolar

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'Target zero' operationa b 'Minimize power' operation

Optimization

Minimize sum of squares ofPuse(t) − Pgen(t) − Pbatt(t) over 24 h

Subject to battery energy and powerconstraints

Calculate target battery powerPbatt(t) = Puse(t) − Pgen(t)to zero out net demand

Pbatt(t) = 0 Pbatt(t) = Puse(t) − Pgen(t)

Pbatt(t) = Prated Pbatt(t) = Puse(t) − Pgen(t) Pbatt(t) over 24 h

Battery energyconstraints

violated

Battery powerconstraints

violated

Yes No

Yes No

Perfect foresight ofPuse(t), Pgen(t)

over 24 h

Figure 1 | Storage operation model control logic and sample outputs. a, The ‘target zero’ method steps from one minute to the next with no foresight offuture electricity demand or solar generation, and seeks to set net grid demand to zero whenever possible without violating the battery’s energy and powerconstraints. b, The ‘minimize power’ method has perfect day-ahead foresight of electricity demand and solar generation, and uses an optimization programto minimize the sum of squares of net grid demand over the entire day. Sample outputs for each method are shown below the flowcharts, with storagedischarging given a negative sign and storage charging given a positive sign.

operation to minimize the sum of the squares of net power demand1

from the utility over the entire day. Besides the level of foresight, the2

primary distinction between these two methods is that ‘target zero’3

seeks tomaximize the number of hours during which the household4

is completely independent from the grid, while ‘minimize power’5

seeks to minimize the magnitude of grid power demand over every6

minute of the day with equal weights placed on each minute, so that7

the household is resilient to a grid outage regardless of when it oc-8

curs. Furthermore, the ‘target zero’mode restricts the battery system9

to charge only with solar power, while the ‘minimize power’ mode10

allows the battery to charge with grid or solar electricity tominimize11

demand over the day. Figure 1 illustrates the control logic of each12

operational method and shows sample outputs for one household.13

These two operational methods were selected because they14

represent plausible yet distinct methods for storing solar energy in15

the home to reduce reliance on the utility. ‘Target zero’ prioritizes16

being as independent as possible during the current minute, while17

‘minimize power’ prioritizes being as independent as possible over18

the entire day. By considering these two plausible yet distinct19

operational strategies, we can show the range of impacts that would20

be expected for storage systems that operate somewhere between the21

no foresight and perfect foresight extremes represented by ‘target22

zero’ and ‘minimize power,’ respectively.23

Q.2 Note that both of these operational modes take a customer-24

centric perspective that seeks to minimize interaction with the25

utility as much as possible. Neither operational method explicitly 26

considers other grid-level services that could be offered by 27

distributed energy storage or the potential economic benefits of 28

those services. While we are aware of the fact that the methods of 29

storage operation selected are not optimal from a purely economic 30

or system perspective, our objective is to assess the specific impacts 31

of storing solar energy in the home to minimize reliance on the 32

utility, because this application is the primary value proposition 33

offered to residential customers by storage vendors2,3,22. The details 34

of each of these operational models are provided in the Methods. 35

For both operational models, three parameters define the home 36

energy storage system: its power capacity (P rated) in kilowatts, its 37

energy capacity (Erated) in kilowatt hours, and its roundtrip (a.c. to 38

a.c.) energy efficiency (ηrt). For the base case battery system consid- 39

ered, we set these parameters equal to P rated = 3.3 kW, Erated = 7 kWh 40

and ηrt = 85%, corresponding to the parameters announced for 41

a common home battery system for daily cycle applications3. We 42

also consider a range of power capacities P rated = 1–7 kW, energy 43

capacitiesErated =1–7 kWh, and roundtrip efficiencies ηrt =70–100% 44

in our sensitivity analysis, as discussed in Supplementary Note 1. 45

Power demand and energy consumption impacts 46

Figure 2 illustrates the effect that home energy storage has on the ag- 47

gregate net power demand (electric loadminus solar generation) for 48

the 99 households considered. When home energy storage operates 49

2 NATURE ENERGY | www.nature.com/natureenergy

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NATURE ENERGY ARTICLES

−400

−200

0

200

400

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Net

pow

er d

eman

d,99

hou

seho

lds

(kW

)No storageStorage: 'Target zero' operationStorage: 'Minimize power' operation

Figure 2 | Aggregate power demand impact of adding energy storage.Energy storage reduces the magnitude of power flows in the local utilitygrid by storing produced solar energy for later use in the home. Whenstorage operates under the ‘target zero’ mode (shown in blue) with noforesight of future electricity demand or solar generation, it reduces themaximum aggregate power demand for the 99 households by 8% and themaximum magnitude of reverse power flows by 5%. When storageoperates under the ‘minimize power’ mode (shown in red) with perfectforesight, it reduces peak power demand by 32% and reduces themaximum magnitude of reverse power flows by 42%.

according to the ‘target zero’ mode, the aggregate peak demand is1

reduced by 29 kWor 8% from a value of 378 kWwithout storage to a2

value of 349 kWwith storage. Under the ‘minimize power’ operating3

mode, energy storage reduces the level of peak demand by 121 kW4

or 32%. Likewise, the maximum magnitude of reverse power flows5

is reduced by 17 kW or 5% when storage operates in the ‘target zero’6

mode versus 158 kWor 42%when storage operates in the ‘minimize7

power’mode. The results shown in Fig. 2 are for the base case battery8

system considered (P rated = 3.3 kW, Erated = 7 kWh and ηrt = 85%).9

Supplementary Figs 6–8 show how changing the power capacity,10

energy capacity, and efficiency of the storage systems affects their11

ability to reduce aggregate peak demand and injections.12

The change in aggregate power demand is an important metric13

for the utility, which must size distribution equipment to meet14

the expected maximum magnitude of net electricity demand.15

However, residential electricity customers are not typically billed16

for their demand in kilowatts, but rather for their cumulative17

energy consumption in kilowatt hours. Thus, we consider the energy18

consumption impact of home storage on a customer-by-customer19

basis. Figure 3 illustrates the change in annual energy consumption20

from the addition of storage for each of the 99 households when21

it is operated under the two operating modes considered. Because22

home energy storage consumes some energy every time it charges23

and discharges, annual energy consumption increases for every24

household. The mean increase in annual energy use across the 9925

households is 338 kWh when storage operates in the ‘target zero’26

mode and 572 kWh when storage operates in the ‘minimize power’27

mode, illustrated by the dashed vertical lines in Fig. 3. This increase28

is equal to 8%and 14%, respectively, of the average annual net energy29

consumption of sampled households. We compute 95% confidence30

intervals for the corresponding population means using a Student’s31

t-test, resulting in an estimated mean additional annual energy32

consumption of 338 ± 14 kWh under the ‘target zero’ operating33

scenario and 572 ± 19 kWh under the ‘minimize power’ operating34

scenario. Supplementary Figs 9–11 show how changing the power35

capacity, energy capacity, and efficiency of the storage system36

considered affects the mean increase in energy consumption. Note37

that the average increase in energy consumption caused by adding38

storage is small compared with the average decrease from adding39

solar panels in the first place, as discussed in Supplementary Note 240

and illustrated in Supplementary Fig. 32. Thus, energy storage that41

directly enables rooftop photovoltaic panels could lead to a decrease42

in net household energy consumption, although energy storage is43

typically not required6–8.44

Num

ber o

f hou

seho

lds

0 200 400 600 800 1,000

0

10

20

30

40

50

Additional annual energy consumption (kWh per household)

'Target zero' operation'Minimize power' operationSample meansPopulation means 95% CI

Figure 3 | Energy consumption impact of adding energy storage. Theincrease in energy consumption observed across the 99-household sampleis shown using a histogram. The dashed lines indicate the mean increaseacross the sample, and the shaded areas indicate 95% confidence intervalsof the expected mean across all households computed using a Student’st-test. The average additional energy consumption caused by home energystorage is 338± 14 kWh under the ‘target zero’ operating scenario and572± 19 kWh under the ‘minimize power’ operating scenario.

Economic impacts 45

In addition to the impact that home energy storage would have on 46

electricity demand and consumption, we also consider the impact 47

that storage used to isolate customers from the utility and increase 48

solar self-consumption would have on the cost of electricity service 49

to the customer. Note that we did not explicitly consider a particular 50

utility tariff structure when selecting the objective function for 51

storage operational management, because our goal is to show the 52

economic impact of storage used to isolate a customer with solar 53

panels from the utility without binding storage operation to a 54

particular utility’s tariff.We consider the economic impact of storage 55

used in Austin, Texas (where the home electricity data used in 56

this paper were collected), other areas of Texas, and the states of 57

Hawaii and California, which have seen a significant penetration of 58

rooftop solar panels and are strong candidates for early home energy 59

storage deployments. 60

Table 1 shows the average annual customer benefit and present 61

value calculated across our 99-household sample for the base case 62

3.3 kW, 7 kWh, 85% efficient energy storage system considered. 63

Results are shown for seven different Texas utility tariffs27–37, as 64

well as four Hawaiian Electric Company (HECO) tariffs38–42 and 65

three California tariffs43–48. Note that Hawaii and California are 66

shown only for illustration, as storage that operates in these regions 67

would see different patterns of electricity use and generation than 68

those observed from our sample of Texas households. For each 69

tariff, the approximate consumption tariff and feed-in tariff are 70

shown in US cents per kilowatt hour. These approximate values 71

are based on the average monthly consumption and production 72

measured across our sample. The values shown for the average 73

annual customer benefit and present value are calculated on the 74

basis of each household’s precise monthly electricity use and each 75

utility’s precise tariff structures, which typically include volumetric 76

tiered rates, seasonal rates, and other subtleties that would be 77

difficult to summarize here. We refer the reader to the citations 78

provided for each tariff in Table 1. 79

In general, using storage to increase solar self-consumption 80

provides a financial benefit when the consumption tariff is 81

higher than the feed-in tariff. The maximum present value that 82

could be realized in Texas is US$95 kWh−1 of storage capacity. 83

If Texans were exposed to Maui’s electric rates, the maximum 84

would increase to US$287 kWh−1. The minimum present value 85

observed under Texas electricity tariffs is −US$60 kWh−1. If 86

Texans were exposed to California’s electric rates, the minimum 87

would fall to −US$143 kWh−1. The installed cost of a lithium- 88

ion battery system used for residential applications ranges from 89

approximately US$700–US$1,800 kWh−1 of storage capacity, where 90

US$700 kWh−1 represents a low cost estimate for a market-leading 91

NATURE ENERGY | www.nature.com/natureenergy 3

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ARTICLES NATURE ENERGY

Table 1 | Economic impacts of adding energy storage.

‘Target zero’ ‘Minimize power’

Electric utility Tari� name Approximateconsumptiontari�(US¢ kWh−1)

Approximatefeed-in tari�(US¢ kWh−1)

Averageannualbenefit(US$ yr−1)

Ten-yearpresent value(US$ kWh−1)

Averageannualbenefit(US$ yr−1)

Ten-yearpresent value(US$ kWh−1)

Austin Energy Value of Solar27,28 9.0 10.9 −31 −32 −57 −58San Antonio− CPS Energy Net Energy Metering29,30 9.8 9.8 −27 −27 −49 −50MP2 Energy + Oncor Net Energy Metering31–33 10.1 10.1 −34 −35 −58 −60MP2 Energy + Oncor Net Energy Buyback33,34 8 3.6 78 80 57 58MP2 Energy + Centerpoint Net Energy Buyback33,34 8.8 3.6 93 95 70 72TXU Energy + Oncor Clean Energy Credit33,35,36 11.4 7.5 50 51 24 25TXU Energy + Centerpoint Clean Energy Credit33,35,37 9.9 7.5 21 21 −1.9 −1.9HECO− Hawaii/Oahu Customer Grid Supply38,39 22.4 15.1 107 110 58 59HECO−Maui Customer Grid Supply38,40 33.8 17.16 280 287 207 212HECO−Molokai Customer Grid Supply38,41 39.0 24.07 251 258 165 169HECO− Lanai Customer Grid Supply38,42 43.4 27.88 233 239 140 143California− PG&E Net Energy Metering43,44 28.1 28.1 −72 −74 −140 −143California− SDG&E Net Energy Metering45,46 27.9 27.9 −71 −73 −139 −143California− SCE Net Energy Metering47,48 20.9 20.9 −55 −57 −105 −107We use utility tari�s from Texas, Hawaii and California to show how storage operating as described in this paper would a�ect the cost of electricity service to customers. Note that the Hawaii andCalifornia cases are shown only for illustration, because storage would see di�erent load and generation profiles than those observed from our sample of Texas households. The installed price of a homeenergy storage system would have to fall below US$100 kWh−1 to provide a benefit under current Texas electricity tari�s.

storage vendor in 2016 and US$1,800 kWh−1 represents the high1

cost estimate reported to the US Department of Energy in 20132

for its Energy Storage Handbook49,50. Thus, under no scenario3

considered here could storage provide sufficient direct economic4

benefit to the customer to offset its upfront cost. The installed5

price would have to fall below US$100 kWh−1 of storage capacity6

to provide a benefit under current Texas electricity tariffs. Details7

of the economic calculations carried out to obtain the data given8

in Table 1 are provided in the Methods. The complete range of9

customer benefits calculated across our 99-household sample for10

each utility tariff is provided in Supplementary Figs 14–27.11

Electricity system emissions impacts12

In addition to the impact that home energy storage has on electricity13

demand and consumption, we also consider the indirect impact it14

would have on electricity system emissions. As the households in15

the data set are located in Texas, we use marginal emissions factors16

calculated for the Texas electricity system from US Environmental17

Protection Agency emissions monitoring data to approximate the18

change in emissions associatedwith the hourly changes in electricity19

demand caused by home energy storage51,52. These data report the20

emissions in kilograms of CO2, SO2 and NOx per megawatt hour21

of marginal change in electricity consumption at 5% quantiles of22

fossil generation online measured in gigawatts. We use these data23

to approximate marginal emissions factors for each hour of the24

year by comparing them with the measured hourly level of fossil25

generation in the Texas electricity system over 201453. The resulting26

hourly marginal emissions factors are used to calculate how adding27

home energy storage would impact annual emissions for each28

household considered. The Methods discusses these calculations in29

detail.Marginal emissions factors for the Texas electricity system are30

provided in Supplementary Figs 28–31.31

We find that the addition of energy storage to a household with32

existing rooftop solar panels in the Texas electricity system would33

increase annual emissions of CO2, SO2 and NOx for an average34

household. When storage operates under the ‘target zero’ mode,35

its mean emissions impact is 160 ± 7 kg CO2, 0.05 ± 0.02 kg SO236

and 0.05 ± 0.01 kg NOx per household per year. When storage37

operates under the ‘minimize power’ mode its mean emissions38

impact increases to 290 ± 13 kg CO2, 0.16 ± 0.04 kg SO2 and39

0.24 ± 0.02 kg NOx per household per year. The complete range of 40

emissions impacts across the 99-household sample is illustrated in 41

Fig. 4. A sensitivity analysis of emissions impacts to energy storage 42

system parameters is provided in the Supplementary Information. Q.343

Note that while adding storage to homes with existing solar panels 44

leads to an increase in emissions on average, the observed increase 45

is smaller than the average decrease in emissions caused by adding 46

solar panels in the first place, as discussed in Supplementary Note 2 47

and illustrated in Supplementary Figs 33–35. However, energy 48

storage is typically not required to integrate solar panels6–8. 49

The change in grid emissions from the addition of home battery 50

energy storage is caused by two separate factors: the additional 51

energy consumption required to cover storage inefficiencies, and the 52

fact that storage shifts electricity demand in time, and alters which 53

generators are used to provide energy not produced from rooftop 54

solar panels. 55

To gauge how much of the emissions impact of home energy 56

storage is caused by its energy consumption versus its temporal 57

impact on electricity demand, we test the sensitivity of the CO2, SO2 58

andNOx emissions impact to storage system a.c.–a.c. roundtrip effi- 59

ciency. The results of this analysis are illustrated in Fig. 5. The mean 60

emissions impacts calculated across our sample of 99 households are 61

illustrated by the solid lines, and 95% confidence intervals of the 62

corresponding population means are illustrated by the shaded areas 63

around each line. We also calculated the sensitivity of the emissions 64

impacts to the storage system’s power capacity and energy capacity. 65

These results are provided in Supplementary Figs 12 and 13. 66

Under the ‘target zero’ operating scenario, storage could reduce 67

SO2 and NOx emissions if its a.c.–a.c. roundtrip efficiency exceeds 68

90%. However, it could not reduce CO2 emissions unless its ef- 69

ficiency approaches 100%. The sensitivity of emissions to energy 70

efficiency changes under the ‘minimize power’ operating scenario 71

because the battery charges and discharges at different times of day. 72

Under this operating scenario, storage could reduce SO2 emissions 73

if a.c.–a.c. roundtrip efficiency exceeds 95%, but it could not reduce 74

NOx emissions even if efficiency equals 100%, because it shifts more 75

energy production to natural gas combustion turbines. For refer- 76

ence, reported a.c.–a.c. roundtrip efficiencies from Li-ion energy 77

storage vendors range from 80–93%, although these estimatesmight 78

be optimistic because they are reported values and not measured 79

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NATURE ENERGY ARTICLES

0 100 200 300 400 500 60005

1015

20253035

Additional annual CO2 emissions (kg per household)

‘Target zero‘ operation‘Minimize power‘ operationSample meansPopulation means 95% CI

−0.2 0.0 0.2 0.4 0.6 0.805

1015

20253035

Change in annual SO2 emissions (kg per household)

‘Target zero’ operation‘Minimize power’ operationSample meansPopulation means 95% CI

Num

ber o

fho

useh

olds

−0.1 0.0 0.1 0.2 0.3 0.4 0.50

1020304050c

Num

ber o

fho

useh

olds

b

Num

ber o

fho

useh

olds

a

Change in annual NOx emissions (kg per household)

‘Target zero’ operation‘Minimize power’ operationSample meansPopulation means 95% CI

Figure 4 | Emissions impacts of adding energy storage. a–c, The change inelectricity system CO2 (a), SO2 (b) and NOx (c) emissions observed acrossthe 99-household sample shown using histograms. The dashed linesindicate the mean impacts observed across the sample, and the shadedareas indicate 95% confidence intervals of the expected mean across allhouseholds computed using a Student’s t-test.

from the field49. A roundtrip efficiency exceeding 90% would be1

difficult to achieve due to losses in the battery pack itself, additional2

losses in the power conditioning system that converts the battery’s3

d.c. electricity into a.c. electricity suitable for the grid, and supple-4

mental energy required for thermal controls to maintain an accept-5

able battery pack temperature. Thus, adding home energy storage to6

households with existing photovoltaic panels in Texas would most7

likely lead to an increase in CO2, SO2 and NOx emissions.8

Discussion and conclusions9

Our findings on the power demand impact of home energy storage10

show that it could be a useful tool to reduce the magnitude of11

power flows in the utility grid. This reduction would benefit the12

utility in two ways: it would reduce the required capacity of electric13

delivery equipment such as substations and transformers54, and it14

would reduce the need for new generation capacity to reliably meet15

peak electricity demand55. These benefits are greater when home16

energy storage operates in a way that minimizes the magnitude of17

households’ individual power flows (our ‘minimize power’ scenario)18

versus when home energy storage operates in a way that seeks19

to reduce power flows between the household and the utility to20

zero whenever possible (our ‘target zero’ scenario). Note that these21

benefits arise even though storage operates from a customer-centric22

perspective that seeks to minimize customers’ reliance on the23

electric utility. If storage operated to explicitly benefit the utility24

without trying to isolate customers, there would be a greater benefit25

to the utility.26

While home energy storage is a useful tool to reduce power27

flows in the distribution system, our findings indicate that it28

would increase net energy consumption due to energy storage29

inefficiencies. Under common net-metering tariffs, which credit30

customers for solar energy at a rate equal to the rate charged31

for energy consumption, the increase in energy consumption32

from storage leads to an increase in customers’ utility bills, as 33

shown in Table 1. However, in areas where the tariff charged for 34

consumption is higher than the feed-in tariff for solar energy, 35

the addition of storage can provide an economic benefit to the 36

customer, despite the fact that it leads to higher consumption overall. 37

These instances mirror the current situation in Germany, where 38

the feed-in tariff decreased in 2012 below the rate charged for 39

electricity consumption, creating an incentive for home storage23. 40

Under current Texas utility tariffs, the base case energy storage 41

system has a maximum present value of US$95 kWh−1 for a typical 42

household. This value is much lower than the current installed 43

cost of a home energy storage system (US$700–US$1,800 kWh−1 of 44

storage capacity49,50), so storage could not provide a direct economic 45

benefit to Texas customers under current tariffs. It is worth noting 46

that the customer benefit of adding energy storage was found to be 47

higher when it operates according to the ‘target zero’ approach, even 48

though this approach provides less benefit to the utility in terms 49

of reduced power demand and injections. This finding indicates 50

that it might be useful for utilities to institute demand charges for 51

residential customers with energy storage to explicitly incentivize 52

reducing power demand and injections. 53

Because energy storage decreases kilowatt power flows in the 54

utility grid but increases kilowatt hour sales of electric energy, it 55

would be in the utility’s interest for consumers with solar panels to 56

install home storage. While adding storage does reduce a customer’s 57

reliance on the utility, previous analysis has shown that mass 58

defection from the utility is unlikely due to the high cost required 59

for sufficient photovoltaic panels and battery storage to be 100% 60

independent, and the advantages of an interconnected grid that can 61

balance customers’ generation with demand and enable customer- 62

producers to sell excess electric energy56. Thus, it is possible that 63

energy storage could provide a solution to the disruption of utility 64

business models with rising use of distributed generation57. Future 65

work should investigate the potential for energy storage to benefit 66

utilities in this way. 67

Our findings on the emissions impact of adding energy storage 68

to Texas households with existing photovoltaic panels indicate that 69

it would increase overall electricity system CO2, SO2 and NOx 70

emissions due to time-shifting of electric demand and the additional 71

electric energy required to cover storage system inefficiencies. 72

Changing the local electricity generation mix would alter the 73

emissions impact of home energy storage, but it is unlikely that 74

storage could decrease emissions unless it directly enables new 75

installation of non-emitting generators or enables production from 76

non-emitting sources that otherwise would have been curtailed. 77

This finding aligns with previous work that has examined the 78

system impacts of bulk electricity storage used for price arbitrage 79

in wholesale electricity markets58. 80

While rooftop photovoltaic systems deployed on the US grid to- 81

day do not require home energy storage, there are limited instances 82

where storage might enable wider use of photovoltaic panels. For 83

example, inOctober 2015 the PublicUtilities Commission ofHawaii 84

ended its net-energy metering program due to concerns about the 85

impact of growing use of rooftop solar panels on electric grid opera- 86

tions and utility rates59. The net-metering tariff was replaced with a 87

‘self-supply’ tariff for customers that use all of their produced solar 88

energy on site, and a ‘grid-supply’ tariff that pays a price lower than 89

the retail electric price for energy sent to the grid from solar panels59. 90

There is no limit to the number of customers that can install solar 91

panels under the self-supply tariff, but installations under the grid- 92

supply tariff are capped59. Thus, for the case of Hawaii, home storage 93

could enable more customers to connect solar panels under the self- 94

supply tariff, and indirectly decrease electricity system emissions. 95

However, it is worth noting that the rule change in Hawaii was 96

driven by both technical issues associated with integrating solar 97

panels and economic solvency issues related to net-metering tariffs. 98

NATURE ENERGY | www.nature.com/natureenergy 5

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ARTICLES NATURE ENERGY

70 75 80 85 90 95 100

0

200

400

600

Battery roundtrip efficiency (%)

Chan

ge in

CO

2(k

g pe

r hou

seho

ld−y

ear)

‘Target zero’ operation

70 75 80 85 90 95 100

Battery roundtrip efficiency (%)

‘Minimize power’ operation

0.0

0.2

0.4

0.6

Chan

ge in

SO

2, N

Ox

(kg

per h

ouse

hold

−yea

r)

CO2

SO2

NOx

CO2

SO2

NOx

Figure 5 | Sensitivity of emissions impacts to storage roundtrip e�ciency. We test the sensitivity of the CO2, SO2 and NOx emissions impact of homeenergy storage versus its roundtrip e�ciency by repeating our analysis for values of roundtrip energy e�ciency ηrt ranging from 70–100%. The solid linesare the mean emissions impacts observed across the 99-household sample, and the shaded areas are 95% confidence intervals calculated for thecorresponding population means.

Further, Hawaii is a unique case where high electricity prices, excep-1

tional solar resources, and a progressive energy policy make rooftop2

solar very attractive to consumers, yet the islands’ small grid and3

isolation from the mainland exacerbate integration challenges9.

Q.4

4

In the future, regulators, policymakers and other decision-5

makers should seek to evaluate the impacts of energy storage6

separately from the impacts of photovoltaic panels or other7

renewable energy sources. Because energy storage is an energy8

consumer and not a producer, it would most likely not reduce9

emissions or primary energy consumption unless it directly enables10

intermittent renewable energy. It would be useful for future research11

to assess the cost-emissions trade-off associated with using energy12

storage to integrate intermittent renewable resources versus other13

sources of flexibility such as dispatchable generation, transformer14

tap-change operations, advanced inverters, controllable loads, and15

other sources of power and voltage control.16

Methods17

Summary. This paper approximates the impacts of home energy storage using a18

sequence of five steps. First, electricity use and solar production data for a19

particular household are downloaded from Pecan Street’s Dataport website26.20

Second, the data are entered into a program that plans the operation of home21

energy storage based on the observed level of electric load and solar generation.22

Third, the revealed charging and discharging behaviour of home energy storage is23

used to calculate its impact on electrical power demand and energy consumption.24

Fourth, electricity tariffs from Texas, Hawaii and California are used to calculate25

the economic impact of home energy storage. Fifth, a data set of marginal26

emissions factors for the Texas electricity system is used to approximate the27

emissions impact of adding home energy storage51,52. The following subsections28

explain the methods associated with each of these steps in detail.29

Electricity use and production data. To show how energy storage could respond30

to a household’s electricity consumption and solar production to minimize31

interaction with the utility, we use electricity data collected by Pecan Street from32

residential electricity customers26,60. Each of the customers provides their data to33

Pecan Street on a voluntary basis. Many of the participants in the data collection34

program are knowledgable about energy and take active steps to reduce their35

energy use and environmental impact. Previous analysis of the study participants36

revealed a negative correlation between the score obtained on an energy37

knowledge quiz and the homeowner’s overall electricity consumption60. We38

believe the demographics of the participants resemble the demographics of likely39

home energy storage early adopters.40

Electricity use and production data are downloaded from Pecan Street’s41

Dataport website26. The data track electricity use and production in kilowatts at a42

one-minute time resolution, allowing us to examine how energy storage could43

respond to short-duration fluctuations in electricity demand and solar44

production. The data collected from each household are screened according to45

the following algorithm. First, the number of minutes over the year for which no46

recorded value of electricity use or solar generation exists is calculated for each47

household, and households with missing data points are excluded from the data48

set (38 households in total). Second, the number of minutes for which the49

recorded value of electricity use is equal to zero is calculated for each of the 50

households, and households with greater than 1,440min (one cumulative day 51

over the year) of electricity use equal to zero are excluded from the data set (22 52

households in total). Finally, we generate time series plots Q.5showing the minutely 53

level of electricity demand and solar generation measured from each of the 54

remaining households over 2014. We examine each of these plots visually, and 55

eliminate an additional 13 households from the data set on the basis of 56

anomalous solar generation or electricity consumption behaviour. 57

After the screening process is complete, the verified data set contains 58

residential electricity use and solar generation data for 99 households, a sufficient 59

sample to examine the expected impact of home energy storage. The data set is 60

organized into data files that can be queried and then entered into the 61

optimization program that is used to plan the operation of home battery energy 62

storage. Summary statistics for each of the 99 homes from which data were 63

collected for this study are provided in Supplementary Table 1. 64

Energy storage operational management. We model home energy storage 65

operation using two different methods: a ‘target zero’ approach where the battery 66

does not have information about the future level of solar generation or electricity 67

demand and seeks to reduce the power flows between the household and the grid 68

to zero without regard for how its present actions might affect future reliance on 69

the utility; and a ‘minimize power’ approach where the battery system has perfect 70

information about the future level of electricity demand and solar generation over 71

the day, and plans its operation to minimize the magnitude of power flows 72

between the home and the utility grid over the entire day. The details of each of 73

these operational models are provided in the following sections. 74

‘Target zero’ operational model. The ‘target zero’ model for operational 75

management of home energy storage considers variables defined over three sets: 76

H : {1,2, . . . , 99}, representing the numerical identifier of the household where the 77

energy storage system is operating; d : {1,2, . . . , 365}, representing the day of the 78

year; and m: {1,2, . . . , 1440}, representing the minute of the day. 79

The model considers an energy storage device with a rated power P rated, a 80

rated energy capacity Erated, and a roundtrip efficiency ηrt. P rated and Erated are 81

selected to correspond to the specifications announced for Tesla’s ‘Powerwall’ 82

home battery system for daily cycle applications: P rated = 3.3 kW, Erated = 7 kWh 83

(ref. 3). Q.6We assume a roundtrip a.c.–a.c. efficiency ηrt = 85% based on the 92% 84

d.c.–d.c. efficiency announced for the Powerwall and an assumed d.c.–a.c. 85

converter efficiency of 96%3,49,61,62. 86

The model steps from one minute of the year to the next, and uses the 87

following algorithm to decide the level of battery power. First, the target battery 88

power for household H during the day of the year d and the minute of the day m 89

is calculated as the instantaneous net power demand of the household during the 90

current minute, which is equal to the measured level of electricity use 91

Puse(H , d , m) minus the measured level of electricity generation Pgen(H , d , m) as 92

given in equation (1). The parameters Puse(H , d , m) and Pgen(H , d , m) come 93

from the home electricity data set discussed in the previous section. Second, the 94

target power is compared with the rated power of the battery system. If the target 95

power exceeds the rated power, then the magnitude of the target power is 96

reduced to the rated power level. Third, the level of stored energy at the end of 97

the current minute as a result of the applied target power is calculated. If the level 98

of stored energy violates the battery system’s limits, then the battery power during 99

the minute is set equal to zero. Otherwise, the battery power during the minute is 100

set equal to the target power level. 101

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NATURE ENERGY ARTICLESThis control logic is defined in equation (2). Positive values of Pbat(H , d , m)1

indicate discharging while negative values indicate charging. The relationship2

between the applied battery power and the level of stored energy during minute3

m is defined by equations (3)–(6). Equation (3) estimates the instantaneous4

amount of stored energy as a function of the initial energy stored at the5

beginning of the day, Ebat,i(H , d), and the change in the amount of energy stored6

during each prior minute of the day, 1Ebat(H , d , m). Equation (4) defines7

Ebat,i(H , d). The initial amount of energy stored at the beginning of the first day8

of the year is set equal to one half the system’s rated energy capacity. For9

subsequent days, it is set equal to the amount of energy stored at the end of the10

prior day. Equation (5) defines 1Ebat(H , d , m) as a function of the amount of11

power applied to the battery. The constant 1t represents the duration of the12

one-minute time step, and is set equal to (1/60) to integrate the kilowatt power13

flow to/from the battery into kilowatt hours of energy. The constant κ represents14

the energy losses during charging and discharging, and is defined in equation (6).15

When the battery is discharging, more energy is extracted from the storage device16

than is delivered to the grid, so κ is equal to 1/√η rt and greater than 1. When17

the battery is charging, less energy enters the storage device than is extracted18

from the grid, so κ is equal to √η rt and less than 1. Put together, the values19

defined for κ in equation (6) set the net roundtrip energy storage efficiency to be20

equal to ηrt and equally impose energy losses on charging and discharging.21

Previous work has used a similar formulation to model storage energy losses58,63.22

Ptarget(H ,d ,m)=Puse(H ,d ,m)−Pgen(H ,d ,m) (1)23

Pbat(H ,d ,m)24

=

min(Ptarget(H ,d ,m),Prated) if Ptarget(H ,d ,m)>0 (net consumer)

and 0≤Ebat(H ,d ,m)max(Ptarget(H ,d ,m),−Prated) if Ptarget(H ,d ,m)<0 (net producer)

and Ebat(H ,d ,m)≤Erated

0 Otherwise

(2)25

Ebat(H ,d ,m)=Ebat,i(H ,d)+m∑µ=1

1Ebat(H ,d ,µ) (3)26

Ebat,i(H ,d)={Erated/2 if d=1Ebat(H ,d−1,m=1,440) if d 6=1 (4)27

1Ebat(H ,d ,m)=−Pbat(H ,d ,m)κ1t (5)28

κ=

{1/√ηrt if Pbat(H ,d ,m)>0 (discharging)√ηrt if Pbat(H ,d ,m)<0 (charging) (6)29

30

The control logic is applied using a for loop, which steps from one minute to31

the next and assigns the battery power during minute m according to32

equation (2). Sample input parameters and results from the operational model are33

provided in Supplementary Figs 2–5.34

‘Minimize power’ operational model. Like the ‘target zero’ model, the ‘minimize35

power’ model considers variables defined over three sets: H : {1,2, . . . , 99},36

representing the numerical identifier of the household where the energy storage37

system is operating; d : {1,2, . . . , 365}, representing the day of the year; and m: {1,2,38

. . . , 1440}, representing the minute of the day. A nonlinear optimization program39

is used to plan the operation of home energy storage.40

The decision variable for the optimization program is the level of battery41

power Pbat(H , d , m) during each minute m of operating day d for household H ,42

with negative values of Pbat(H , d , m) indicating charging and positive values43

indicating discharging.44

The objective of the optimization program is to minimize the magnitude of45

power flows between a household and the grid by scheduling the battery charging46

and discharging power over the day. Thus, we define the objective function to be47

minimized as the sum of the squares of the net power flow between household H48

and the grid during each minute m of day d , as given in equation (7). The net49

power flow during each minute is equal to the measured level of electricity use50

Puse(H , d , m), minus the measured level of electricity generation Pgen(H , d , m),51

minus the battery power decision variable Pbat(H , d , m). The optimization52

program is executed separately for each household H and each day d to minimize53

each household’s interaction with the utility during each day of the year.54

fObj(H ,d)=1,440∑m=1

(Puse(H ,d ,m)−Pgen(H ,d ,m)−Pbat(H ,d ,m))2 (7)55

56An important constraint on the battery system’s operation is that the 57

instantaneous amount of energy stored in the battery system must be within its 58

rated energy storage capacity, Erated. We impose an equality constraint within the 59

optimization program to define a dependent variable Ebat(H , d , m), which 60

represents the amount of energy stored in the battery at the end of minute m. 61

The relationship between the decision variable Pbat(H , d , m) and the dependent 62

variable Ebat(H , d , m) is defined as given in equations (3)–(6) discussed in the 63

previous section. As equation (6) has a conditional definition based on the sign of 64

the decision variable Pbat(H , d , m), it must be defined within the optimization 65

program using either an integer variable or a smooth functional approximation of 66

the discontinuous conditional constraint so that the solver can traverse the 67

solution space. We approximate equation (6) using the smooth, continuous 68

hyperbolic tangent function given in equation (8). Supplementary Fig. 1 69

compares equation (6) and (8). 70

κ≈

(12

(1√ηrt+√ηrt

)−

12

(1√ηrt−√ηrt

)tanh(−50Pbat(H ,d ,m))

)(8) 71

72

Within the optimization program, the battery power Pbat(H , d , m) and the 73

amount of energy stored in the battery Ebat(H , d , m) are constrained according to 74

the technical limits of the energy storage system. The magnitude of the battery 75

power is constrained to be less than or equal to the rated power capacity P rated 76

according to equation (9). The amount of energy stored is constrained to be 77

greater than or equal to zero and less than or equal to the rated battery energy 78

capacity Erated according to equation (10). 79

−Prated≤Pbat(H ,d ,m)≤Prated (9) 80

0≤Ebat(H ,d ,m)≤Erated (10) 81

82

We implement the optimization using the General Algebraic Modeling 83

System (GAMS)64. Within GAMS, the interior point nonlinear optimization 84

solver is used65. 85

The values of the parameters Puse(H , d , m), Pgen(H , d , m), P rated, Erated and ηrt 86

are passed to GAMS using the R programming package gdxrrw66. The parameters 87

Puse(H , d , m) and Pgen(H , d , m) come from the data set discussed in the previous 88

section. The parameters P rated and Erated are selected to correspond to the 89

specifications announced for Tesla’s Powerwall home battery system for daily 90

cycle applications: P rated = 3.3 kW, Erated = 7 kWh. We assume a roundtrip a.c.–a.c. 91

efficiency ηrt = 85% based on the 92% d.c.–d.c. efficiency announced for the 92

Powerwall and an assumed d.c.–a.c. inverter efficiency of 96%3,49,61,62. 93

R is used to obtain and store the solution to the optimization program 94

computed by GAMS. Sample input parameters and results for the optimization 95

program are provided in Supplementary Figs 2–5. We solve the optimization 96

program over the set of all households H in parallel. For each household, the 97

optimization problem is solved for each of the 365 days of the year d in series. 98

Calculation of power demand and energy consumption impacts. Once the 99

charge–discharge pattern of home energy storage has been calculated for each 100

day of 2014 for each of the 99 households in our data set, we can calculate the 101

impact that home energy storage would have on electrical power demand and 102

annual energy consumption. 103

The aggregate power demand with no storage PNSgrid(d , m) is calculated by 104

summing the electricity use and solar generation measured from each household 105

H according to equation (11). Likewise, the aggregate power demand with 106

storage PSgrid(d , m) is calculated according to equation (12). The calculated values 107

of PNSgrid(d , m) and PS

grid(d , m) are illustrated in Fig. 2. 108

PNSgrid(d ,m)=

99∑H=1

Puse(H ,d ,m)−Pgen(H ,d ,m) (11) 109

PSgrid(d ,m)=

99∑H=1

Puse(H ,d ,m)−Pgen(H ,d ,m)−Pbat(H ,d ,m) (12) 110

111

As residential electricity customers are typically billed for their kilowatt hour 112

consumption, we calculate the impact that the addition of home energy storage 113

would have on annual energy consumption for each of the households in our 114

data set. The change in net energy consumption over the year for each household 115

1Econs(H ) from the addition of home energy storage is calculated by integrating 116

the flow of power in and out of the storage device according to equation (13), 117

where 1t is set equal to (1/60) to convert the kilowatt power flows in/out of the 118

battery during each minute m into kilowatt hour of energy. Note that a negative 119

sign is added to the summation because positive values of Pbat indicate 120

discharging and negative values indicate charging. 121

1Econs(H)=365∑d=1

1,440∑m=1

−Pbat(H ,d ,m)1t (13) 122

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ARTICLES NATURE ENERGY

1 Figure 3 illustrates the change in energy consumption from the addition of2

home energy storage for each of the 99 households in the data set. The mean3

additional energy consumption is calculated by taking the average of 1E(H ) over4

all H , and a 95% confidence interval for the mean is calculated using a Student’s5

t-test with 98◦ of freedom.6

Calculation of economic impacts. To assess the impact that adding energy7

storage would have on the annual cost of service under different electricity tariffs,8

we first calculate the monthly energy consumption from the grid and energy9

injection to the grid for each of the 99 households in our data set with and10

without energy storage added. Then, we create custom functions using the R11

programming package that calculate the annual cost of service as a function of12

monthly consumption and production for each of the 14 utility tariffs identified13

in Table 167. While some of the tariffs charge a fixed US cent per kilowatt hour14

rate for energy consumed and energy produced, most of the utility tariffs include15

volumetric tiered charges, seasonal peak charges, or other subtleties that would be16

difficult to compactly summarize here. We refer the reader to the utility tariffs17

cited in the references and identified in Table 127–48. We use the custom R18

functions to calculate the annual cost of service for each of the 99 households in19

our data set with and without energy storage, and then calculate the annual20

benefit from energy storage as the difference between the cost of service with no21

energy storage installed and the cost of service with energy storage installed. The22

annual benefit for each of the 99 households under each of the utility tariffs23

considered is illustrated in Supplementary Figs 14–27.24

Once the average annual benefit from the addition of energy storage25

is calculated for each one of the utility tariffs considered and for both storage26

operational modes considered, we calculate the present value of the energy storage27

system assuming a ten-year lifetime, a 10% discount rate, and a 2.5% inflation28

rate3,68. These assumptions result in a present worth factor of 7.17, as given29

in equation (14). We multiply this present worth factor by each average annual30

benefit in Table 1 and then divide by the base case energy capacity Erated = 7 kWh31

to obtain the present value in US dollars per kilowatt hour for each utility tariff.32

PWfactor=

10∑y=1

(1+0.025)y−0.5

(1+0.10)y−0.5=7.17 (14)33

34

Marginal emissions data and estimation of emissions impacts. To calculate the35

emissions impact of adding home energy storage to households with existing36

solar panels, it is important to consider which generating units would respond to37

a change in electricity demand at the particular times when energy storage38

charges and discharges, because those generators might have different emissions.39

Electricity generators are scheduled by the grid operator according to their40

marginal operating cost, with the least costly generators dispatched first to41

minimize overall production costs. As a rule of thumb, wind, solar, hydroelectric42

and nuclear generation are dispatched first, followed by coal, and then natural gas43

generation. The precise order that generators are dispatched depends on a44

number of factors, such as their individual efficiency, fuel price, maintenance45

requirements, electricity transmission constraints, and other factors.46

To estimate the emissions associated with the marginal change in electricity47

demand caused by home energy storage, we use marginal emissions factors48

calculated for the Texas electricity system from US Environmental Protection49

Agency Continuous Emissions Monitoring System (CEMS) data51,52. These data50

estimate the change in CO2, SO2 and NOx emissions associated with a change in51

electricity demand at 5% quantiles of fossil generation online. These data show52

that when the total fossil generation online is at its minimum, the marginal CO253

and SO2 rates are at their maximum because more of the generators responding54

to a marginal change in electricity generation are coal steam units. Likewise,55

when the total fossil generation online is at its maximum, the marginal NOx rate56

is at its maximum because more of the generators responding to a marginal57

change in electricity demand are natural gas combustion turbines. The data are58

available online from the Carnegie Mellon Center for Climate and Energy59

Decision Making, and provided in Supplementary Fig. 2852. We estimate hourly60

marginal emissions factors by comparing the recorded hourly level of fossil61

generation over 2014 in Texas to the marginal emission factors calculated for62

various levels of fossil generation and interpolating linearly. The hourly marginal63

emissions factors are illustrated in Supplementary Figs 29–31.64

Once hourly marginal emissions factors for CO2, SO2 and NOx have been65

estimated, we calculate the annual emissions impact of adding home energy66

storage to households with existing solar panels according to equations (15)–(17),67

where MEF(h) is the marginal emissions factor in kilograms per kilowatt hour at68

hour h, Pbat(H , d , m) is the battery power for household H on day d at minute m69

in the corresponding hour h, and 1t is set equal to (1/60) to convert the kilowatt70

power flow in and out of the battery system into kilowatt hours.71

1CO2(H)=365∑d=1

24∑h=1

∑m∈h

−Pbat(H ,d ,m)1tMEFCO2 (h) (15)72

731SO2(H)=

365∑d=1

24∑h=1

∑m∈h

−Pbat(H ,d ,m)1tMEFSO2 (h) (16) 74

1NOx(H)=365∑d=1

24∑h=1

∑m∈h

−Pbat(H ,d ,m)1tMEFNOx (h) (17) 75

76

The result of equations (15)–(17) is an estimate of the annual change in CO2, 77

SO2 and NOx emissions in kilograms caused by the addition of home energy 78

storage. Note that no emissions credit is given for grid energy consumption offset 79

by the solar panels because our objective is to analyse the impact of adding 80

energy storage to a household with existing solar panels. The emissions impact of 81

home energy storage for each household in our sample is shown in Fig. 4. The 82

mean emissions impact is calculated by taking the average of the 1CO2(H ), 83

1SO2(H ) and 1NOx(H ) over each of the 99 households in our sample H . We 84

calculate a 95% confidence interval on the population mean using a Student’s 85

t-test with 98◦ of freedom. 86

Data availability. To calculate the results presented in this paper, we draw on the 87

database of household electricity use and production available through Pecan 88

Street’s Dataport website26. Supplementary Table 1 provides the unique data 89

identifiers and summary statistics for each of the 99 households considered in 90

this study. The marginal emissions factors data used to calculate the emissions 91

impacts presented in Fig. 4 are available online from the Carnegie Mellon Center 92

for Climate and Energy Decision Making51,52. Additionally, the US Environmental 93

Protection Agency Continuous Emissions Monitoring System (CEMS) data 94

originally used to calculate marginal emissions factors are available online 95

through the Air Markets Program Data website69. Any intermediate data not 96

available from the sources described above, and not included in this article 97

or its Supplementary Information, are available from the authors 98

on request. 99

Received 8 March 2016; accepted 3 January 2017; 100

published XXMonth XXXX 101

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8 NATURE ENERGY | www.nature.com/natureenergy

robertfares
Comment on Text
This is a government program, not a brain, computer, etc. program, so it would be programme according to Nature Energy style. However, the proper title of the program is "Air Markets Program Data," not "Air Markets Programme Data," so I think it is best to keep it as is.
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Acknowledgements 149

This work was sponsored by Pecan Street, the Electric Reliability Council of Texas 150

(ERCOT), and the University of Texas Energy Institute. Special thanks to R. Baldick for 151his questions, which helped shape this work. 152

NATURE ENERGY | www.nature.com/natureenergy 9

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ARTICLES NATURE ENERGY

Author contributions1

R.L.F. identified the research question, curated the data used, designed the research2methods, analysed the numerical results, and prepared the manuscript. M.E.W.3contributed to identifying the research question, interpreted the results, prepared the4manuscript, and provided institutional and material support for the research.5

Additional information6

Supplementary information is available for this paper.7

Reprints and permissions information is available at www.nature.com/reprints.8

Correspondence and requests for materials should be addressed to R.L.F.9

How to cite this article: Fares, R. L. & Webber, M. E. The impacts of storing solar energy 10in the home to reduce reliance on the utility. Nat. Energy 2, 17001 (2017). 11

Competing interests 12

This work was sponsored in part by the University of Texas Energy Institute, which has a 13number of internal and external funding sources. External funding sources include oil 14and gas producers, investor- and publicly owned electric utilities, and environmental 15non-profits that might be perceived to influence the results and/or discussion reported in 16this paper. A complete list of Energy Institute sponsors is available online 17(http://energy.utexas.edu/mission/sponsors-financial-support). Only the authors were 18

directly involved with developing the manuscript. 19

10 NATURE ENERGY | www.nature.com/natureenergy

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Queries for NPG paper nenergy20171

Page 1Query 1:According to style, author names (and associated dates) should beavoided in the text unless the contribution of an author (or thedate) must be emphasized. Could ‘McKenna et al ’s 2013 study,which’ be changed to ‘a study that’ or ‘a 2013 study that’ here?(Note, if the name must be retained, the text should be amended toavoid the possessive apostrophe after ‘et al .’.)

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Page 4Query 3:Please amend the text to specify where the sensitivity analysis canbe found in the Supplementary Information.

Page 6Query 4:Panel letters a and b removed from figure 5, as these are notmentioned in the caption or the text. OK?

Query 5:Would ‘minutely’ be better as, for example, ‘per minute’ or ‘minuteby minute’?

Query 6:Please note that reference numbers are formatted according to stylein the text, so that any reference numbers following a symbol oracronym are given as ‘ref. XX’ on the line, whereas all otherreference numbers are given as superscripts.

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Query 9:Please provide publisher for refs 10, 13, 16, 20, 61 and 66.

Page 9Query 10:The URLs in refs 53 and 62 seem to generate errors; please check.

robertfares
Sticky Note
'a 2013 study that' is acceptable. I have marked a replacement at the relevant place in the text.