Utility ownership of the inverter and battery makes customer-owned solar cost-effective for both the customer and the electric utilities in a way that benefits both parties. Utility ownership of the inverter and battery makes customer-owned solar cost-effective for both the customer and the electric utilities in a way that benefits both parties.
- PROBLEM – Under traditional net metering, electric utilities lose money on every solar installation. Net metering also makes it difficult for customers to power their entire home during an outage.
- SOLUTION – Customers install the solar modules down to a DC plug, then the utility handles the rest.
HOW IT WORKS
- Customers only install the solar array and are paid for 100% of their generation.
- Utility installs the battery for free and in exchange, gets the power when they need it
- Customers get emergency power when they need it.
- Connection is on the utility side of the meter so no wiring changes are necessary.
- Dramatically lowers installation costs. No permitting fees, interconnection hassles; it’s plug-and-play all the way!
WHY THIS SOLUTION WILL BE SUCCESSFUL.
As you will see, simply moving the solar power generation to the utility’s side of the meter can lower the cost of solar power systems for everyone, meet all of the customer’s needs, while also providing a positive economic business model for electric utilities. With the ChargeStar Utility Owned Battery and Inverter, utilities will now be motivated to encourage widespread adoption of customer-owned solar generation on a massive scale across the United States.
The only way to provide back-up power to the home without installing a critical load sub-panel is to go through the customer’s existing utility meter. In the U.S., electric utilities or their contractors are the only ones that are authorized to perform work on the utility’s side of the meter. This is one of the reasons why it makes sense for the electric utilities to own and operate the inverter.
Other reasons for utility ownership of the battery and inverter include:
- Uniform control and communication standards are easier to achieve when there is a single owner (the utility).
- Utilities can set their own interconnection and safety standards without forcing the customers to sign lengthy interconnection agreements.
- Electric utilities are typically responsible for inspecting their own power generation equipment, so permitting and inspection costs are reduced because only the DC portion of the solar array down to the DC plug needs to be get inspected by the local code officials.
- Due to the plug-and-play design of the utility-owned battery and inverter, permitting costs will eventually be eliminated once the entire solar module and DC plug system receive a UL or similar rating, and can be plugged together like holiday lights.
- Utilities can bulk purchase equipment to achieve economies of scale to drive down costs.
- Utilities are also in it for the long term and generally have purchasing practices to buy quality products that provide the lowest life-cycle cost, not simply the lowest first cost.
- Investor-owned electric utilities have an added incentive for purchasing and owning the inverter and battery because they are entitled to a rate of return for all approved generating asset capital investments.
- Public utilities will want to adopt this system because it provides the highest form of public power. Because the solar generated power is not used for self-consumption, it is the truest form of public power; power generated by the public for the public. It also does this in a way that provides a positive net revenue for the electric utility.
The battery, DC-to-AC inverter, DC socket, wiring, structural frame and weatherproof enclosure are manufactured, assembled and installed as a single unit. A majority of this past year was spent building this working prototype, called the ProtoStar 10,000. This working prototype proved that the concept of the utility-owned inverter will work as intended and can be used to provide back-up power to the customer and utility. It also reduces the time it takes to interconnect a customer’s solar array to the grid and provide emergency power to a home in a matter of minutes, not hours.
ADVANTAGES
- Simple & fast installation!
- System is not net metered, so utilities have an incentive to purchase 100% of the customer’s solar generation.
- Economies of scale allow utilities to bulk purchase equipment based on standardize design and installation.
- Utility’s have access to low cost of capital to own and install this generation and distribution asset.
- Customers get back-up emergency power for their home or business from their solar array at no cost.
DISADVANTAGES
- Commercially available transfer switches need to be made so they are more visually attractive.
- Internal loads must be reduced before transferring loads to the back-up battery because most existing residential battery and inverter systems are not large enough to provide 100% of the peak power needs of a typical 200-amp residential electric service.