CAI-NJ Jan. 2019 (w)

ENERGY COSTS... from page 35.

electrical energy for backup power at their homes or businesses. However, with the sharp increase in battery demand, the cost of energy storage has dropped precipitously over the past decade and at an accelerating rate. Similar to PV system, energy storage realizes a similar cost-decline curve with the trend beginning just a few years later. The cost reductions in the energy storage supply chain are beginning to have far reaching implications that are just the foundation of a para- digm shift across the broader energy landscape. For the first time, we’re now seeing large-scale wind and PV system plants paired with energy storage competing head to head with traditional fossil fuel-based utility gen- eration assets as reliable, dispatch- able power plants, often referred to as ‘baseload power supply’, including highly efficient natural gas combined cycle power plants, even with gas

Graphs courtesy CAI-NJ.

al complexes, multifamily apartments, corporate campuses, universities, etc. Companies like Tesla Energy, Sonnen batteries and LG have released resi- dential and commercial-oriented prod- ucts that offer a variety of services to the end-user. The most common application today is to provide backup power in the event of a grid outage, similar to an insurance policy. Historically, gas or diesel generators located outside of a building have served a similar ‘standby’ purpose. Energy storage represents a signif- icant opportunity for common-inter- est developments to source cheaper electricity with a PV system (both to

common areas and individual resi- dences), while also potentially offer- ing Members the option to have an energy storage system installed at their homes on a turn-key, worry-free basis. A storage system would be of particular value to 55+ communities and HOA’s located in outage-prone areas, such as communities, where an energy reliability home is prepared with a source of emergency power in the aftermath of a storm. From an alternative perspective, it is essential to be aware of regulatory and market developments around the country, given the increased ease of mobility today. Prospective buy- ers may be looking at a community

“Energy storage represents a significant opportunity for common-interest developments to source cheaper electricity with a PV system..”

prices hovering at historic lows. In addition to the growing utili- ty-scale storage market, battery stor- age systems are deployed at industri-

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