Cost saving opportunities with storage and demand management.
Levelised cost of energy (LCOE) analysis is the best way to bench mark the cost of energy generated by a PV asset. But how do we translate this cost into value? The value of self generation is highly sensitive to grid supply tariffs structures, feed in tariffs and one’s ability to exploit this economic framework. The two emerging enablers in this space are storage and demand management.
With variable tariff structures and unpredictable solar generation, energy consumption is a constant tradeoff between lifestyle and economics. Time of use tariffs are a means to influence human behavior such that demand is less variable. Most of us may be willing to make slight changes in behavior to lower the cost of our power bills, but there comes a point where lifestyle becomes a priority over the bottom line. The emergence of affordable, domestic storage and demand management solutions facilitates independence from TOU tariffs and leverages your solar investment by maximising self consumption.
Comparable to trading the stock market, one’s relationship with their energy retailer is a game of buying and selling when the price is right. While a feed in tariff may incentivise selling back to the grid, a TOU tariff may encourage you to shift your loads and store excess solar generation. We’ll look at a few different scenarios and identify some cost saving opportunities.
3 key takeaways from this presentation:
1. What is the true value of self consumption?
2. Storage and demand management are two levers for unlocking greater value from solar
3. We will look at scenarios and identify ways of translating LCOE into value.