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Implications of Rate Design for the Customer Economics of Behind-the-Meter Storage

Implications of Rate Design for the Customer Economics of Behind-the-Meter Storage

Full Title: Implications of Rate Design for the Customer Economics of Behind-the-Meter Storage
Author(s): Naïm Darghouth, Galen Barbose, Andrew Mills
Publisher(s): Lawrence Berkeley National Laboratory
Publication Date: August 22, 2019
Full Text: Download Resource
Description (excerpt):

This analysis explores how the details of retail electricity rate design can impact customer bill savings from behind-the-meter (BTM) storage.

Scope
• Focus is on the customer-economics
– Follow-on project will address alignment between customer-economics and utility value
• Addresses just one aspect of the customer-economics: utility bill savings (demand and energy charges)
– Not considered here are other potential value/revenue streams for BTM storage owners (e.g., participation in wholesale markets, customer reliability and resilience benefits, voltage support, T&D deferral, etc.), though some of those are “implicit” in retail rates
– We also do not address storage costs

Approach: Compute/compare utility bill savings from BTM storage across a range of rate structures and
load shapes

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