Lawrence Berkeley National Laboratory

Compensation structures for residential solar PV are evolving toward a model that incentivizes the use of battery storage to maximize solar self-consumption. Using metered data from 1,800 residential customers across six U.S. utilities, we show that batteries operated solely in this manner often provide no grid value, due to misalignment with market prices. Incentivizing customers to discharge storage in response to market prices, particularly on infrequent peak load days would greatly enhance storage dispatch value. However, doing so requires consideration of local distribution network impacts. We illustrate a net billing design that yields a storage dispatch value equal to 50-70% of its maximum potential market value, without materially degrading solar self-consumption levels or increasing local grid stress.