Residential Home Battery StorageCommercialization Insights

Chris MorisDirector of Advanced Products

September 17th, 2018

Growth From Solar + Storage

Source: Greentech Media

June 2017 McKinsey & Co.

article January 10th 2018

● Overall market capacity projected to grow 12x between 2017 and 2022● Mix shift towards Residential BTM deployments growing at over ~100% YoY● Solar penetration at >20% in Hawaii & overall USA at ~2% → long term growth coming● Volume largely fueled by California and Hawaii due to progressive structures, incentives,

and strong savings● Tailwinds from Puerto Rico and other climate stricken locations accelerate growth

3

Sunrun Brightbox: Residential solar+storage available in a growing number of markets

Markets

● Launched in 2016: California and Hawaii● In 2017: Arizona, Nevada, and New York● In 2018: Florida, Massachusetts, and Puerto Rico● 100% of Hawaii & PR, >20% of California Sales

Offering

● Customer receives benefit of backup power and hassle-free Time-of-Use bill management

● Options:○ Purchased Cash or Loan (12 and 20 yr)○ Leased/PPA in $0 down monthly form or

prepaid for lowest energy rate● Storage aligns best with a managed model for

O&M, programming, and Grid Services○ >90% of Sales are 20 year PPAs/Leases

1,000’s of customers booked at 10-30 kWh per home with rapidly accelerating adoption

Configurations & Capabilities

Components

● Electrical Panel - Supplies home with electricity via breakers

● Generation Meter - Can be used for Utility measurement of generation, e.g. “REC” meter

● Current Transformer - Measures home energy consumption

● Backup Panel - Selected backup circuits● Battery - High voltage lithium-ion pack

MM

CT

INV

BACKUP CIRCUITS

BATTERY

GRID

Typical High Voltage DC Configuration

HOME

CommunicationsAC conductorsDC conductors

Existing conditionSunrun sourcedSolarEdge sourcedLG Chem sourced

PANELS

Capabilities & Use Cases

Smart inverter controls the solar and battery based cloud connected programming:

● Time-Of-Use● Backup● Grid Services● Self-Supply

Time of Use: California & Arizona

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Solar charges the battery in the morning

Battery discharges during “peak” hours

Battery State of Charge

Peak Hours

Peace-of-Mind with Smart TOU + Battery Backup

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Brightbox with 1 Battery Brightbox with 2 Batteries

Can backup critical loads for typically 10+ hours

Example critical loads (25A max):● Refrigerator● Garage door● Lights, fans, electrical outlets● TVs, laptop, wireless router● Other lower power appliances

as needed

Can backup the whole home for typically 8-10 hours

Example whole home (60A max):● Critical loads

+ Air Conditioner as needed+ Oven/Stovetop as needed+ Electric hot water heating+ Pool pump

GOAL: Power the home until the sun comes back up to recharge the battery

Backup: All States

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Grid Services

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Virtual Power Plant: Neighborhood Run by the Sun

Telemetry

Dispatch

SEP 2.0, IEEE 2030.5, OpenADR, etc.

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Solar-Only: Off-Peak Exports

Energy generation delivered to the grid based on solar production

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Solar + Storage: TOU Management

Energy generation shifted on a fixed schedule to during Utility peak

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Solar + Storage: TOU & Grid Services

Control exports

Aggregate across homes to reduce

grid peak

Energy generation delivered precisely to offset Utility peaks with a dynamic signal

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Storage Policy Growth Enablers

Utility Rate Structures

+ Time-Of-Use: CA SDG&E $0.25/kWh → $0.48/kWh valuing storage for peaks

- Demand Charges: Not relatable to homeowners in aggregate, confusing to customers

- Net-FIT: Reduced compensation for exports is confusing vs TOU

Storage Incentives

+ CA SGIP: Early storage incentive valued at $500/kWh capacity decreasing over time

+ MA SMART: Performance based incentive equating to roughly 4c/kWh of value for throughput

Incentive Focus:

● Simplicity & transparency● Reasonable timelines● Customer friendly

administration

Access to Services Markets

+ CA Multi-Use Applications: “Resources interconnected in the customer domain may provide services in any domain”

+ NY REV: Establishing BTM as “qualified facilities”

+ Hawaii GSPA: Tariff based program for participating in grid services market

- Non-Export Limits: In some states prohibiting any participation

Goal: Send value signals so that storage is used to benefit the grid and all ratepayers, not just for home backup

Goal: Expedite the transition to sustainable renewable energy

Storage Technology Growth Enablers

Capabilities & Features PerformanceCost Reduction

Goal: Make storage relevant Goal: Lower the barrier to entry and increase the value creation for storage

Consumption Monitoring: Customer home energy insights and grid data

Whole Home Backup:Backup of any home load without choosing essentials

Safety Improvements:From alternative chemistries such as LFP

Reduce Packaging & Integration Overhead:Many components from different vendors become a single package

Solid State Technology:Transition off of chemical storage onto purely electrical storage

Li-Ion Maturity:Organic improvement in energy density from R&D driven by EV volume

Improved Degradation:● EOL capacity from

70% → 90%+● Lifetime extension

from 10 → 20 years

Improved Cycling Losses:Efficiency from 87% → 94%+

Consumer Facing UIs/UXs:Energy Apps for mobile and desktop in their infancy

Fleet Aggregation Capabilities and Products:Enable revenue from storage grid & ancillary services

Environmental Conditions:Extending temperature ranges from 45C → 55C+