By Jon Doochin, CEO of Soligent. Originally posted on soligent.net and reposted with permission. That story can be found here.
Selling a $15,000 to $40,000 storage system add-on isn’t easy, but with the right approach you can build it into your solar sale and satisfy your homeowner at the same time. Homeowners tend to shy away from the addition of storage due to price, but they also miss the true value of what storage can do for their existing or soon-to-be purchased solar system and their long-term billing cycle. Though the need for energy storage can change geographically, the basic sales approach can work anywhere in the United States.
There are three key drivers of the value proposition to walk a homeowner through that supports and drives the decision to purchase storage: the economics, the security and the technology.
1. The Economics
The economics of storage-only does not always have a payback profile. That said, the economics of a solar + storage system does have a positive payback almost everywhere in the United States. Most homeowners would pay for a solution that gave peace of mind during blackouts, natural disasters or severe weather; so the ability to have an investment pay itself off is a great selling point for something that also offers security and resiliency while not always necessary for the rest of the solar system to work. A history of U.S. generator sales demonstrates payback is not always the most critical factor. There is little economic return to a prestigious automobile, swimming pool or even a fancy roof, but these are decisions that homeowners feel strongly about every day. That said, there is a payback with solar + storage.
2. The Security
Homeowners treasure having a safe space, independence and something that is theirs. Rolling blackouts, fires and utility rate increases put their security at risk. If a homeowner has medical needs, is aging or has young children, then consistent power can be very important. Buying energy storage is an opportunity to support the safety and resilience of homeowners. It is a reality that without the electrical utility, a home cannot fully function. Moreover, with families working from home more regularly now in the age of COVID-19, there is an economic argument to protect employment by assuring a family has consistent power to do their jobs. Storage offers independence, security, certainty and safety for the whole family.
3. The Technology
Buying a battery today is not the same as buying a battery 20 years ago. These relatively small units can power a homeowner’s critical needs with ease and safety. They have sophisticated capabilities that allow homeowners to be their own power supply and not depend on the utility. Solar without storage puts power back onto the electrical grid, but most solar does not give a homeowner access to their own solar production in a critical situation when they need it most. Storage changes that with a simple app-based interface that allows a homeowner to choose how and when to use their power – a choice solar does not routinely present.
The Pitch
I personally would want my energy advocate to walk me through the impact storage + solar would have on my life, so I know my options.
For example, I would appreciate the honest walk-through of why you would choose this option if you were me. “With this solar system, you will be saving $50,000 over the lifetime of the system. I would suggest that we add a battery to the solar system to ensure your home can access that power during outages. With changing weather patterns (fires, storms, hurricanes, etc.) and adverse weather events being at peak levels, not having to face weeks of power outages, keeping your family safe and happy while saving money on your power bill is why I advise my customers to go solar + storage. You will always have power even when all your neighbors are blacked out.”
This is just one example of how to start a dialog that opens a conversation around the economics, the security and safety that is presented in having storage. You can further use the above points to deep dive on partial vs. full backup solutions, incentives and timing, and why each leads to additional points of value for the homeowner.
The largest barrier to helping a customer make a critical buying decision is our mindset that comes from our understanding of the value proposition. We also need to know how to present the simplest path to sharing such. What is your path?
Daniel Courselle says
A complete fire rated roof with a permanent solar panel system is possible today when built-in at time of construction. This adds little more upfront cost and utility value, financed through a mortgage, for the life of the structure. Payback in dollars is hardly felt while the system earns its way, protects during emergencies and provides the comfort needs one desires, especially peace of mind. Think of yourself first then the grid the same way they think of their customers.
Mark Mortensen says
I’m not yet clear on the methods for valuing resilience for individual residential installations, but Clean Coalition is one resource for using this method for community microgrid projects. Perhaps there are parallels to be drawn. https://clean-coalition.org/news/vor123-webinar-aug-2020/
Jonathan Doochin says
Great comments all!
RAJESH SRIVASTAVA says
Ofcourse the overhead cost of batteries are more but once we look for security reasons,it is must.Sametime we can go for modular procurement way.We should suggest for procurement for the essential part of requirement first,it may fall about 20-30% of the total reqirement and further storage may be increased as per reqirement or when one have spare money.
Solarman says
There is technology now readily available to “create” an energy savings type ‘account’ or energy portfolio that can be expanded upon in small blocks over several years. Enphase Energy has their micro-inverters with fast shutdown capability on each panel, these newer micro-inverters can also be added to an existing solar PV array one panel and one micro-inverter at a time. Enphase has just introduced their own energy storage system in the Enphase Encharge storage system that can be added to an existing Enphase solar PV system. IF one makes the big leap to smart ESS, one can expect paying from $32K to $38K installed. These are considered top line modules and one gets for the price, a complete component installation in its own cabinet with batteries hybrid inverter/charger, BMS, HMI for programming and in some cases energy storage and control algorithms that can be programmed for the benefit of the owner, not to the benefit of the utility. By and large electric utilities are the “low hanging” fruit resolution to their revenue problems. By creating TOU rate spiking programs just after solar PV generation starts to trail off during the day, the utility can gain more from your excess energy generated and give you less credit for the daily overgeneration.
John Trombold says
“California has fallen into the PSPS as a ‘way’ to remediate wild fires (apparently not this time around). The unfortunate thing about the PSPS, it’s not just a rolling blackout for a couple of hours, it could be all night or for days. Suddenly folks see the (value) of solar PV and ESS, the ability to set one’s system up to island and keep critical electric circuits going during power outages could be the “thing” that allows one to throw a sprinkler on the roof of their home, have back up power to a booster or irrigation pump to run the system and flee a wild fire. This could be the difference between coming back to a home or a burned out lot.”
This point is very important right now. PGE apparently has some liability for the fire near Salem, OR, as it did in California last year. It seems likely that power companies will turn to rolling blackouts as a fire prevention measure when conditions are windy and dry. I am a consumer about to install storage with a newly installed solar system. There is no TOU billing where I live in Spokane, but I anticipate that it could be a part of future energy company policy, along with preventative blackout periods, given the scale of fires in the last few summers.
Green Ridge Solar says
I hate to say it, but here in Oregon, we have raging wildfires that have caused power outages across the state. Times like these make people realize the benefits of backup battery storage, and there is a large percentage of homeowners that will pay for the luxury of that security.
Jonathan Doochin says
Thanks @Solarman. These are all great points and your comments are spot on!
Lorraine Q says
A solar battery does, indeed, cost a sizeable chunk of money for most consumers. For those who are newly researching the possibility of adding a solar system to their property, it is often a very strong point of resistance and often not even quoted, and completely overlooked.
The points about the wildfires that Solarman mentions above are poignant and must be a sure selling point. However, comparing this now to the UK, where we are less frequented by storms (and never by wildfires) we tend to see a relatively low uptake. This is despite, as you rightly note in the article, the flippant spending of some people on less “useful” or truly “valuable” items, then a reluctance to spend on those which are functional yet highly valuable in the long-term.
As usual I suppose it comes own to price point, and whilst there is, or can be, a payback time for solar batteries, they just remain too pricey for many. As technology advances and we see prices lessen, I imagine that batteries will be at the forefront of the People’s energy revolution!
Solarman says
People buy into $50K vehicles all the time and never think about overall cost of ownership as opposed to $50K spent on a smart ESS and solar PV array installed on their homes or small businesses. I believe you’ll find most folks into the “bang for the buck” mindset and yet energy use and energy costs seem to slip between some cracks in the logic cycle. If one looks at simple grid tied systems, it seems very high for an ESS. IF one is at the point of installing solar PV AND ESS for a self consumption system, it can be an overall better bargain. Usually with the smart ESS, the package comes complete as a battery storage cabinet, with smart hybrid inverter and some kind of HMI to interface with the unit. Most of these ESS units can be fed directly by the solar PV array, so over generation during the “duck curve” portion of the day can be stored and used into the night time hours, where there is often a TOU rate spiking program in place.
California has fallen into the PSPS as a ‘way’ to remediate wild fires (apparently not this time around). The unfortunate thing about the PSPS, it’s not just a rolling blackout for a couple of hours, it could be all night or for days. Suddenly folks see the (value) of solar PV and ESS, the ability to set one’s system up to island and keep critical electric circuits going during power outages could be the “thing” that allows one to throw a sprinkler on the roof of their home, have back up power to a booster or irrigation pump to run the system and flee a wild fire. This could be the difference between coming back to a home or a burned out lot.
IF one buys that $50K vehicle and actually hangs onto it for 10 years, it will cost on average to own this vehicle $80K and counting. When one buys solar PV and smart ESS, the system will more than likely pay for itself in 15 years, keep that ‘vehicle’ for another 5 years out to 15 and it will have cost you around, $103K for the vehicle while the Solar PV and ESS are paid for by energy savings. Get a BEV and over build your solar PV array and you might see a payoff in 10 years maybe less on that solar PV/ESS system. Over the long term, (value) beats out ROI.