Batteries are everywhere. We use millions of them in our smartphones, laptops and EVs. Since batteries have been around for decades, most people have a basic understanding that they store and release energy. But not everyone knows that batteries are powering other areas of our lives and even shaping our society. Enter residential and commercial batteries — the inevitable renewable energy technology that will redefine our future grid. Storage is not just transformative but the linchpin for achieving a sustainable future and a technology that we must continue to advocate for and invest in.
Current state of the grid
In order to fully understand how batteries will shape our grid over the next 10 years, we must first contextualize the current state of the grid and its challenges. Grid infrastructure is aging and our above-ground poles and wires are susceptible to extreme weather events. Grid capacity is strained as demand can surpass supply, leading to congestion and blackouts. Our centralized energy generation model makes for inefficient transmission and distribution (T&D), having to step up and down voltage and transport energy over long distances. It’s also challenging to integrate renewables into the grid due to intermittency when the sun stops shining and the wind stops blowing. In short, our grid must evolve. Without batteries to address these pitfalls, the grid will remain inadequate.
Energy storage is the game changer
Batteries are the answer to the grid’s challenges. The ability to store energy makes society less vulnerable to blackouts and extreme weather events, and they firm up variability in solar and wind generation. While storage deployments grew 68% from 2021 to 2022, the proliferation of storage at the scale needed to truly transform our grid hasn’t happened yet. As solar accounts for only 3.3% of U.S. generation, and storage accompanies solar only 10% of the time, we have yet to hit meaningful levels of penetration. However, the benefits from batteries are already proven. Let’s examine how storage is poised to catalyze the grid of tomorrow.
Key storage benefits that will transform our grid
The energy storage revolution has just begun, but widespread adoption is inevitable and predicted to grow 15-fold by 2030. As storage is increasingly deployed at scale, these are the benefits that will accelerate our transition to a clean energy future:
Environmental benefits
- Integration of renewable energy – Renewables will account for 80% of new generation capacity by 2030. With so much renewable generation coming online, batteries are needed to mitigate against the variability of solar and wind by storing excess energy during periods of high generation and releasing it during periods of high demand. By enabling renewables, batteries promote a cleaner energy mix, reduce our reliance on fossil fuels and lower greenhouse gas emissions — all critical components for a sustainable grid.
- Grid stabilization – Batteries provide essential grid services that reduce volatility and help it run more reliably. This includes frequency regulation, voltage support and rapid response to fluctuations in energy supply and demand.
- Peak load management – Storage’s ability to discharge during peak demand eases grid congestion and reduces our reliance on polluting fossil fuel-run peaker plants. By managing peak loads, energy storage promotes cleaner air and reduces environmental harm.
Economic benefits
- Infrastructure cost savings – Batteries offer a unique non-wires alternative to traditional infrastructure investments. They can help avoid outage costs, reduce line losses, optimize power fluctuations and minimize the need for capacity upgrades. One report estimates that storage could save Texas $344 million per year by deferring T&D costs.
- Energy bill savings – For many households and businesses, energy storage can lead to significant cost savings by enabling load shifting and peak demand management. For example, in California electric bill savings are two-times higher with a battery vs. solar alone.
- Revenue generation – Batteries create new revenue streams by actively participating in energy markets and ancillary grid services, like demand response programs. The ability to monetize batteries improves return on investment, making them more affordable.
Energy justice benefits
- Energy access – Low-income households have three-times more energy cost burden, and 39% of people living close to power plants are people of color, leading to disproportionate financial and health impacts. Batteries reduce the need for harmful power plants, create energy savings, and help bridge the accessibility gap.
- Energy resilience – Minority populations are four-times more likely to suffer blackouts. By providing backup power during outages and emergencies, batteries can protect underserved and vulnerable populations. At scale, batteries will ensure our future grid is resilient for all.
Macro-level tailwinds
In addition to the benefits above, there are three key macro-level trends that will accelerate the deployment of energy storage and thrust us closer to the grid of tomorrow. First, favorable economics will fuel the energy storage boom, as costs have already plummeted 85% from 2010 to 2018 and will continue to fall. Second, the shift from a centralized to a decentralized model where energy generation occurs behind the meter and houses consume the power they produce will increase the need for storage. Last, technological advancements, like longer duration systems that can discharge for 10 to 100 hours, will expand the boundaries of what is possible and the impact batteries will have.
Imagining the grid of tomorrow
After 10 years of realizing these benefits and macro-level tailwinds driving widespread adoption of storage, let’s contemplate what the grid of the future looks like. Imagine houses with combined solar and storage, a battery performing energy arbitrage and time-of-use shifting, and thousands saved each year from reduced demand charges and selling excess energy back to the grid. Picture a stable decentralized grid where blackouts are a relic of the past and batteries have reduced our dependence on polluting fossil fuels, backup diesel generators and foreign oil. Envision every state having storage-friendly policies, programs and incentives meaning everyone — including previously marginalized groups — will have equal access to clean, affordable, and reliable energy.
Materializing the grid of tomorrow
To actually materialize the sustainable future imagined above, we must continue to invest in and advocate for energy storage at local, state and federal levels. We need concerted collaboration and commitment from all stakeholders — including homeowners, investors, policymakers and utilities — to collectively drive progress toward transformative change.
So if you’re a homeowner, install solar and storage. If you’re an investor, deploy capital for storage companies. If you’re a policymaker, advocate for storage incentives in your jurisdiction. If you’re a utility, implement storage-friendly programs. Energy storage is the master key, and without it, the door to a sustainable energy future remains locked. We all have a part to play in using that key to unlock the grid of tomorrow.
Abigail has worked in cleantech for almost 10 years. Her professional experience spans both hardware and software and renewable energy technologies like solar, storage, and grid services. Her broad range of skills and expertise gives her a unique and holistic view on renewables. She holds a Bachelor of Science degree in Environmental Studies from University of Oregon and a professional certificate from Stanford University in Energy Innovation and Emerging Technologies. Abigail has served as a Board Member for the non-profit organization Women in Cleantech & Sustainability, is a Climate Reality Project member, has a North American Board of Certified Energy Practitioners PVA certification, has served as a judge for National Renewable Energy Laboratories grant submissions, and is a 2023 Clean Energy Leadership Institute Fellow.
