The market for energy storage continues to grow as a result of utility procurements, positive regulatory developments and public interest. Energy storage, efficiency, and demand response programs may have the ability to lower energy costs and reduce environmental impacts. Utility demand response programs allow electric system planners to balance supply and demand and ultimately reduce retail rates. Storage technology plays an important role in bringing reliability and stability to the grid as more flexible and responsive resources are used to offset the need for additional peaking generation.
Troutman Sanders understands the interplay of demand response programs with storage technology and renewable energy with storage. We have counseled the energy industry since the 1920’s and we continue to offer clients innovative solutions to integrate new technologies into the regulatory, economic, and political landscape of today’s energy market. We emphasize a full-service approach to storage matters, drawing on the extensive resources of lawyers from across the firm’s core practice areas, including renewable energy, real estate, environmental, project development and finance, corporate, tax, government relations, energy regulation and construction law.
Energy Storage and Solar
Drawing on our extensive experience in the solar energy market—having represented sponsors, financiers and utilities in hundreds of utility and distributed generation projects—we believe that the solar-plus-storage market is about to experience similar growth and interest as the solar market experienced in the last decade.
Ten percent of commercial solar customers will pair their installations with storage by 2018, according to a report published by GTM Research. As battery prices fall, the solar-plus-storage market could surpass $1 billion by 2018, according to the same report. The report further predicts the United States will install 318 cumulative MW of behind-the-meter solar-plus-storage capacity through 2018.
When paired with solar, energy storage becomes even more attractive because it may take advantage of a 30% federal investment tax credit in certain situations.
Troutman Sanders has also been at the forefront of innovative financing strategies involving investment tax credit monetization in both the solar distributed generation and utility space. We believe there are opportunities to leverage much of what has been done in the solar arena for storage technology.
Storage, like solar, has the potential to be used in distributed generation, residential and utility applications. And, as a result, has the potential to be scalable at the same rate as solar, with the same potential for cost reduction.