In the Wild: Commercial Purchase of PowerPack

[SageBrush]

A new Tesla Powerpack and solar installation shows the potential of the system for commercial projects

I gather the purchase was to take advantage of TOU arbitrage, presumably the early evening hours. I wonder how long it will take for the utility to decide that in fact those hours are not peak, and make the PP a poor investment. After all, the PP owners do not have a PPA with the utility.

 

[Ampster]

I wonder how long it will take for the utility to decide that in fact those hours are not peak, and make the PP a poor investment. After all, the PP owners do not have a PPA with the utility.

Are you suggesting that their supplier could change their TOU rate and leave all others the same? Not likely. It sounded like the savings was from incorporating solar and reducing demand charges.

 

[SageBrush]

Are you suggesting that their supplier could change their TOU rate and leave all others the same? Not likely. It sounded like the savings was from incorporating solar and reducing demand.

I didn't mean that the utility would change terms just for this one customer. The article says

Sprig Electric uses the battery packs to store electricity in order to reduce peak demand, then to charge them during low demand periods when a surplus of energy is available and the rates are low.

I gather off-peak is 12 cents a kWh
Peak is 42 cents a kWh

Installed PV is quite a bit less than 12 cents a kWh over the life of the system so this is not a case of utility sourced charging at night into the PP to be used by the customer during peak rate time unless the business is operating after the sunset. That is why I inferred that this is an arbitrage play -- good until the early evening rate is dropped. I'm most skeptical of that rate staying high, mostly because I expect the locals to catch on to the game and cool down their homes an hour before they leave work when the rates are low.

 

[Ampster]

It does look like an arbitrage play in addition to a demand charge reduction. Your scenario would be a welcome solution to the duck curve problem predicted for California as more solar is installed in the state. II think systems like these can also help solve the steep ramp up of demand in the afternoons as solar generation sunsets. No doubt there is some risk to the investor, but I think it could play out well. There is a scenario that predicts extremely low or negative rates mid day as more solar comes on. That would just shift the arbitrage period.

 

[SageBrush]

Ahh... I forgot about demand charges. That may well explain the investment.