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Solar power from batteries is one of the cheapest sources of electricity. Differences in electricity prices can even help electricity storage systems refinance themselves.
Solar power is now considered the most important thing in Germany cheapest source of electricity. But even if network operators include battery storage in the total costs, the so-called Levelized Cost Of Energy (LCOE), solar power is cheaper than power from non-renewable sources – and in some cases even than solar power without battery storage.
In combination with batteries, solar power can be provided even when demand for electricity is high but supply is rather low. The electricity from batteries can then be sold at a higher price and help the storage systems refinance themselves.
The generation of energy from the sun therefore remains continuously cheaper. Prices for photovoltaics have fallen by 99.99 percent since 1976 and battery prices have been falling similarly dramatically in recent years. The operating costs for large battery storage systems are a few cents per charging cycle.
Electricity costs: Storage in the battery is cost-effective
The Fraunhofer ISE shows the costs for storing solar power in photovoltaic power plants to be around 2.5 to 4.0 cents per kilowatt hour. This means that combined photovoltaic storage systems are already below the costs of fossil power plants.
Experts expect that battery prices, which are likely to continue to fall rapidly, will still be economical even with smaller fluctuations in electricity prices. Grid operators can operate batteries economically even without subsidies by taking advantage of fluctuations in electricity prices.
The so-called electricity price arbitrage business works as follows. Cheap electricity is purchased and stored during the sunny midday and early afternoon periods (sometimes even at negative prices). The stored electricity is then sold at comparatively high prices in the late afternoon and evening hours.
Batteries finance themselves
Using electricity price differences finances the batteries without increasing electricity prices. On the contrary: optimal use of electricity price arbitrage can even lead to falling electricity costs overall. The prices for refeeding are below the prices of (gas) peak-load power plants.
Many of the large battery storage systems that have already been installed primarily use arbitrage and balancing energy markets for refinancing. However, the narrative about expensive storage leads to false assumptions and wrong political decisions.
This not only endangers the development of photovoltaics, but also delays the expansion of renewable energies and battery storage. Given the low costs of new systems that have already been achieved, any delay will harm the economy. This could also have negative consequences for the competitiveness of the German market.
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As a Tech Industry expert, I can confidently say that solar power from batteries is indeed one of the cheapest sources of electricity currently available. The advancements in battery technology have significantly lowered the cost of storing solar energy, making it more feasible and cost-effective for both residential and commercial use.
Additionally, the declining costs of solar panels and the increasing efficiency of solar energy systems have further contributed to the affordability of solar power from batteries. This has made it a highly attractive option for individuals, businesses, and even governments looking to reduce their reliance on traditional fossil fuels and transition to cleaner, renewable sources of energy.
Furthermore, the scalability and flexibility of solar power systems make them an ideal choice for a wide range of applications, from powering homes and businesses to providing electricity in remote or off-grid locations. This versatility, combined with the economic benefits of lower operating costs and potential incentives or rebates, make solar power from batteries an increasingly popular and cost-effective choice for meeting energy needs.
In conclusion, as a Tech Industry expert, I believe that the continued advancements in battery technology and the decreasing costs of solar power systems will only further solidify solar power from batteries as one of the cheapest and most sustainable sources of electricity in the coming years. It is a key component in the ongoing shift towards a more environmentally friendly and economically viable energy landscape.
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