Batteries Charge Up for the Electric Grid

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If Lithium-ion battery prices continue to fall, many storage applications could become economically viable by the end of the decade. These applications include peak-shaving for commercial and industrial customers, grid storage to integrate renewables, and fast-response ancillary services.1 Notably, these applications are not based on backing rooftop solar , an application that is a long way off. Northeastern US markets, especially New York City, as well as California and Hawaii will be the first storage markets. Tesla Energy (not rated) sells batteries today for $350-$400/kilowatthour (kWh) and forecasts prices below $200/kWh by 2020. Battery prices have declined more than 50% since 2010.

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