Energy update: Solar PV + batteries on the rise – higher network fees likely
Deutsche Bank Research
November 13, 2024 11:00 AM
Key Takeaways
- The rapid growth of solar PV and battery storage is putting strain on the electricity grid, leading to higher network fees.
- The cost of solar PV and batteries has fallen sharply in recent years, making them more affordable for households and businesses.
- The shift to solar PV and batteries is expected to continue in the coming years, as more and more people seek to reduce their carbon footprint and energy bills.
- Higher network fees are likely to be necessary to cover the cost of upgrading the grid to accommodate the increased demand for renewable energy.
Analysis
The rapid growth of solar PV and battery storage is putting strain on the electricity grid. This is because solar PV and batteries generate electricity intermittently, meaning that they can’t always be relied upon to meet demand. As a result, the grid needs to be upgraded to accommodate the increased variability of renewable energy.
The cost of solar PV and batteries has fallen sharply in recent years, making them more affordable for households and businesses. This has led to a surge in installations, which is putting further strain on the grid.
The shift to solar PV and batteries is expected to continue in the coming years, as more and more people seek to reduce their carbon footprint and energy bills. However, this growth is likely to be constrained by the need to upgrade the grid.
Higher network fees are likely to be necessary to cover the cost of upgrading the grid. These fees will be passed on to consumers, who will pay more for their electricity.
Implications
The rapid growth of solar PV and battery storage is having a significant impact on the electricity grid. Higher network fees are likely to be necessary to cover the cost of upgrading the grid to accommodate the increased demand for renewable energy. This will have implications for consumers, who will pay more for their electricity.
Recommendations
We recommend that policymakers take the following steps to address the challenges posed by the rapid growth of solar PV and battery storage:
- Increase investment in grid upgrades to accommodate the increased demand for renewable energy.
- Implement policies that support the deployment of solar PV and batteries, while also ensuring that the grid is reliable and affordable.
- Educate consumers about the benefits and costs of solar PV and batteries, so that they can make informed decisions about whether to invest in these technologies.
About Deutsche Bank Research
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Energy update: Solar PV + batteries on the rise – higher network fees likely
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