You’ve probably heard the term (and we’ve mentioned it in previous newsletters), but what does it mean? Leaps forward in energy storage, coupled with increasingly efficient and cheap renewable sources, is changing the way we generate and use our energy.
Our energy system used to be based on large centralised generation plants, which fed down through the distribution system to the users. But, with large volumes of renewable generation being plugged in from individual generators at all levels, there is now a two-way flow of energy.
SunGift have now spent 13 years in the constantly evolving renewable energy industry, and the advancements in technology we’ve seen over this time have been staggering! As the rate of change increases, so the influx of investment further paves the way to a cleaner, more sustainable energy system.
Cheaper Solar
There are a few main factors behind this change. One is people’s overriding support for clean energy, and their care for the future of the environment. However, for the vast majority, financial viability is a major motivation. Given that over the past 40 years the cost of solar panels has plummeted by a massive 99%, and in the last few years has fallen by a further 30%, people are in a better position than ever to embrace renewables!
Energy storage
Now things really start to get interesting. With improved efficiencies and cost reductions in energy storage, it is now possible for people to generate, store and use their own energy during the day via clean and cheap renewable sources. This opens opportunities for companies, investors – and shortly residential customers – to participate in the energy market. They can do this by changing the way they buy and consume energy, as well as providing services to the grid.
For example, I’m sure everyone has heard about the peak load issues our grid faces, such as when everyone makes a cup of tea at half-time during big football matches. Well, this surge in energy requirements can be met not only by large storage systems, but also with thousands of smaller systems working together through an aggregator. Continued improvements in monitoring and communication technology are allowing this to work effectively.
What does this mean for you?
Put simply, it means that the opportunity to become even more self-sufficient is now very real. Generating and storing your own energy, selling services to the grid, and buying energy when it is cheap and avoiding it when it is expensive, combine to make what is now a financially attractive option. So, it is no wonder there is a revolution underway, and it won’t be long until local generation and energy storage is the norm!
