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We also assume the sales and marketing costs for PV+BESS includes the cost of 20 more hours for a DC-coupled system and 32 more hours for an AC-coupled system than would be included for a PV-only system installation ( (Feldman et al., 2021), Table 10). We assume the electrical BOS and installation labor are 90% of what they would be if the systems were installed separately. We do include some cost savings for a combined PV and battery storage system. Costs for residential PV systems come from NREL’s bottom-up PV cost model (Feldman et al., 2021). We also consider the installation of PV systems combined with BESS (PV+BESS) systems. Residential BESS can be installed separately or can be added to an existing PV system (as an AC-coupled system).

Rent, building, equipment, staff expenses not directly tied to permitting, inspection, and interconnection customer acquisition or direct installation laborįixed percentage margin applied to all direct costs including hardware, installation labor, direct sales and marketing, design, installation, and permitting fees. Sales and marketing (customer acquisition)Ģ0 additional hours for DC system, and 32 additional hours for AC system, per closed sale, associated with selling a PV system with storage Permitting, inspection, and interconnectionĢ0/32 hours (DC-coupled/AC-coupled) of commissioning and interconnection labor, and permit fee

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Residential Battery Storage Systems Model Inputs and Assumptions (2019 USD) Model ComponentĮ/P is battery energy to power ratio and is synonymous with storage duration in hours.īattery pack only (Bloomberg New Energy Finance (BNEF), 2019)Īssumes a bidirectional inverter (Bloomberg New Energy Finance (BNEF), 2019), converted from $/kWh for 5 kW/14 kWh systemĮngineering design and professional engineer-stamped calculations and drawings We assume 2020 battery pack costs of $248/kWh DC 2019 USD (Bloomberg New Energy Finance (BNEF), 2019). Key modeling assumptions and inputs are shown in Table 1. We use the same model and methodology but do not restrict the power or energy capacity of the BESS to two options. While these changes are small, we recommend using the data presented here in the ATB rather than what was previously published with the Storage Futures Study.Ĭurrent (2020) costs for residential BESS are based on NREL’s bottom-up BESS cost model using the data and methodology of (Feldman et al., 2021), who estimated costs for both AC- and DC-coupled systems for a less-resilient (3 kW/6 kWh) installation and a more-resilient (5 kW/20 kWh) installation. We would note though that, during the elapsed time between the calculations for the Storage Futures Study and the ATB release, updated values have been calculated as more underlying data have been collected. This work incorporates current battery costs and breakdown from the Feldman 2021 report (Feldman et al., 2021) that works from a bottom-up cost model. The bottom-up battery energy storage systems (BESS) model accounts for major components, including the LIB pack, inverter, and the balance of system (BOS) needed for the installation. The costs presented here (and for distributed commercial storage and utility-scale storage) are based on this work. The NREL Storage Futures Study has examined energy storage costs broadly and specifically the cost and performance of lithium-ion batteries (LIBs) (Augustine and Blair, 2021). There are a variety of other commercial and emerging energy storage technologies as costs are well characterized, they will be added to the ATB. It represents lithium-ion batteries only at this time. The 2021 ATB represents cost and performance for battery storage with two representative systems: a 3 kW / 6 kWh (2 hour) system and a 5 kW / 20 kWh (4 hour) system.