Solar-plus-storage systems are rapidly emerging as a game-changing solution in renewable energy. These systems tackle two critical issues: the intermittency of solar power and the mismatch between when solar energy is produced and when it is most needed. By combining solar panels with battery storage, these hybrid setups deliver consistent energy, enhance grid reliability, and create new income opportunities for solar plants. Solar facilities can now earn through capacity payments and arbitrage—buying energy at low costs, storing it, and selling it when prices are higher.What Are Solar-Plus-Storage Systems and How They Tackle Energy GapsThe U.S. solar industry is expanding rapidly, closing the gap with wind power. Utility-scale solar now totals nearly 120 GW of capacity, compared to 155 GW for wind, according to S&P Global Commodity Insights. However, stand-alone solar projects still dominate, accounting for 93 GW, with eight states hosting two-thirds of this capacity. This heavy concentration is causing market saturation in some areas. During peak daytime hours, solar output is so high that energy prices plummet, cutting into solar plant revenues. Additionally, many solar facilities must limit or curtail production because peak solar generation around noon does not align with peak energy demand, which typically occurs in the late afternoon or evening. This challenge is particularly pronounced in regions like California and Texas, where record solar curtailments have already occurred in 2024.Recognizing these issues, developers and grid operators are shifting toward solar-plus-storage systems. These systems integrate batteries with solar facilities to store excess energy generated during the day and release it during peak demand hours. This combination enhances energy reliability and independence.This shift is evident in the U.S. energy pipeline and grid interconnection queues. Today, operational solar-plus-storage systems contribute around 33 GW of capacity, including 22.8 GW of solar power paired with 10 GW of battery storage, per S&P Global data. Additionally, 162 GW of hybrid solar-plus-storage projects are in the planning stages, with 42% of capacity dedicated to battery storage.
RELATED: SolarBank Charges Ahead with $3M Boost for Battery Energy Storage System ProjectsMany of these new projects are strategically located in “energy communities,” areas eligible for a 10% tax credit bonus under the Inflation Reduction Act. This incentive supplements the base tax credits for investment and production, making these projects even more attractive.New Revenue Streams Energize Solar-Plus-Storage SystemsThe solar-plus-storage market is more concentrated than standalone solar. Per Wood Mackenzie’s report, Tesla Energy and Sunrun dominate the residential segment with nearly 50% market share. Non-residential solar-plus-storage follows a similar trend, with the top six installers capturing over 50% of the market in 2023, compared to ju
