Promoting behind-the-meter battery storage: optionsfor more effective government support and regulation

Abstract

We examine the use of subsidies to promote behind-the-meter battery installation, the limitations and perverse outcomes created by these subsidies, particularly as a result of suboptimal spatial concentration. We suggest the use of consumer subsidies to promote behind-the-meter batteries is unlikely to lead to optimal outcomes in aiding the integration of distributed generation sources (solar PV). It is also possible batteries could reduce the reliability of the grid. The problems identified relate to the undirected installations of batteries within the grid due to the reliance on consumers to take part in a subsidy scheme. Recommendations for policy makers and regulators are to encourage optimal installations through directing subsidies, and in lieu of that, to orchestrate and/or coordinate individual installed battery capacity. Show more