Co-locating solar and storage projects offers several cost-saving benefits:
- Shared Infrastructure Costs: One of the primary advantages is the ability to share existing infrastructure, such as land and grid connections, which significantly reduces capital outlay. This means costs associated with leasing land, obtaining planning permission, and establishing new grid connections are minimized.
- Operational Cost Savings: By co-locating, both the solar and storage systems can benefit from economies of scale in operational costs. This includes lower maintenance costs since the same workforce can manage both assets more efficiently.
- Reduced Curtailment: Integration of solar with storage can prevent energy curtailment, where excess energy is wasted due to demand limitations. By storing energy, the potential for it to be utilized later maximizes the effectiveness of the solar generation, reducing the cost impact of curtailment.
- Arbitrage Opportunities: Co-location enables price arbitrage, where energy is charged from the solar panels during off-peak hours and sold during peak hours when energy prices are higher. This strategy helps optimize revenue streams, which indirectly contributes to cost savings by enhancing overall project viability.
- Future-Proofing: With declining government subsidies for renewable projects, co-locating solar and storage enhances the return on investment by optimizing asset value. It allows developers to future-proof their projects by planning for potential storage additions.
Overall, co-location not only reduces direct costs but also enhances the financial stability and potential of renewable energy projects by maximizing their operational efficiency.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-cost-saving-benefits-of-co-locating-solar-and-storage-projects/
