In June 2018, the New York State Energy and Research Development Authority (NYSERDA) released the Energy Storage Roadmap (ESR). The ESR detailed a plan to increase the capacity of Battery Energy Storage (BES) across the state by 2025 to reach goals for improving the electric grid. A model was created to find how the operation of a residential solar + storage system could achieve the goals in the ESR. The model used linear optimization to maximize the residential homeowner’s profit under different rate structures. Further analysis of the resulting system operation provided information on metrics directly related to the ESR goals; the cost reductions for the prosumer and utility, the CO2 emission reduction, limiting exported energy, decreasing energy peaks for the system, and increasing the self-consumption of renewable solar energy. Final comparisons showed that the rate structures could be grouped into two types based on their resulting battery operation; ‘Energy Arbitrage’ when the battery was used to buy and sell energy to/from the grid, and ‘Self-Consumption’ when the battery was used to store excess solar energy and discharge to meet household demand. Energy Arbitrage rates resulted in greater decreased costs, and better emission reduction is Costs of Carbon were considered. Self-Consumption rates resulted in increased self-consumption of renewable solar energy and decreased exporting of energy. Compared to a home with only solar under Net Energy Metering, neither Energy Arbitrage nor Self-Consumption rates reduced CO2 emissions for the region, or the peak demands of the residential system. Policy makers considering new rates structures will need to decide which ESR goals are more desirable for residential consumers before implementation.
Library of Congress Subject Headings
Energy storage--Environmental aspects--New York (State); Electric utilities--New York (State)--Costs; Smart power grids; Electric power distribution--Energy conservation
Science, Technology and Public Policy (MS)
Department, Program, or Center
Public Policy (CLA)
Gaffney, Robert, "The Effects of Changing Local Electricity Rate Structures to Accommodate Residential Battery Energy Storage, Based on New York's Energy Storage Roadmap Goals" (2019). Thesis. Rochester Institute of Technology. Accessed from
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