Modeled vs. empirical wholesale market value for co-located solar + storage projects
Lawrence Berkeley National Laboratory (LBNL) has published a new study and accompanying data resources on the wholesale market value of large-scale co-located photovoltaic-plus-storage (PV+S) projects in the United States.
The research estimates the wholesale market value of 280 operational PV+S projects across the seven ISOs/RTOs and 19 additional balancing authorities, representing roughly 95% of the U.S. PV+S fleet in 2024. The analysis models optimized hourly dispatch under energy, capacity, and ancillary-service market opportunities, and compares the resulting value with standalone PV value, project-specific levelized cost estimates, and empirical operating or revenue data where available.
Some of the key findings include:
- In an optimized dispatch case with perfect price foresight, adding batteries increased the modeled national generation-weighted market value of hypothetical standalone solar from $29/MWh to $75/MWh in 2024. The modeled value increase was driven by higher capacity value, followed by ancillary-service value and energy shifting.
- For projects with available cost data, optimized PV+S market value between 2020 and 2024 exceeded levelized generation cost by nearly $35/MWh when accounting for tax credits.
- Empirical operating and revenue data were available for 51 projects. In 2024, observed PV+S operations realized $39/MWh, or 62% of the modeled value.
- The realized storage premium reached 38% of its modeled optimized value in 2024, suggesting that many projects had the potential for greater wholesale market contributions.
- Differences between optimized and observed value reflect a range of possible factors, including wholesale market participation, bilateral capacity prices, grid-charging restrictions for some older projects, dispatch practices, price and generation forecasting, visibility of price signals in non-ISO regions, and contract or program incentives.
The research findings are available as a briefing slide deck and a data summary file of annual optimized wholesale market values from the base scenario. In addition, plant-level hourly modeled generation and battery dispatch data and annual value estimates are available through the Open Energy Data Initiative.
For more information:
- Download full briefing slide deck and plant-level dispatch and value data here: https://emp.lbl.gov/utility-scale-storage
- A public webinar will be held on June 10th at 10:00 AM Pacific/1:00 PM Eastern. Register here: https://lbnl.zoom.us/webinar/register/WN_M5F0xJr2RUCWWS1PKQtyuw
We appreciate the support of the U.S. Department of Energy for making this work possible.