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Home/The economics of merchant solar co-located with battery storage systems

The economics of merchant solar co-located with battery storage systems

In a report commissioned by Anesco and Wyelands Bank, new analysis by Aurora Energy Research shows that hybrid solar power and battery storage systems are coming of age.  Hybrid systems are quickly becoming investable opportunities in the GB power system for equity investors and asset finance lenders – without any public subsidy.

Key insights from this new analysis include:

  • New independent report from Aurora Energy Research examines the potential returns from locating solar power and battery storage on the same site
  • Aurora expects 5GW of subsidy-free solar on the GB power system by 2030, thanks to falling technology costs
  • “Hybrid” projects with both solar and storage have lower costs and lower risks than standalone projects, and will likely be the first to be deployed
  • A typical hybrid project deployed in 2020 is predicted to achieve an internal rate of return of around 7% based on Aurora’s central scenario
  • These returns could increase by a few percentage points in a slightly more optimistic but realistic market scenario

Interested in commissioning a similar analysis? Get in touch!

To access the insight report please fill out your details.

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