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Making Customer Battery Storage Work for a Cleaner, Less Expensive Grid
This briefing by RMI argues that current commercial electricity rate designs, specifically noncoincident demand charges, encourage inefficient battery storage use that can conflict with the needs of renewable-heavy power grids. The document advocates for a transition to time-varying rates and compensation for grid services to better align customer incentives with system-wide operational requirements.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Briefing
Are Residential Demand Charges The Next Big Thing in Electricity Rate Design?
This briefing by RMI explores the potential of residential demand charges as a tool for electricity rate design. It argues that as distributed energy resources (DERs) like rooftop solar and electric vehicles increase load variability among residential customers, traditional energy-only charges become inequitable. Demand charges, which bill based on the maximum power used in a cycle, can more accurately reflect grid infrastructure costs, promote customer equity, and provide price signals that encourage load shifting and the adoption of demand-management technologies.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Briefing