Energy storage thermostat profit analysis

Is energy storage a profitable business model?

Although academic analysis finds that business models for energy storage are largely unprofitable, annual deployment of storage capacity is globally on the rise (IEA, 2020). One reason may be generous subsidy support and non-financial drivers like a first-mover advantage (Wood Mackenzie, 2019).

How do I evaluate potential revenue streams from energy storage assets?

Evaluating potential revenue streams from flexible assets, such as energy storage systems, is not simple. Investors need to consider the various value pools available to a storage asset, including wholesale, grid services, and capacity markets, as well as the inherent volatility of the prices of each (see sidebar, “Glossary”).

Do investors underestimate the value of energy storage?

While energy storage is already being deployed to support grids across major power markets, new McKinsey analysis suggests investors often underestimate the value of energy storage in their business cases.

How can energy storage be profitable?

Where a profitable application of energy storage requires saving of costs or deferral of investments, direct mechanisms, such as subsidies and rebates, will be effective. For applications dependent on price arbitrage, the existence and access to variable market prices are essential.

What is an energy-saving smart thermostat?

An energy-saving smart thermostat is an advanced and innovative device designed to optimize heating, ventilation, and air conditioning (HVAC) systems in residential and commercial spaces. A smart thermostat can be remotely controlled and programmed through a smartphone app or integrated with voice-activated virtual assistants.

How does a smart thermostat work?

A smart thermostat can be remotely controlled and programmed through a smartphone app or integrated with voice-activated virtual assistants. It has the ability to learn and adapt to user’s preferences and schedules and capacity to provide real-time energy consumption data and insights.