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7.A. - Page 190 of 285 2019 Nonresidential New Construction Reach Code Cost Effectiveness Study Figure B. Medium Office Upfront PV Costs PV energy output is built into CBECC-Com and is based on NREL's PVWatts calculator, which includes long term performance degradation estimates. 15 3.2.2 Battery Storage This measure includes installation of batteries to allow energy generated through PV to be stored and used later, providing additional energy cost benefits. This report does not focus on optimizing battery sizes or controls for each prototype and climate zone, though the Reach Code Team ran test simulations to assess the impact of battery sizes on TDV savings and found diminishing returns as the battery size increased. The team set battery control to the Time of Use Control (TOU) method, which assumes batteries are charged anytime PV generation is greater than the building load but discharges to the electric grid beginning during the highest priced hours of the day (the "First Hour of the Summer Peak"). Because there is no default hour available in CBECC-Com, the team applied the default hour available in CBECC-Res to start discharging (hour 19 in CZs 2, 4, and 8-15, and hour 20 in other CZs). This control option is most reflective of the current products on the market. While this control strategy is being used in the analysis, there would be no mandate on the control strategy used in practice. The current simulation software has approximations of how performance characteristics change with environmental conditions, charge/discharge rates, and degradation with age and use. More information is on the software battery control capabilities and associated qualification requirements are available in the Residential Alternative Calculation Method Reference Manual and the 2019 Reference Appendices for the 2019 Title 24 Standards. 16,17 The Reach Code Team used costs of $558 kWh based on a 2018 IOU Codes and Standards Program report, assuming a replacement is necessary in year 15.18 Batteries are also eligible for the ITC if they are installed at the same time as the renewable generation source and at least 75 percent of the energy used to charge 13 Available at: https://www.nrel.gov/docs/fvl6osti/66532.pdf 14 Available at: https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 15 More information available at: https://Pvwatts.nrel.gov/downloads/pvwattsv5.pdf 16 Battery controls are discussed in Sections 2.1.5.4 and Appendix D of the Residential Alternative Calculation Method Reference Manual, available here: https://ww2.energy.ca.gov/2019publications/CEC-400-2019-005/CEC-400-2019-005-CMF.pdf 17 Qualification Requirements for Battery Storage Systems are available in JA12 of the 2019 Reference Appendices: https://ww2.e n ergy.ca.gov/2018 pu bl i cati o ns/CEC-400-2018-021/CEC-400-2018-021-CM F. pdf 18 Available at: http://Iocalenergvcodes.com/download/430/file path/fieldList/PV%20PIus%20Battery%20Storage%20Report 15 RE 2019-07-25 442 Unit Cost Cost Useful Life (yrs.) Source Solar PV System $2.30 /Wdc $310,500 30 National Renewable Energy3Laboratory (NREL) Q1 2016 Inverter Replacement $0.15 / Wdc $20,250 10 E3 Rooftop Solar PV System Report" Maintenance Costs $0.02 / Wdc $2,700 1 PV energy output is built into CBECC-Com and is based on NREL's PVWatts calculator, which includes long term performance degradation estimates. 15 3.2.2 Battery Storage This measure includes installation of batteries to allow energy generated through PV to be stored and used later, providing additional energy cost benefits. This report does not focus on optimizing battery sizes or controls for each prototype and climate zone, though the Reach Code Team ran test simulations to assess the impact of battery sizes on TDV savings and found diminishing returns as the battery size increased. The team set battery control to the Time of Use Control (TOU) method, which assumes batteries are charged anytime PV generation is greater than the building load but discharges to the electric grid beginning during the highest priced hours of the day (the "First Hour of the Summer Peak"). Because there is no default hour available in CBECC-Com, the team applied the default hour available in CBECC-Res to start discharging (hour 19 in CZs 2, 4, and 8-15, and hour 20 in other CZs). This control option is most reflective of the current products on the market. While this control strategy is being used in the analysis, there would be no mandate on the control strategy used in practice. The current simulation software has approximations of how performance characteristics change with environmental conditions, charge/discharge rates, and degradation with age and use. More information is on the software battery control capabilities and associated qualification requirements are available in the Residential Alternative Calculation Method Reference Manual and the 2019 Reference Appendices for the 2019 Title 24 Standards. 16,17 The Reach Code Team used costs of $558 kWh based on a 2018 IOU Codes and Standards Program report, assuming a replacement is necessary in year 15.18 Batteries are also eligible for the ITC if they are installed at the same time as the renewable generation source and at least 75 percent of the energy used to charge 13 Available at: https://www.nrel.gov/docs/fvl6osti/66532.pdf 14 Available at: https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 15 More information available at: https://Pvwatts.nrel.gov/downloads/pvwattsv5.pdf 16 Battery controls are discussed in Sections 2.1.5.4 and Appendix D of the Residential Alternative Calculation Method Reference Manual, available here: https://ww2.energy.ca.gov/2019publications/CEC-400-2019-005/CEC-400-2019-005-CMF.pdf 17 Qualification Requirements for Battery Storage Systems are available in JA12 of the 2019 Reference Appendices: https://ww2.e n ergy.ca.gov/2018 pu bl i cati o ns/CEC-400-2018-021/CEC-400-2018-021-CM F. pdf 18 Available at: http://Iocalenergvcodes.com/download/430/file path/fieldList/PV%20PIus%20Battery%20Storage%20Report 15 RE 2019-07-25 442