The United States Energy Information Administration (“EIA”) published an October 30th report titled:
The share of solar generation with co-located battery storage is increasing (“Report”).
The Report states that utility-solar developers are increasingly co-locating with new solar photovoltaic capacity.
Co-location in the energy sector denominates the practice of more than one energy technologies on the same facility with a connection to a shared grid connection. An example is the pairing of renewable generation (i.e., solar or wind) with battery energy storage systems.
Arguable benefits include:
- Better utilization of grid connections.
- Increased flexibility.
- Access to multiple revenue streams.
The October 30th EIA Report states that as of September 2026, over 16% of new utility-scale solar capacity added this year is co-located with operable battery storage. This is compared with 2% in 2017.
The Report also cites what is described as reported plans for solar additions scheduled to come online in the last three months of this year which indicate that the share with co-located battery storage could increase to 19% this year. It further states:
… Longer-term plans indicate that this trend will continue, with the portion increasing to more than 30% in plans submitted for 2027 and 2028.
Wholesale prices are stated to play a factor in directing solar electricity output to the grid or battery. Wholesale prices in regions with larger solar participation are stated tend to fall when solar contributions are high and rise as they decrease. It is further noted that:
… Plants with both solar and battery storage can manage the combined output of their generating resources to maximize their value in a changing wholesale price environment.
States cited as having a share of solar generation co-located with battery capacity that is more than double the national average include:
- California.
- Arizona.
- New Mexico.
- Nevada.
A copy of the Report can be found here.
The Between the Lines blog is made available by Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. and the law firm publisher. The blog site is for educational purposes only, as well as to give general information and a general understanding of the law. This blog is not intended to provide specific legal advice. Use of this blog site does not create an attorney client relationship between you and Mitchell Williams or the blog site publisher. The Between the Lines blog site should not be used as a substitute for legal advice from a licensed professional attorney in your state.