One of the biggest problems in solar energy remains the state of battery technology.
That’s why battery technology is such a big focus with ARPA-E, the Department of Energy’s energy research program. Envia Systems and 24M were both winners in the latest round of grants, which aim to spur additional private sector investment. IBM is hot enough on the market that they’re going ahead despite losing-out on the government money.
Meanwhile consumers are stuck with the kinds of batteries found in their cars or the UPS systems under their desktops. A lead acid Absorbed Glass Battery suitable for a home solar installation costs $340 (plus shipping) at Amazon,, discharges quickly and doesn’t tolerate overcharging. It’s not a real storage solution.
Still, the market is strong enough that Lithium Ion technology, designed for cars like the Chevy Volt, could make their way into these markets. Dana Holding Corp. (no relation) is supplying these kinds of batteries for the Volt. Traders are already speculating on lithium http://www.theepochtimes.com/n2/content/view/50833/, anticipating a run-up in demand.
This is important from the point of view of channel growth. The bigger and more efficient the channel for battery breakthroughs, the faster those breakthroughs can get to market.
The main point I want to make is that these markets buttress one another. Even if electric cars are silly from an environmental perspective (and right now they are, given the status of the grid, battery weight, and costs) they’re a great draw for battery technology enthusiasts.
Batteries in the same class are going to back up home solar installations, channels are being developed, research is moving ahead, and when the breakthroughs come they will get to consumers quickly.