Solar hybrid power plants, consisting of photovoltaics and battery storage (PV+BESS), are becoming increasingly significant for ensuring a stable energy system.
Global solar power capacity reached a record level of 2.2 terawatts in 2024. However, the increasing expansion of solar power also poses challenges, namely negative electricity prices and overloaded grids at peak generation times due to a lack of storage options. Hybrid power plants provide a solution here by temporarily storing solar power and feeding it into the grid at a later time. This improves grid integration and increases the profitability of renewable energy projects by exploiting price spreads.
The UK – a trailblazer in Europe
With 62% of the European market, the UK is considered a trailblazer in Europe where PV+BESS systems are concerned. This is thanks to targeted funding instruments, such as:
- Capacity market
- Contract for difference (CFD) system
- Accelerated approval procedures/regulatory reforms.
Should charging batteries from the grid be allowed? That is the million-dollar question.
Energy arbitrage – electricity trading as a business model
This is precisely where energy arbitrage, a promising business model for PV+BESS systems, in which electricity is stored when it is available at low prices and sold when electricity spot prices are high, comes into play. The challenge currently facing project developers is that, since yields are subject to unpredictable market and price dynamics, banks and investors are still cautious about financing hybrid power plants that base their revenues on energy arbitrage.
The technology is ready, but the framework conditions are not
Hybrid power plants are still being blocked by some economic obstacles, such as:
- Double grid charges incurred when charging and discharging the storage system.
- No targeted support schemes for hybrid power plants.
- Complicated approval procedures for retrofitting storage systems.
- The guarantees of origin (GOs) system requires redesign.
Energy storage systems in hybrid power plants have not been able to charge electricity from the grid if the electricity from the connected renewable power plant is to be sold with GO certificates. In the future, precise measurement and accounting solutions could ensure that a distinction is made between gray and green electricity in the stored electricity volumes. This, in turn, would allow the introduction of baseload and pay-as-produced PPAs for hybrid power plants – an important step towards opening up additional PV+BESS business models.
Conclusion: There is potential, but it demands regulation
The global ees Event series clearly shows that hybrid power plants are central building blocks of the energy transition. However, regulatory reforms and innovation-friendly market conditions are essential to realise their potential.
ees is the international exhibition series for batteries and energy storage systems
ees brings together manufacturers, distributors, project developers, system integrators, professional users and suppliers of innovative battery technologies and sustainable solutions for storing renewable energies such as green hydrogen and power-to-gas applications.
Would you like to watch presentations by renowned experts on business models for solar hybrid systems from the Intersolar & ees Conferences 2025?
All recordings of the conference sessions are available on our on-demand platform, The smarter E Digital.
