— The rise of the prosumers

2 TH E R I S E O F TH E PRO S U M E R S

The demand for solar energy in residential installations is on the rise and has been for some time. Lower costs, better solar cell efficiency, a more supportive regulatory and taxation environment, and concern about climate change have all contributed to the surge in demand.

At the same time, the smart home revolution means that today’s consumers are more demanding and expect higher levels of control over their energy use. An emerging generation of renewable energy users are producing and consuming their own power, as the vision of a zero-emissions future becomes mainstream. These ‘prosumers’ want to store energy and only use it when they need to. This movement is driving demand for solutions that support their self-reliant living, reduces their electricity bills and helps society mitigate climate change via reduced carbon emissions.

It’s this demand for control and connectivity that will unlock the real potential for solar power in residential installations.

—The intelligent solar boom

3 TH E R I S E O F TH E PRO S U M E R S

Prosumers are not roughing it. The availability of connected solutions, which can remotelymanage energy usage, control heating or launch a favorite playlist means that self-reliant homes are rapidly becoming venues for more comfortable and convenient lifestyles.

It's all part of the rise of the "clean energy economy," where intelligent buildings equipped with photovoltaic (PV) cells and turnkey solar power storage solutions are enabling families and businesses to achieve energy self-sufficiency.

Prosumers may be early adopters but the movement they're leading is no small niche.

By 2020, according to research from IHS Markit™, more than 25 terawatt hours (TWh) of electricity will be generated and self-consumed on site in Germany, Italy and the United Kingdom, in aggregate.

ABB provide technologies and products that arepropelling this emerging revolution and enabling installers to meet the needs of prosumers.

—"Prosumers" pave path to energy self-reliance for sustainable living

5/16/2018 "Prosumers" pave path to energy self-reliance for sustainable living

http://new.abb.com/news/detail/3883/prosumers-pave-path-to-energy-self-reliance-for-sustainable-living 2/6

Today's prosumers may be early adopters, but the movement they're leading is no small niche.

By 2020, according to research from IHS Markit™, more than 25 TWh of electricity will be

generated and self-consumed on site in Germany, Italy and the United Kingdom, in aggregate.

The technologies and products propelling this emerging prosumer revolution will be in the

spotlight at the Light + Building trade fair this week in Frankfurt, Germany. There, innovations

from ABB will provide proof points that energy users can increasingly control their own

destinies, via solutions that align with the event's major theme of sustainablility and intelligent

energy management.

ABB demonstrates real-world energy self-reliance

ABB is already delivering on the prosumer promise in the northern lowlands of Switzerland.

Eight families are living in a 100 percent energy self-sufficient "house of the future" built by

Umwelt Arena Spreitenbach in partnership with ABB. Solar panels covering the roof and facade

generate direct current (DC), which is converted to alternating current (AC) for household use

by 26 ABB solar inverters. In one hour, the system harnesses enough energy to power the

building for a full day, with the excess stored in batteries for later use.

4 TH E R I S E O F TH E PRO S U M E R S

ABB is delivering on the prosumer promise in the northern lowlands of Switzerland. Eight families are living in a 100 percent energy self-sufficient "house of the future" built by Umwelt Arena, Spreitenbach, in partnership with ABB. Solar panels covering the roof and facade generate direct current (DC), which is converted to alternating current (AC) for household use by 2 6 ABB solar inverters. In one hour, the system harnesses enough energy to power the building for a full day, with the excess stored in batteries for later use.

In the United Arab Emirates, ABB is helping harness the power of the sun for Dubai's first all electric city. ABB has supplied 400 inverters to harvest solar energy for 400 villas in what's beencalled the Sustainable City, the region's first fully sustainable community. The Sustainable Citywill house some 2,000 residents within an area of approximately 500,000 square meters. Thepanels and ABB inverters will ultimately generate 10 megawatt-peak (MWp) of power on privateand public buildings within the city.

Projects like these show what prosumers can do with technology that's available today.

—Demonstrating real-world energy self-reliance

5 TH E R I S E O F TH E PRO S U M E R S

For prosumers ready to turn their dreams of energy independence into reality, ABB hascombined the solar inverter with energy storage capability, in a new, modular system calledREACT 2. REACT 2 does dual duty to support up to 90 percent energy self-sufficiency: The inverter portion of the system delivers AC for household power, and it also sends excess electricity to the unit's lithium-ion battery, available with storage capacities from 4 kWh to 12 kWh, where it's stored for later use.

In real-world operation, excess electricity is typically produced by rooftop solar cells duringpeak hours of sunlight. It's stored by the REACT 2 for use after dark, during the night, and early in the morning. The upshot is that prosumers are never without energy.

The security of "always on" power is one reason why the majority of prosumers don't go entirely"off the grid." Maintaining a connection back to the utility supports excess demand that can'tbe met by self production, provides backup in the case of local equipment failure and enablesprosumers to sell excess power back to the utility.

PV energy

REACT 2Solar energy storage

system. Store solar energy according to your needs.

ABB-free@homeHome automation system gives you total

visibility and control over energy usage

ABB AC WallboxCharge your vehicle with energy

harnessed from the sun

Connects via wireless network

‘Plug and play’ installation for new systems or retrofitting of existing PV systems

Improved self-sufficiency with long-life battery capacity increasing from 4 kWh to 12 kWh

Adapts to changing energy needs of household

90% energy self-reliancepotential means reducedhome energy charges

Local usage Grid

—The benefits of ABB REACT 2

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To complete the ecosystem required to elevate the smart home into a comfortable venue for flexible living, self-reliant energy systems are supported by ABB Ability™, ABB’s industry-leading portfolio of digital solutions. For example, REACT 2 continuously transmits energy status and usage data to ABB-free@home®, the open home automation platform that's part of ABB Ability™.

ABB-free@home® handles automated operation of numerous other in-home systems – everything from heating and air conditioning to blinds and lighting. The garage isn't forgotten; ABB-free@home® can also control electric vehicle charging solutions such as the new ABB AC wallbox. There's even a mobile app, enabling residents to control their entire home on the go.

Going forward, the energy prosumer movement is poised to gain ground through the growingmarket penetration of the new generation of solar power storage solutions such as REACT 2.The biggest factor driving adoption is the decreasing cost of both solar panels and inverters. The price drops are driven by the maturation of the relevant technologies and by governmental policies being implemented in many countries to encourage increased use of renewables.

—Self sufficiency is more than technology – it's a lifestyle

User-friendly The entire home can be controlled as usual with switches, and even more practical: with the smartphone, tablet, or computer.

Total visibility It allows you to control and see the status of your home – no matter where you are in the world.

Free & flexible The functions can be fully customized according to your requirements. All settings can be easily changed later via the app.

—The advantages of ABB-free@home®

7 TH E R I S E O F TH E PRO S U M E R S

For example, the SunShot Initiative was launched by the U.S. Department of Energy in 2011, with the goal of driving down the costs of PV installations by 75% by 2020. The effort is working. Last September, the DOE's National Renewable Energy Laboratory reported that ithad achieved its utility-scale PV goal of $0.06 per kilowatt hour three years earlier than expected. (Residential and commercial solar costs have also come down, to $0.16 and $0.11, respectively. That's well on the way to the 2020 targets of $0.10 and $0.08, respectively.)

In Germany, the Renewable Energy Act (Erneuerbare Energien Gesetz, or EEG) is encouraging rapid adoption of renewables, including solar power.

The European Union, via the European Parliament Think Tank, is calling for a common definition of energy prosumers and for legislation to encourage investment in self-generation capacity.

The Swiss Federal Office of Energy (SOFE) believes that, by 2050, it will be possible to meetaround 20 percent of current electricity demand in Switzerland through PV systems.

Viewed collectively, the introduction of increasingly advanced solar storage technologies, the construction of more energy self-reliant buildings and the growing governmental focus on regulatory support all make one thing abundantly clear: 2018 is shaping up to be the year of theenergy prosumer.

8 TH E R I S E O F TH E PRO S U M E R S

Prosumers count on you to provide them with solar installations that will meet their demands for energy control and storage. This creates an opportunity to be at the forefront of the intelligent solar boom. Self-consumption of energy is key, so make the most of solutions that put control for energy usage and storage back into the hands of the homeowner.

—Prosumers count on you...

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At ABB, our constant innovation means that our solar portfolio offers you the very latest intelligent solar technology. Our portfolio also gives you among the widest choice in the industry so that whatever the nature of your installation, we’ll always be able to provide you with the ideal equipment. In other words, you can count on us for what you need, which means that your customers can count on you.

—...So count on us

10 TH E R I S E O F TH E PRO S U M E R S

—And achieve more with your installations

Prosumers' appetite for greater connectivity and smarter solutions drive the future of the residential solar market. As an installer, you’re in a great position to capitalize on the solutions that put control for energy usage and storage back into the hands of the homeowner.

Are you ready for the opportunities presented by smart homes and the demand for solar energy?

Visit http://abb.com/solarinverters for resources and advice on how you can achieve even more with your residential solar installations.

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© Copyright 2018 ABB. All rights reserved. Specifications subject to change without notice.

—ABB Ltd. Electrification Products divisionCityport, Affolternstrasse 44,Zurich 8126Switzerland

http://abb.com/solarinverters