Generally speaking, solar energy systems will help you save money on your electricity bill for your business. However, many people do not know how valuable energy storage or battery systems can be. There are many incentives in place to help you get started if you're looking to go solar with batteries. Batteries are not just for backup! Here are four benefits of solar energy plus batteries that make it worth switching to a solar energy with battery storage.
Batteries Make the Solar Energy More Valuable
As more and more solar energy systems are placed on the electricity grid the less valuable the energy from them will become. For example, energy rates in Pacific Gas and Electric territory are lowest in late spring during midday due to the glut of solar energy. Solar plus battery projects can generate inexpensive solar energy, save it by storing it in the battery, then release it in the evening. As a result, the facility will avoid buying energy when the cost from the utility is the most expensive. Energy rates are now highest in the evening when usage is still high, but sunlight starts to diminish. Battery storage makes your solar energy more valuable.
Battery Storage Reduces Demand Charges
It is very common for utility electricity rates to have a component called a “Demand” charge. Peak demand refers to the highest level of power needed at your facility in a given month. Managing and reducing peak demand is one of the most productive ways to save electricity cost for a business. New smart controls in batteries enable the storage device to release power so that your facility does not have spikes in power needs. This reduces your demand charges.
More Cash for Other Ventures
Nearly all energy systems with batteries can be financed by investor owners. The system owner can sell you energy and batteries services for fixed fees. This means you can get savings the minute the system starts operating and it leaves your enterprise with more funds to invest elsewhere. In some projects in California companies have seen savings as high as a 40% on their electricity bills after they installed solar energy plus batteries. This translates into an increase profitability of 3 – 5% for some enterprises.
Hedge Against Ever-Increasing Rates and Changing Tariffs
In general, fixing your cost for energy with a solar energy power purchase agreement will allow you to have steady cost for your energy as opposed to yearly modifications to energy rates through the utilities. The addition of the battery storage system gives your solar energy system even more flexibility and capability of offsetting or protecting against changing rate structures. Battery deployment software can be updated with the latest tariffs and time of use allocations, so your system becomes smarter at deploying the solar energy even after changes.
Closing thoughts
Overall, switching to a solar energy with a storage system is smart investment. Over the lifetime of your solar energy and battery storage systems you can save substantially more money than solar energy systems alone. The battery has the unique ability to reduce demand charges and redeploy solar energy to optimal times. The battery storage system also acts as an additional hedge against rising rates.