Renewable energy generation is high on the list for businesses looking to reduce their carbon footprint and energy bills. Whilst it plays a crucial role in energy security, we’re now starting to look more at how this power is used and how we can get the most from it. Introducing: battery storage.
What is battery storage?
A solar installation will produce power during daylight hours which works well for businesses with daytime working hours. But what happens when you have a 24-hour load, or night shifts? Suddenly you’re back using grid-sourced power.
With battery technology advancements, battery storage is now much more accessible and affordable for domestic and business users alike. Whether this is retrofit or installed as part of a new project, batteries offer the facility to store any excess power generated for later use.
How does battery energy storage work?
Let’s say for example, at any point your solar array is producing 100kW and your on-site load is 90kW. Without a battery, the excess 10kW would be fed back to the grid and you may be able to claim an export tariff of between 3-15p per kWh. If we spread this out over a day, you may be exporting around 400kWh. At a rate of 5p/kWh, this would bring you a revenue of £20 per day. Great news – you’re making money from solar.
But what happens if you add a battery? If that 400kWh is kept for use later in the day when it’s dark outside, and you’re currently paying 26p to purchase power, that’s a saving of £104; an extra £84 in your pocket per day.
In addition, there’s also the option for energy arbitrage.
What is energy arbitrage?
Energy arbitrage is where a business has a contractual agreement with its energy provider allowing it to purchase and sell energy at differential rates, depending on the demand. Time of use (TOU) tariffs also provide the potential for improving return on investment (ROI) by enabling the business to chatge the battery during low tariff periods, for use at high tariff periods.
I can’t have solar installed – can I have battery storage?
Yes – though battery storage works seamlessly with solar, it can also work independently as a standalone system. Buying electricity from the grid at a cheaper rate to charge the battery can represent substantial savings. Similarly to the example above, using an energy management system (EMS), you can track energy rates and set the battery to charge during lower rate times. This not only gives you greater control of costs, but also provides energy stability.
Installation of a battery can also assist with peak shaving to support businesses with high peak consumption. For example, a manufacturing business with machinery that has a high load for short time periods.
More businesses are starting to understand the vast benefits of switching to renewable energy. Speak to our team of experts today if you’d like more information, or to take the next steps towards reducing energy bills, lowering your carbon footprint and securing greater energy independence.
