Based on variables such as location electricity rates and load demand, energy storage can be the perfect option for energy bill reduction facilities. The price of energy storage systems is steadily declining, whilst the number of installed energy storage systems installed by the consumer is rising rapidly.

According to GTM Research, there was a 142% rise in installed MWh in the customer-based segment from Q1 2015 to Q1 2016. They also expect almost 50% of all implementations to be customer-based by 2021. Take a closer look at the five advantages that these services can offer:

Environmental advantages

Energy storage has several environmental advantages that can make it a powerful tool to achieve sustainability goals. By enhancing the overall performance of the power grid, storage accelerates the wider adoption of renewable energy.

At a much more local level, an energy storage device has no pollution such that it can be installed anywhere in a building with no obvious environmental or air quality effects. And if coupled with solar PV, not only will the electricity be GHG-free, but the integrated device is also eligible for government investment tax credits.

Demand charge reduction

Based on the venue, many industrial and commercial installations are subject to energy bill costs. These costs are based on the 15-minute span in which energy demand is highest during the day and may, in some cases, account for 50% of the overall energy bill.

Although energy efficiency or solar PV may minimize overall electricity usage, these advantages do not always correlate with the peak use of buildings. Energy storage systems, particularly those coupled with intelligent software, can monitor the load of the facility and minimize demand charges by supplying battery electricity during peak demand hours, essentially “flattening” the load.

Contribution to demand response programs

Traditionally, the demand response for industrial and commercial facilities requires a reduction in use at peak demand periods. Energy storage will allow involvement in demand response projects without affecting on-site energy usage or operations. By reacting to utility price signals, storage systems will maximize the financial return of participating in DR projects, thus supporting the grid as a whole.

Boosting time-of-use rates

In general, Battery energy storage systems can move power consumption from costly periods of high demand to low-cost periods of low demand. This decreases the possibility of reducing the value of on-site solar as tariff arrangements adjust over time, and peak demand times move to the evening when the sun does not shine. This also helps facilities to make the most out of the time-of-use rates and reduce the possibility of changing the tariff structure to the price of electricity.

Emergency backup

Preparing for critical backup power is a crucial aspect of the resilience plan. Historically, industrial and commercial facilities have invested heavily in local emergency reserve infrastructure. With innovative storage solutions on the market today, it might be possible to upgrade this system to provide not only emergency backup, but also a range of other money-saving and money-making strategies. And by using this facility on a regular basis to reduce demand for charging, its efficiency and flexibility in the case of a power outage can be improved compared to a stand-alone battery and diesel generator that is only used during a power outage.