For years, commercial buildings have relied on the grid, a one-way street of power consumption. But the rise of on-site generation, particularly solar PV, is changing the game. And the key to unlocking the full potential of this shift? Energy storage (aka batteries!).
Battery storage systems are no longer a futuristic concept; they're a powerful tool for businesses to optimize energy usage, cut costs, and enhance resilience. While their price used to be prohibitively high for commercial scenarios, we’ve seen prices fall by about 40% in the last 12 months.
Let's explore four key use cases for C&I on-site energy storage:
Increased self-consumption: Maximizing your solar utilization
The sun doesn't always shine when you need power most. Instead of feeding that excess into the grid (or to a downstream buyer like on the InRange Marketplace), batteries allow you to store that excess energy and use it when your PV system isn't generating enough to meet demand. That means more PV goes to you at a cheaper rate (and cleaner energy), and less pulling from the grid.
Peak shaving & energy arbitrage: Buy low, sell high Depending on the shape of your demand, you may need lots of power when grid prices are high. In the case where that demand is even higher than the PV is generating, you battery can charge from the grid when energy prices are low, and discharging stored energy during these high peaks. Some tenants even be limited in their import capacity from the grid during these peaks. Peak shaving allows them to rely on battery discharge to stay within their capacity limits.
Demand Response: Earning Revenue While Supporting the Grid Many utilities offer demand response programs that incentivize businesses to reduce their electricity consumption during peak grid periods. With battery storage, you can get paid by the grid to discharge your battery to meet on-site demand, instead of pulling from the grid.
Enhanced Grid Services: A Future-Proof Investment As the grid evolves, the need for flexible resources like battery storage is increases. Beyond demand response, battery systems can provide other grid services, such as frequency regulation and voltage support, further enhancing their value and opening up new revenue opportunities. New regulation in the UK, such as Elexon's P415, even allows batteries to participate in wholesale energy trading.
The energy storage future has arrived
On-site energy storage is transforming the way commercial buildings interact with the grid. By understanding these key use cases, businesses can unlock significant economic and operational benefits than with PV alone.
Is your business ready to harness the power of on-site energy storage?