Don’t Mitigate Demand Charges – Eliminate Them

With every project proposal we are asked, what is the cost of commercial energy storage system.  The simple answer is that there is no cost.  There is only savings to be had. According to an NREL Clean Energy Group analysis, millions of commercial customers may be able to reduce electrical utility costs by adding energy storage*.  In most cases, commercial customers are obligated to pay demand charges which can account for up to 70% of their energy bills depending upon their utility and location.  Typically demand charges are based upon the highest average electrical consumption during a given billing period which may be highly variable from month to month.   Demand charges may vary significantly from one utility, state, locality, and business to another and can be as high as $15 to $50 per kW.  When a company uses hundreds of kW in a 15 minute period, those increased costs can be substantial.   Furthermore, utility companies reserve the right to change the tariffs they charge to customers in order to recover costs from the customers to keep the grid running.

Due to the high costs demand charges and the uncertainty of future rate schedules, it is necessary for commercial customers to consider alternative methods of protecting their business revenue stream from excessive demand charges imposed by utility companies.  Installing a commercial energy storage system along with solar PV is a fantastic way to mitigate demand charges and reduce the cost of energy.   When the long cycle life of lithium energy storage solutions, the reduction of overhead, and the available investment tax credits (ITC), the cost of commercial energy storage system is actually based upon the savings that the PV+ storage system will benefit any business.

By deploying a Solar PV+ energy storage for demand shaving, companies can mitigate the high costs of peak demand charges.  When the benefits of battery storage systems are fully utilized, companies can become energy independent and even eliminate utility charges altogether.

That’s where we come in.  We work with accredited PE’s and financing institutions and together come up with a comprehensive plan to reduce the cost of commercial energy storage system or eliminate it all together.  The goal is to develop a long term solution that will reduce your business’s variable electricity expenses while ensuring that you have the power you need when you need it.

Contact us today to get started with your energy savings!

*sources from: https://www.cleanegroup.org/millions-commercial-customers-cut-costs-battery-storage/

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