Solar Power Storage & Batteries: Frequently Asked Questions
Investing in solar energy for your business creates an additional revenue stream, helps you achieve ESG (Environmental, Social, and Governance) goals, and significantly lowers utility costs. In recent articles, we’ve shared information on solar technology such as what goes into a solar array, the ins and outs of solar interconnects, and now solar storage. There are many misconceptions around solar batteries and storage because it is a relatively new technology. The following frequently asked questions on the subject will help you understand how solar storage systems truly work and the benefits they can offer your business.
What constitutes solar storage? How does it work?
A battery energy storage system (BESS) is a technology designed to enable renewable energy, such as solar, to be stored and released. Storage systems can be utilized by solar arrays that are connected to the electricity grid. The battery technology is intrinsically designed to use machine learning through assessing patterns and real-time needs for coordinating the production, storage, and release of renewable energy to the grid. Energy from the battery storage system is released to the grid during peak energy demand.
Many solar arrays immediately convert solar energy into power for use but the opportunity to store solar energy for peak release during high energy need times is increasing. Solar technology is growing and maturing but markets for solar storage are more in their infancy. What works in one state or utility service territory may not work in another. This makes adding solar storage to your interconnected solar array more of a process that should be explored with a solar partner like SunVest Solar, LLC.
What kind of businesses can benefit most from solar storage units?
Battery energy storage systems provide power benefits for the right businesses. Not every solar array is eligible for a BESS and here’s why. Capacity. If a business does not have enough load or variety in energy needs (i.e. peak times), the solar storage system is really an unnecessary add-on to your solar array. The solar energy collected by your array will be converted and used immediately, sustaining the capacity needs or demand of your business. Businesses with a high instantaneous peak demand usage will see the best benefits from a BESS.
However, businesses that use large amounts of power over time, but lower instantaneous peak demand are less ideal because ultimately, they would not see any sort of capacity cost savings.
Take for example, an average gas station. Instantaneous peak demand for this business would not be great enough to justify a BESS. A baseball stadium, however, would be a good example of an ideal business for a BESS. This is because a baseball stadium will be dark or have low energy needs on most days but on other days, energy consumption would skyrocket, making a BESS beneficial for cost savings. Farmers operate in a similar way, where a couple days per month or year require high peak energy use.
If you’re not sure if your business would be an ideal storage customer, our team can help assess your energy needs and capacity and recommend the best solar solution for you.
Can stored power be used as back-up power?
Typically, a BESS can only provide back-up power to a portion of the electrical loads for a large facility. Solar and storage are more beneficial and cost effective when used to curtail peak demand spikes. The ability to export power to the grid during high electricity demand periods can significantly increase the value of a BESS.
A common misconception is that solar storage units house unused energy for use during power outages or as back-up power. On the contrary, solar energy storage is more likely to be used to prevent a power outage, especially one due to grid overload in high electricity-needs areas and during peak energy use times. A BESS releases energy into the grid when there is a higher demand on the grid. If the grid is down due to an outage, the solar energy won’t make a difference with an inoperable grid.
What sort of benefits are there for ideal businesses with solar storage units?
Once you determine if your business set up is a good fit for solar storage (high capacity and peak energy times with variation), it’s important to know the benefits of using a BESS. One of the biggest selling points for a BESS is capacity charge savings. Capacity charges are costs associated with the grid’s ability to ensure and maintain a reliable source of energy flow on days of highest power demand. For example, during a heat wave when businesses must operate large AC units. This increased electrical demand correlates with your business’ energy usage and capacity.
With a BESS, stored energy can be used to reduce your peak demand. This lessens your reliance on grid supplied power during high demand periods, thereby reducing exorbitant peak-demand charges.
Another benefit of a storage system is the opportunity for shave charges. By exporting stored energy back into the interconnected grid, your business could earn additional revenue from selling that power during peak times. Often times, this will pay for the storage batteries, covering the cost of installation and maintenance. This benefit makes adding a storage system feasible and sustainable.
What are the next steps?
Solar technology and implementation for businesses is growing in demand as our world advances with an eye on sustainability. Renewable sources of energy, like solar, can help business create positive and lasting ESG impact and provide cost savings and revenue opportunities. Talk with our team today to see if your facility or land is a fit for solar array technology, electric grid interconnection, and/or a battery energy storage system.
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