Yes, energy storage systems can significantly help businesses save money on demand charges. Here’s how:
Understanding Demand Charges
- Definition: Demand charges are fees based on the maximum amount of power consumed during a specific interval (usually 15 minutes) within a billing cycle. They often impact commercial and industrial users, as these businesses typically require high power demands at peak times.
- Impact: Demand charges can account for a significant portion of a business’s electricity bill, sometimes as much as 70%.
Role of Energy Storage Systems
- Peak Shaving: Energy storage systems function by charging batteries during off-peak hours and then discharging them during peak hours. This process, known as “peak shaving,” helps avoid surpassing the maximum power consumption threshold, thereby reducing or eliminating demand charges.
- Operational Flexibility: Unlike solar power, which is limited to daylight hours, energy storage systems can reduce demand peaks at any time of day or night, offering greater operational flexibility.
Integrated Solar-Plus-Storage Solutions
- Enhanced Savings: When combined with solar power, energy storage systems can enhance savings further by providing both daytime demand reduction through solar generation and nighttime demand reduction through stored energy.
Cost Considerations
- Economic Viability: Energy storage typically becomes economically viable, especially when demand charges exceed $15 per kW. However, they can offer additional benefits such as backup power during outages and increased resilience, making them advantageous even at lower demand charges.
In summary, energy storage systems can be a powerful tool for businesses looking to cut down on demand charges by providing flexibility in managing electricity consumption peaks.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-energy-storage-systems-help-businesses-save-money-on-demand-charges/
