Battery energy storage systems (BESS) reduce energy costs for businesses through several key mechanisms:
1. Peak Shaving
By storing energy during periods of low demand (off-peak hours) and deploying it during peak hours, businesses avoid high electricity rates imposed during peak demand. This can reduce energy costs by up to 80% in sectors like commercial buildings and factories.
2. Renewable Energy Integration
BESS enables businesses to store excess solar or wind energy generated during optimal conditions. This stored energy is used when production drops (e.g., at night or during low wind), reducing reliance on grid electricity and lowering costs.
3. Demand Response Participation
Businesses with BESS can sell stored energy back to the grid during high-demand periods, earning incentives or reducing peak charges. For example, Texas saw $750 million in consumer savings in summer 2024 through such programs.
4. Reduced Grid Dependency
Storing on-site renewable energy allows businesses to operate independently during outages and avoid volatile grid pricing. This is critical for industries like data centers, hospitals, and manufacturing.
5. Avoided Demand Charges
Many businesses face steep fees based on their highest electricity usage during peak periods. BESS smooths these demand spikes, significantly reducing charges.
6. Operational Efficiency
BESS enhances energy management by optimizing self-consumption of renewable energy and minimizing waste. For example, pairing solar panels with storage maximizes rooftop PV efficiency.
7. Regulatory and Financial Incentives
Governments often offer subsidies for adopting BESS, particularly when paired with renewables. These incentives lower upfront costs and accelerate ROI.
Example: A medium-sized business using a 70 kWp solar system and a 308 kWh BESS reduced grid reliance by managing peak loads, cutting costs through self-consumption, and participating in demand response programs. Texas’s energy storage deployments during peak summer months similarly demonstrated large-scale savings.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-battery-storage-systems-help-reduce-energy-costs-for-businesses/
