The size of an energy storage system significantly affects the potential savings it can provide to users. Here are key ways in which system size influences savings:
Effect on Potential Savings
- Storage Capacity: A larger capacity allows more energy to be stored, which can be particularly beneficial if the energy is gathered at a lower cost or “for free” from renewable sources like solar panels. This can lead to greater savings by reducing reliance on the grid, especially during high tariff hours.
- Depth of Discharge (DoD): The DoD is crucial as it determines how much of the battery’s capacity can be safely used without damaging the battery. A higher DoD (e.g., 80%) means a larger portion of the battery’s capacity is usable, maximizing savings.
- Cost Reduction Strategies: Energy storage systems facilitate peak shaving and load shifting. By storing energy during off-peak hours and using it during peak hours, users can avoid higher electricity costs, leading to significant savings.
- Energy Independence: Larger systems can provide more extended periods of backup power, enhancing resilience during grid outages and supporting critical systems like lighting and refrigeration.
- Initial Investment vs. Long-term Savings: While larger systems require a higher upfront investment, they typically offer greater cumulative savings over the system’s lifespan (often 10-15 years).
Example Savings
- Scenario 1 (Small Home without Solar): A 5kWh battery can save a household about £280 annually by charging during off-peak and discharging during peak hours.
- Scenario 2 (Medium Home with Solar): An 8kWh battery may save around £600 per year by storing excess solar energy and using it during peak hours.
- Scenario 3 (Large Home with Solar): A 12kWh battery can lead to savings of approximately £900 annually.
In summary, larger energy storage systems offer more substantial potential savings due to increased storage capacity and prolonged independence from grid electricity. However, these benefits come with higher upfront costs, necessitating a balance between system size and financial investment to achieve optimal savings.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-size-of-the-energy-storage-system-affect-the-potential-savings/
