Businesses can achieve significant cost savings by using battery energy storage systems (BESS) for peak load management. Here are some ways BESS can help reduce costs:
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Peak Shaving
- Strategy: Businesses store energy during off-peak hours when electricity prices are lower and use it during peak hours when prices are higher.
- Savings: This approach can lead to substantial electricity cost savings by avoiding high peak-hour prices.
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Time-of-Use Pricing
- Benefit: Utility companies offer time-of-use pricing plans that provide lower rates during off-peak hours, further enhancing cost savings for businesses using BESS.
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Grid Services
- Opportunity: Businesses can participate in demand response programs to earn money by reducing energy consumption during peak demand periods.
- Revenue Potential: Excess stored energy may be sold back to the grid or used to provide grid services like frequency regulation, providing additional revenue streams.
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Incentives and Tax Credits
- Favorable Tax Credits: Many territories offer incentives and favorable tax credits for businesses that integrate renewable energy sources like solar with BESS, reducing the capital costs of such systems.
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Reduced Grid Infrastructure Costs
- Avoidance of Upgrades: For businesses like EV charging stations, using BESS can avoid the need for costly grid infrastructure upgrades by managing peak loads more efficiently.
The payback period for BESS typically ranges from 5 to 10 years, depending on the system size and local energy market conditions. With continued advancements in battery technology and economies of scale, the cost of BESS is expected to decrease further, making them more attractive for businesses looking to optimize their energy costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-potential-cost-savings-for-businesses-using-battery-energy-storage-systems-for-peak-load-management/
