Businesses using solar-plus-storage systems can realize significant cost savings through several key strategies:
- Peak Demand Reduction and Energy Arbitrage: By storing excess solar energy generated during the day and using it during peak hours, businesses can reduce their reliance on expensive grid electricity. This approach can help companies avoid high peak-demand charges common during periods of high energy use. For instance, in California, businesses can save up to 40% with the right storage strategy, particularly through time-of-use (TOU) rate optimization.
- Reducing Grid Reliance: By generating and storing their own energy, businesses can minimize their consumption of grid electricity, especially during high-cost periods. This reduces their overall energy expenses and provides greater control over energy costs. For example, a manufacturing facility in Australia with a solar-plus-storage system reduced its daily grid power usage significantly, resulting in monthly savings of around AUD 56,700.
- Participation in Demand Response Programs: Businesses with solar-plus-storage can participate in demand response programs, which allow them to earn additional income by adjusting their energy usage in response to grid needs or by selling excess energy back to the grid. In California, programs like Tesla’s Virtual Power Plant (VPP) can generate participants up to $2,000 annually.
- Avoiding PV Export Penalties: In areas without net metering or where export rates are low, solar-plus-storage systems allow businesses to store excess energy for use later, avoiding potential penalties or reduced earnings from exporting electricity to the grid.
- Annual Cost Savings: Businesses using solar-plus-storage can save between $20,000 and $50,000 annually in energy costs, as reported by a study by Wood Mackenzie.
Overall, these strategies not only enhance cost savings but also improve operational resilience and contribute to a more sustainable energy future for businesses.
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