Battery technology is typically used in commercial solar energy storage, storing electric energy as chemical energy when a facility’s demand for energy is higher. Most batteries use lithium-ion technology, and the systems are about the size of a refrigerator, depending on how much power the business needs. Over the past few years, this new technology has been proven to make a big impact on business’ bottom lines. Read on to learn more about their impact.
Why Commercial Batteries Are Important
Batteries are getting a lot of attention in the energy industry because, over time, they’ve become more affordable and safer. They can be used in situations which require a lot of energy for a short period of time as well as those requiring lower amounts of energy for longer periods, making them perfect for energy storage in commercial, industrial, and residential systems.
How Commercial Batteries Work
To understand how batteries work, you must understand how companies are billed for energy use and how batteries work with solar to lower it.
- Understanding your bill: Utility customers pay for the power they use plus demand charges within a billing cycle. Demand charges are the spikes in usage beyond regular usage, which results in hundreds if not thousands of dollars a month in added costs. In some states demand charges make up more than half of a commercial customer’s monthly utility bill.
- Combining solar with batteries: Businesses use solar to generate their own power. Once that power is generated, it is stored in batteries, which regulate how much of that energy is used. For example, a business that operates from 9 to 5 would use more energy from 8 to 5 and less during the morning and evening hours. Using stored energy instead of the building’s normal source of power then results in lower demand spikes and reduced utility bills.
The Bottom Line
Most businesses demand charges can make up 45-50% of electricity costs, so lowering them by using commercial batteries can make a big difference on the bottom line. This effect can be compounded by combining batteries with solar for even greater energy savings.
As battery costs continue to decline, businesses have an even greater opportunity to cut their energy bills, impact the environment less, and increase their bottom line.