Solar and battery storage systems, commonly referred to as solar + storage, are growing in popularity as businesses look for ways to reduce their energy costs and improve their resilience. But did you know that you can reap the benefits of battery storage without installing a solar array?
With the recent drop in the price of batteries, investing in energy storage could be a viable step to reducing the energy costs of businesses of all sizes. Here’s how.
What is a battery energy storage system?
A battery energy storage system (BESS) includes a powerful set of batteries and software that can coordinate energy production and use.
A BESS typically uses lithium-ion (Li-ion) batteries, like those in hybrid and electric vehicles. Li-ion batteries are safer, smaller and increasingly more affordable than other types of batteries available on the market. They also have high energy storage capacity and can be recharged repeatedly.
BESS software uses powerful algorithms and often artificial intelligence to store energy in the batteries and then deploy it when it’s needed. That energy could be from your company’s solar array or pulled from the power grid during non-peak hours when the price of energy is cheaper. Either way, the stored energy gives your business the flexibility to control how much energy you use from the power grid and at what time of day.
Improve resiliency
The power stored in your batteries can be deployed in case of an outage to keep operations running. Depending on the size of your system and your energy needs, a BESS can power critical operations to minimize inventory losses or even keep your entire company up and running. Adding solar increases resiliency because it can recharge your batteries during extended outages.
Reduce your operating expenses
Whether you’re banking power from your solar array or the power grid during non-peak hours, that stored energy can be used to reduce your energy bills. During peak hours, it can be deployed to limit the amount of energy from the power grid you need to buy — which reduces your demand charges. In some cases, a BESS may even enable you to sell that excess energy back to the grid.
More affordable than ever
The price of lithium-ion batteries commonly used in a BESS has dropped significantly in recent years. MIT reports that prices have plummeted by nearly 97% since their peak in the 1990s. This is primarily thanks to the auto industry’s investments to advance the technology.
As the country moves to integrate more renewable energy sources into the power grid, the federal government is upping the ante by earmarking millions for battery research in recently passed legislation like the Infrastructure Investment and Jobs Act. It’s expected that these efforts will continue to drive the price of battery energy storage down, making the technology more affordable for a growing number of small businesses. State and local financial incentives may also be available, further reducing your initial investment.
Considerations for your business
As you’re investigating BESS for your business, consider:
- Your business goals and how BESS can help you meet those goals
- How much storage your business will need and how you’ll use it
- Maintenance issues and additional operating expenses
Technology advances are making battery energy storage more feasible and affordable for businesses of all types and sizes. Maybe it’s time to consider the many benefits it could bring to your business.