Solar Plus Energy Storage | Microgrids
Reduce Demand Charges and Increase Resilience
Solar Plus Energy Storage to Reduce Demand Charges
The use of battery storage is usually designed around one of two strategies: demand shaving or solar PV over-production. Demand shaving is a strategy that uses the selective discharge of stored battery energy to reduce or ‘shave’ the peak demand of utility power. Cutting down the maximum demand or peak during the billing month lowers the demand charge portion of the utility bill. Storing energy for PV over-production functions as a way to capitalize on the energy produced by a solar PV system in excess of what is being used by a facility. The stored energy can then be used when facility demand exceeds PV production rather than credited by the utility at a low rate or not at all.
Currently the majority of battery storage systems installed at commercial facilities in Indiana are designed with the intention of reducing monthly peak demands. Sophisticated battery controllers monitor energy demands and model expected demand requirements. These systems use complex predictive analytics to optimize the amount of energy discharged, and consequently demand reduction, within the limit of the battery capacity.
Many systems are capable of “learning” expected facility demand profiles so they discharge at the right time and cut down the worst peaks, ignoring lesser peaks and consequently conserving battery energy for only those times where the highest electrical demand is predicted to occur.
If your operation is on a utility demand rate tariff and you are interested in how solar plus energy storage can help you reduce or eliminate these charges, then reach out to us. We are experts in commercial energy storage and can provide you with an accurate, detailed financial model that will help you determine if a solar plus storage project would make sense for your facility.