Are you in the market for a new energy storage system? If so, do you know what markets are the best candidates? Here at SEM Power, we want to help you when it comes to commercial energy storage savings. One of the top solar energy companies Florida residents love is here to help.
NREL Helps Narrow Down The Markets
Recent years have seen massive price declines in battery technology coupled with generous incentive programs in some markets. As a result, there is an increasing number of energy storage use cases for a greater cross-section of commercial energy users. The National Renewable Energy Laboratory (NREL) recently released a study looking at which markets, specifically, are best suited for energy storage.
The study relies upon the rates utility customers pay in demand charges as the key metric in making this assessment, because, as the study authors note, demand charges are “a key predictor of the financial performance of behind-the-meter battery storage systems.” For some, this may beg the foundational question of why are demand charges a “key predictor” of energy storage’s potential in the first place. To answer this, it is important to understand both how energy storage is best suited to deliver value to customers and how demand charges are structured.
What Is The Best Energy System?
At a high level, storage is generally best deployed in short, targeted bursts, in order to reduce load during the periods of highest marginal costs. Its value comes from its ability to be responsive and quickly deliver power when called upon. This is how the battery typically provides the most value—through demand charge management and demand response.
A third strategy called Time-Of-Use arbitrage may increasingly be an option for some customers. This is essentially a buy-low, sell-high approach and is reliant upon sufficiently large price differentials between peak and off-peak periods for the battery to deliver value from “shifting” the load. Historically, this has not been a viable approach as most C&I rates do not have sufficient price deltas occurring at sufficient frequencies for this method to pencil economically.
For those not familiar, demand is billed based on the greatest amount of power a customer ever pulls from the grid within a given period. By way of analogy, you might equate a utility meter to the instruments on the dashboard of a car. If energy is billed based on the odometer reading or how many miles it has traveled, demand would be billed based on the fastest speed recorded by the speedometer.
Call The Best Solar Energy Companies Florida Residents
When it comes to picking an energy storage system, there are several factors to consider in order to receive the most cost and time efficient solar experience. SEM Power is a top Florida solar installer and features the best solar battery system. We are leading the charge when it comes to harnessing the power of battery technology, and we have made significant investments already. Call our professionals today for your solar battery solutions. We are specialized in solar battery storage and are ready to get you started for the future with one of the best solar energy companies Florida residents trust!