Over the last few years, the solar marketplace has doubled in size, and solar has become the world’s fastest growing source of electricity. The impact of clean, green solar as an energy source will continue to accelerate when coupled with battery technology. Battery technology will serve to solve for solar’s largest impediment – the reduction of solar irradiance on a cloudy day or overnight.
In the past, high capital costs inhibited the adoption of storage systems. Between rapidly falling costs and utilization of the Investment Tax Credits (“ITC”), storage systems have greatly improved economics. The ITC serves to reduce the initial capital outlay, often can be applied to storage systems in conjunction with solar, and increases the economic feasibility of a linked PV and battery storage system.
The three key benefits our customers can expect when we combine solar PV and battery storage systems include:
Time of use (“TOU”) arbitrage
TOU arbitrage is the utilization of “free electricity” stored within a battery when utility TOU rates are at their highest in order to maximize financial savings.
Cost savings can also be achieved when end users utilize a paired solar and storage system to exercise peak shaving. Peak shaving is accomplished by supplementing the power from the utility with solar power stored within a battery when the onsite energy demand is at its highest. Electricity users pay for their power in terms of their electricity usage and the resultant demand charges, which are based on the highest usage within a billing cycle. These demand charges account for spikes in usage and can often constitute more than half of a commercial or industrial end user’s bill. By using stored solar energy to decrease their peak demand, users can greatly reduce their monthly utility bill.
Level of Resiliency
Finally, by implementing your solar PV system with an energy storage system, your level of resiliency is vastly increased. For our users who rely on a continuous supply of electricity (e.g. hospitals, cold storage facilities, schools and community centers), energy storage may provide an invaluable measure of added security when the energy grid goes down.
If you would like to go solar but hold off on energy storage at this time, EnterSolar can accommodate you. We can design a solar system for future compatibility with a battery storage system.