How Energy Storage can help businesses to go green while saving money

In today’s business world, sustainability is the word on everybody’s lips. Businesses of all types are trying to reduce their impact on the natural world, both out of concern for the environmental footprint and because it is good for business. Today’s consumers want to support businesses that operate sustainably. For many consumers, sustainability is a differentiator which helps a business stand out over its competitors.

One of the most effective ways for businesses to become more sustainable is to reduce the impact their energy usage has on the climate. Renewable sources of energy such as solar PV allow businesses to ensure that the electricity they use has been generated without fossil fuels. Solar PV also brings significant financial benefits as there are no ongoing costs after installation. This is especially important given the high energy prices we have seen over the past few years.

Businesses can also reduce their environmental impact by electrifying their operations and moving away from using gas and oil for heating and cooking. Heat pumps allow businesses to eliminate the use of fossil fuels in heating by making efficient use of electricity.

Not only can businesses themselves go green, but they can also support their customers desire to live more sustainably, for example by providing electric vehicle (EV) charging on site for customers. Providing EV charging can drive loyalty amongst EV drivers who appreciate the convenience of being able to charge while visiting your business.

Business sustainability plans face challenges

Despite the powerful incentives for change, businesses who want to go green often face significant barriers.

The electrification of heating (with heat pumps) and EV charging often mean that businesses significantly increase their electricity consumption. Due to this increase in demand, our electricity grid needs significant investment in order to challenge of decarbonisation. Businesses often find that their electricity provider is unable to deliver the amount of power they need and sometimes have to scale back their sustainability plans as a result.

Every business electricity connection agreement defines a Maximum Import Capacity (MIC) in kilowatts (kW) which is the maximum amount of power that the business can draw from the grid at any one time. The deployment of heat pumps and EV charging often result in a large increase in power consumption during peak hours, potentially exceeding their MIC. Businesses often find that the electricity grid operator is unable to increase their Maximum Import Capacity (MIC) to the level required. This may cause them to either scale back (or cancel) their sustainability plans, or else pay the grid operator hefty fees to upgrade the local grid infrastructure (expensive transformers, substations, and power distribution lines).

Businesses who utilise solar PV systems often generate more power than they can use at any given time. In these cases, the excess energy can potentially be exported to the grid in exchange a feed-in tariff payment. This arrangement is often not the most financially beneficial as feed-in tariff rates are set lower than the cost of electricity for most businesses. This means that businesses which export power instead of using it on site are not making the most of their solar PV installation.

Additionally, many businesses are not permitted to export power in the first place, due to local grid issues. For these businesses, the potential of any excess power is wasted.

How GridVolt supports businesses in overcoming these challenges

Energy storage solutions can support businesses with going green. GridVolt’s energy storage system contain everything needed to store energy and manage businesses’ energy usage. This includes high-capacity battery packs, inverters and GridVolt’s smart energy management software which optimises charging and discharging of the system.

How can GridVolt system help solve business’ sustainability challenges?

When businesses are unable to get the MIC they need from the electrical grid, they can rely on the energy storage system to provide additional power to get through peak hours with no interruption to business. This means that businesses can pursue sustainability initiatives such as installing heat pumps and EV charging. The batteries can be charged up again using cheap night-rate electricity or by using the output from their solar PV.

This is called peak shaving (because it reduces, or shaves, the peak energy consumption) and can allow businesses to go green without paying expensive upgrade fees. 

Energy storage can also help support businesses make the most of their solar PV installations. Energy storage systems can capture any excess power that is generated by the solar panels and store it so that it is available when it is needed on-site. This ensures that all electricity generated is used and no power is wasted or exported for an underwhelming feed-in tariff. As a result, energy storage systems can significantly enhance the value of solar PV systems.

As well as supporting sustainability initiatives, energy storage can also save businesses money by maximising the use of cheaper night-rate electricity. Electricity is usually much cheaper during night-time hours compared to the day. Energy storage systems can charge up at night with cheap electricity when demand is low. The batteries can then discharge during the day when the power is needed. Not only is this night rate electricity cheaper, but it is usually greener because it is generated mainly using wind energy.

How GridVolt can solve problems while also being a smart investment

The great thing about energy storage systems such as GridVolt is that they can deliver value through multiple methods simultaneously. GridVolt’s energy storage solution contains smart energy management software which continuously optimises the behaviour of the system, allowing it to, for example, reduce peak energy drawn from the grid while simultaneously making maximum use of solar power and night rate electricity.

Because of these multiple value streams, energy storage solutions can prove extremely financially rewarding for businesses. In combination with a solar PV array, energy storage systems can pay back through cost savings in as little as 3 years without any additional grant support or funding.

GridVolt offers a complete energy consultancy service as part of our process. We have developed a detailed model which analyses businesses existing power consumption, any future additional demand growth, and factors in projections around solar PV yield (if relevant) and electricity tariffs. As a result, GridVolt can project the financial and environmental benefits that an energy storage solution can bring to businesses and provide detailed recommendations as to the best strategy for your business to go green while saving money.