In the second of his blog series Nigel Dent, Connected Energy Head of Sales, outlines five compelling reasons your company could make huge savings with battery energy storage systems.
“Over the last decade, research, innovation, and investment in lithium-ion batteries has led to an 85% decline in cost, offering up electric vehicles (EVs) and battery energy storage systems (BESS) as viable options for both commercial and domestic use for the first time.
For those business owners in the commercial sector whose electricity bills exceed £50,000 per annum, it’s worth considering the range of benefits – both environmental and financial – to be gained from using a BESS. These systems not only reduce electricity costs but provide an excellent return on investment via grid connection and as an energy sales asset.”
“The Treasury Office published new information in March this year, on the ‘super tax deduction’ which is estimated to impact over 2.8 million companies, which could claim the tax relief. Between 1st April 2021 until 31st March 2023, companies investing in qualifying new plant and machinery assets will be able to claim a 130% super-deduction capital allowance and 50% first-year allowance (FYA) for qualifying special rate assets.”
Sidestep peak demand charges
“Electricity demand is never straight and level, and peaks in demand can put pressure not only on the national grid, but also on businesses that consume a lot of energy as they pay a much higher rate for peak times. BESS allows businesses to avoid or at least heavily reduce these costs by combining access to the grid at low peak / low-cost times with stored energy during peak tariff periods.
This ‘demand charge avoidance’ or ‘peak shaving’ can also be useful for businesses operating with grids overseas, where peak energy use incurs significant additional penalties on top of peak tariffs, or there are many customers reliant on the grid within a local area, i.e., at manufacturing / industrial sites.”
Build a local microgrid
“Microgrids are smaller local grids which are designed for use with no/little interaction with larger electricity grids, and for storage, batteries offer a greener alternative to previously utilised diesel generators. The falling costs of solar panels make a local, or company microgrid a more attractive option to businesses who want to move towards their own net zero goals by generating their own power – at least in part – from a renewable source.
Additional benefits include use in remote locations, such as offshore sites, and reducing pressure on budgets which would otherwise have to allow for fluctuating energy prices.”