How Energy Storage Can Lower Hidden Costs
Since commercial solar has become a popular choice for business owners looking to cut overhead electricity costs, interest in possibility of adding solar battery storage has risen, and with good reason. Though solar energy can offset up to 100% of electricity consumption during the day, businesses are still forced to utilize electricity from the grid at night. For businesses that need to run electrical appliances during the night, the resulting bill must come as quite a shock as energy inflation continues to spiral out of control. Whilst the utility rate for electricity at night is indeed lower, it can be eliminated with one simple addition to your existing solar system- solar batteries.
What are solar batteries?
A solar battery can offer an uninterrupted energy supply. As the photovoltaic cells on your solar panels convert solar energy into electricity, they can then be stored in a battery for later use. Solar panels create energy in the form of direct current (DC) which is then stored in batteries. However, since appliances use alternating current (AC), solar inverters are used to convert DC into AC as energy is released from solar batteries.
A solar battery is essentially a device that lets you store the excess energy created by your energy system during peak sunlight hours. Most batteries available on the market currently are cobalt-free, lithium-ion batteries. When stored electrical energy needs to be drawn from, the batteries’ lithium ions release free electrons that travel from the negative to the positive cathode. This results in the release of an electrical charge that can power all appliances that are plugged in.
Why should businesses invest in solar batteries?
Simply cutting overhead electricity costs isn’t the only reason that solar batteries are a great investment for businesses. If, as a business owner, you have ever experienced the headache of power outages or brownouts, you’re probably aware that solar panels cannot continue to produce energy under such circumstances. However, once paired with a solar battery, businesses can use solar energy even when the utility grid is down. With this kind of energy independence, you could keep your business up and running even when others around you have shut it down.
Though businesses may not initially think of power outages and brownouts as hidden costs, the reality is that such events often cause huge losses, especially if the area you operate in is prone to power instability. Power outages and brownouts can be caused by both an unstable, overloaded utility grid and extreme weather conditions, often leaving businesses without power for days. According to EnergySage, power outages cost businesses $150 billion every year. This is precisely why solar batteries are such a valuable asset for businesses that utilize solar energy.
While the initial investment can prove to be an impediment, the long-term advantages far outweigh the costs. Utility companies often charge extra when supplying power during peak productivity hours, which can add significantly to your utility bill if your solar panels are restricted by overcast weather. Even on cloudy days, solar panels produce at least a fraction of their usual output, and this power can be supplemented with stored solar energy, eliminating the need to draw from the grid altogether.
If you’re worried about the initial investment, it’s probably time to look into solar battery financing options. IE Construction offers a range of loans for solar equipment purchases that can ease your transition toward energy independence. Not only that but there are several ways to make sure you recover your investment as soon as possible. In addition to saving you from the aforementioned hidden costs, solar batteries are eligible for a wide range of rebates and incentives, such as the federal solar tax credit of 30% of installation cost.
Solar Batteries Offer Better Rates Under NEM 3.0
If you’re a business owner who currently generates energy using solar panels, you’re likely familiar with net metering. Under the current net metering program, NEM 2.0, California business owners with solar storage systems earn 30 cents per kWh for the excess power they send back into the grid. However, by April 15, 2023, the new net billing policy, referred to as NEM 3.0, will replace net metering and its favorable rates.
Under NEM 3.0, the average credit will come to just 8 cents per kWh. Though the transition to NEM 3.0 will reduce savings, the brand-new net billing policy offers solar battery owners a distinct advantage. The new net billing policy introduces a time-of-use rate which will be calculated via an avoided cost calculator. Under NEM 3.0, time-of-use rates will be lower during the day and higher at night. If you do not anticipate using your stored energy in the immediate future, you could release the stored energy at night and get much better savings under NEM 3.0.
Choose IE Construction for Solar Batteries
Investing in solar energy storage further lowers your business’s carbon emissions, achieves energy independence, and lowers many hidden costs.
IE Construction offers solar battery installation for businesses. Whether you’re interested in purchasing a brand-new solar installation or simply want to add solar batteries to an existing system, we offer the best commercial solar solutions.
With our years of experience helping both small and large businesses switch to dependable solar energy systems, we are equipped to help you with all your solar installation needs. Contact us today to find out how we can help your business move toward a sustainable, cost-effective future.