In addition to providing energy resiliency during power outages, Energy Storage Systems (ESS) are a key element in the integration of renewable energy into the grid.
Grid stability requires a precise match up of real time energy demand and available energy on the grid. ESS plays a crucial role in achieving this by mitigating the discrepancy between the time of day that solar energy generation is at its highest and periods of peak demand on the grid in the late afternoon and early evening.
Battery Energy Storage Systems (BESS), with stored excess energy produced by solar during off-peak hours, can instantaneously discharge power during periods of high demand. This effectively smoothes out the energy supply and demand curve helping to reduce the need for costly grid upgrades and expensive power purchases from "peaker plants".
Ultimately these avoided cost would be passed through to all utility rate payers so savings from BESS benefit residential energy consumers and businesses alike.
To support these benefits to grid infra-structure, State Energy Regulatory Authorities mandate that local Utilities implement lucrative incentive programs to promote the development of Battery Energy Storage.
Energy Storage Inventive Programs
Programs and incentives vary between different States and Utility Territories, but the following key benefits are provided to incentivize the deployment of Solar Energy Storage Systems:
Key Financial Benefits:
Revenue from Battery discharge at peak load periods.
Reduce energy costs by lowering on-site peak demand charges.
Lower costs by shifting grid energy use to off-peak periods.
Lower costs at host sites by reducung capacity tag charges.
Provide host sites with Back-Up power during grid power outages.
Stabilize fluctuations in host site power quality.
Reduce costly grid upgrades and "peak power" purchases.
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