Can I install a BESS system to reduce my commercial electricity bills during peak hours?

In India, commercial electricity costs are increasing year in and year out, particularly during high-demand periods. Numerous industries (such as data centres, hotels, hospitals and manufacturing units) experience higher tariffs as they reach peak demand. As a result of the situation, many businesses are now looking to invest in a BESS system. However, does it actually lower costs? What does a BESS system do?

Yes, it will save you money. Businesses that purchase a BESS battery energy storage system can now use power generated from their battery during the highest-priced times of day and thus save money. Additionally, businesses now have greater control over their use of electricity.

The following outlines how a BESS system functions:

1. Stores excess electricity when purchased from the grid or generated by solar energy during off-peak times.
2. During peak periods when electricity prices increase, businesses can use (discharge) the stored energy.
3. This system protects businesses from paying for electricity when it’s at the highest price and allows businesses to gain greater control over their electricity usage.

The process to take advantage of a BESS system is broken down into the following steps:

• Power is taken from the grid or solar panels at times when electricity rates are at their lowest (off-peak time).
• Any unused, excess power is stored in the BESS battery for later use.
• The stored power is used to operate the business during peak hours of electricity pricing.
• Because less electricity is being consumed at peak pricing hours, facilities are paying less for their overall electricity usage.

Many commercial facilities can now smooth the power demands of their operations and avoid penalties associated with peak load demand through battery energy storage installed in their commercial buildings.

1. Electric prices tend to be highest during the morning and evening peak periods for most businesses. The BESS is able to allow businesses to shift their consumption to periods when electric prices are cheapest or at least minimise the amount of electricity consumed during those peak price times.

   Some of the benefits may include:

2. Decreased peak demand charges
3. Less reliance on power from utility companies

Most commercial BESS customers also own commercial battery storage to ensure that they have a reliable supply of quality power throughout their business, especially for sensitive equipment where backup UPS systems would be otherwise required.

• More reliable power supply during outages
• Less reliance on utility companies for power
• Expandable output for critical loads
• Better returns from renewable sources of energy

Combining the use of the BESS energy storage with existing rooftop or ground-mounted solar installations helps them operate more efficiently overall. Excess capacity from the solar system will be lost because there are low loads and/or wasted if no BESS is used to store the excess energy. Using a BESS to store excess energy from a solar PV system increases the value of that energy for later use.

Combining BESS solar storage helps solar electric plants provide energy service to their customers throughout the day and allows a plant to optimise the energy cycles, reducing reliance on utility providers for the energy produced. A BESS battery energy storage system allows you to control the timing of when to deliver the energy to the electric grid.

The payback period of the BESS system is affected by your organisation’s usage of energy, utility rates, and the way in which you plan to maximise the efficiency of the BESS. Businesses that have a high volume of energy usage during peak demand can achieve significant energy cost savings and a high financial return on the total investment of the BESS system.

The key financial benefits include:

• No maximum demand fee
• Ability to take advantage of lower nighttime electricity prices
• Stable power quality delivered to machines and equipment
• Lower diesel fuel usage

Installing and using a correctly sized BESS system may help you achieve maximum savings by providing energy during periods when electric prices are at their highest cost.

If you are in any of the following categories, your business would be an ideal candidate for the BESS:

• Experiencing substantial electric rate peaks
• Unable to predict or control your peak energy consumption spikes
• Using critical machinery or equipment
• Desiring to use less diesel fuel
• Installing energy-producing solar panels or batteries

The latest generation of BESS is modular and expandable to meet business requirements.

Potentially, through installing and using a battery energy storage system, you can reduce your peak electric bill. The BESS allows a business to store energy during low-price periods and provide electric power during high-price periods — it can create a greater financial return from your investment when combined with a solar energy system, since the total system will maximise both the solar and BESS operational efficiencies.

For a significant portion of the commercial sector, BESS is not an “option”; it represents a strategic investment that offers increased energy efficiency, greater reliability of supply, and maximised return on investment for your company.