What is a third-party energy storage system?

Third-party ownership involves a company like Madison Energy Investments financing and operating the battery while the savings are shared between the energy storage system owner and the host site. This option eliminates the upfront capital requirements and the need for system operation staff for the host site.

How does peak power save money on energy bills?

Adams explained, “Peak Power is operating batteries to generate a pool of savings, and then the savings are shared with the building owner, through a fixed payment or through a shared saving structure. So, the standalone energy storage is primarily providing economic benefits and savings for facility bills.”

Can a combination of solar and storage reduce a customer's Bill?

For certain customers, the combination of solar plus storage can reduce a customer's bill by more than either solar or storage on their own. This is possible because: Solar reduces the amount of electricity drawn from the utility, but since solar power is not dispatchable, it is difficult to reduce the monthly peak and associated demand charges.

Is energy storage a viable option?

Assuming the initial analysis shows that energy storage is an economically viable option, the final decision to procure an ESS needs to be taken in the broader perspective of the business as a whole. This can include looking at issues of space, noise, and timing for system installation.