The benefits of solar + storage for businesses large and small
April 2nd, 2021 | By Chad McComas
April 2nd, 2021 | By Chad McComas
Solar panels and backup battery storage can be huge assets for businesses, given the potential for commercial and industrial customers to reduce both their overall kilowatt-hour usage as well as their peak demand charge. By leveraging a backup battery storage system, your business benefits from resiliency and the potential for electric bill reductions. As electricity prices continue to trend upward, now is the right time for your business to consider going green. Adding solar + storage also signals to your customers that you’re serious about sustainability and protecting the environment. Keep reading to learn how solar + battery storage can benefit your business.
Those who own businesses may not understand how their electric bill works, so the following may be eye-opening for you. Utility companies assess a peak demand charge to commercial and industrial customers based on the largest amount of power they use during a 15-minute interval of a billing cycle. This can account for 30-40 percent of a customer’s electric bill — not an insignificant amount of money! Utility companies assess this charge to ensure that the grid has the energy necessary to fulfill a commercial/industrial customer’s peak need. By issuing a demand charge, customers have incentive to keep their peak use low.
So let’s do the math on what a commercial power bill could look like. Let’s say that your business consumes approximately 6,000 kWh of electricity each month. And for sake of ease, let’s say that your price per kWh was $.10. That would leave you with a $600 monthly bill just for your energy usage. Factor in that up to 40 percent of your overall bill goes toward your peak demand charge, and you’re looking at a potential $1,000 monthly bill before taxes and fees.
Now imagine adding solar panels that offset half of the amount of grid electricity you consume. Not only would it reduce your usage bill to $300 in the example, it also has the potential to reduce your demand charge too. That’s the value and beauty of solar. And that’s without factoring in the benefit of storage. Your demand charge can be further reduced by leveraging a backup battery system. Any energy stored in the battery can be deployed during peak hours, when time-of-use rates may also be in effect.
Our backup battery solutions have sophisticated but user-friendly software to get that done. For example, if your utility company is charging you double for grid energy from 4 p.m.-7 .pm., your battery can be programmed to deploy its stored energy during that window and potentially save you a lot of money. If 4 p.m.-7 p.m. is also your peak time of energy use, that peak shaving figures to lower your demand charge. Ka-ching!
Additionally, with the solar investment tax credit (ITC) recently extended by Congress, it’s possible that your business is eligible for further savings on your solar panel system. For 2021 and 2022, the tax credit remains at 26 percent, which allows you to deduct up to that amount off the cost of your system. And perhaps your business is also eligible for the Rural Energy for America Program (REAP) that could reduce your cost by another 25%.
In addition to helping business owners potentially save money by cutting down on electric bills, a solar + battery storage system also adds stability to your business. States in Pink Energy’s northern footprint are no stranger to power outages. By investing in backup battery infrastructure, businesses are able to protect against the loss of power and can stay at least partially operational without taking a major loss.
Another benefit of solar + battery storage is meeting the sustainability goals of your business by reducing your company’s carbon footprint. Our solar energy systems cause no harm to the environment and can be placed on either your rooftop or on a ground-mounted array.
Pink Energy has undertaken many commercial projects across its footprint. Most recently, Pink Energy installed solar panels for NC State Athletics at Carter-Finley Stadium atop the Murphy Center. With the completion of this installation, Pink Energy has installed solar panels for all seven sports partners. That list also includes the Carolina Panthers, Cleveland Browns, Cleveland Indians, Detroit Lions, Indianapolis Colts and Pittsburgh Steelers.
Pink Energy wants your business to benefit from the power of the sun. Contact (877) 4-GO-Pink so that our team can help your business get started on solar!