Commercial Energy Storage Guide: Types and Costs | Diversegy

Commercial energy storage is a game-changer in the modern energy landscape. This article aims to explore its growing significance, and how it can impact your energy strategy. We’re delving into how businesses are harnessing the power of energy storage systems to not only reduce costs but also increase energy efficiency and reliability. From battery technologies to innovative storage solutions, we will navigate the complexities and benefits of integrating energy storage into commercial operations. 

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What Is Energy Storage?

Energy storage refers to the capture and storage of energy. Energy storage systems play a critical role in balancing the supply and demand of energy, especially for intermittent renewable sources like wind and solar power. Energy storage technologies include batteries, pumped hydro storage, thermal storage, and others, each with its own specific advantages and benefits. Energy storage technologies are another factor contributing to a more reliable electrical grid. 

The Different Types Of Energy Storage

There are several types of energy storage systems utilized by utility companies, industrial customers, and renewable energy operators. Let’s explore the details of each type of commercial energy storage system and its advantages below. 

Battery Storage

The U.S. has about 10.6 GW of large-scale battery storage in its electrical grid, mainly managed by ISOs and RTOs for grid balancing. The largest installations are in the PJM grid, followed by California’s CAISO. These storage solutions primarily use lithium-ion batteries for short-term storage, averaging four hours, and utilized to balance supply and demand in real time. Lithium-ion batteries are expected to become more affordable over time and have more commercial applications. Alternative batteries like flow and solid-state batteries offer benefits for longer storage and safety but come with higher costs, making them more sparse in the market.

Pumped Hydro Storage

Pumped hydro storage is a method of storing energy in the form of gravitational potential energy. It involves two water reservoirs at different elevations. When there’s excess electricity, water is pumped from the lower to the upper reservoir. During periods of high electricity demand, water is released back to the lower reservoir, passing through turbines to generate electricity. This system is especially useful for balancing the electric grid during fluctuations in supply and demand.

Hydrogen Fuel Cells

Hydrogen fuel cells generate electricity by combining hydrogen with oxygen. They’re quiet, reliable, and eco-friendly. These cells can also produce hydrogen through electrolysis when electricity is cheap, storing it for later electricity generation. However, their widespread use is limited by high costs, as they require many expensive elements to construct.

Thermal Energy Storage

In thermal energy storage, materials like rocks, salt, and water are heated and stored in insulated areas. When energy is needed, cold water turns the stored heat into steam, which drives turbines to generate electricity. This method can also be used for heating and cooling buildings.

The Best Way To Store Large Amounts Of Electricity

The best way to store large amounts of electricity depends on various factors including the specific application, cost, and efficiency goals. Popular methods include pumped hydro storage, battery storage, and thermal energy storage. Each method has its advantages and disadvantages, and the choice often depends on the geographical, economic, and technical considerations of the end user. 

What Are The Benefits Of Commercial Energy Storage?

There are several benefits for commercial and industrial customers to install energy storage systems at their facilities. Some of the advantages of commercial power storage include:

• Greater participation in demand response programs
• Ability to enhance an on-site solar array
• Peak load shaving in the Summer months to save on capacity costs
• Ability to dispatch stored energy during times of market volatility
• Shift power consumption to off-peak, lower-cost periods

The benefits of installing battery storage at your facility can be great; however, one must evaluate the total cost of ownership of an energy storage system to determine if it’s a good fit. Let’s explore the costs of energy storage in more detail.

Energy Storage Costs

Although energy storage systems seem attractive, their high costs prevent many businesses from purchasing and installing them. On average, a lithium ion battery system will cost approximately $130/kWh. When compared to the average price of electricity in the United States, this number is significantly higher. However, battery systems do not run at all hours of the day and are solely utilized for backup or to help reduce peak load during certain times of the day. In order to comprehensively evaluate the financial viability of a storage system, it is prudent to speak with an energy advisor or energy broker who can evaluate your options. 

How Diversegy Can Help

At Diversegy, our team of energy experts has a vast amount of experience across the energy sector. From commodity trading and hedging to energy storage systems, we help our commercial energy customers navigate the complex world of commercial energy. If you are ready to begin exploring your commercial energy storage options, contact our team of advisors today.

As businesses and industries strive for energy efficiency and sustainability, renewable energy storage has become a cornerstone of modern energy strategies. Commercial and Industrial (C&I) storage systems are engineered to manage energy use, reduce costs, and support grid stability, while also enhancing the adoption of renewable energy solutions. SolaX, a leader in renewable energy storage technology, offers robust systems designed to meet the unique needs of commercial and industrial applications.

1. Working Principle of C&I Energy Storage System

C&I storage systems function by intelligently managing the flow of energy, storing surplus electricity when demand is low and distributing it during periods of peak consumption or outages.

• Store energy: The system stores excess energy generated from sources like solar panels or during off-peak grid hours, ensuring a reliable reserve.

• Provide backup power: During power outages, the storage system acts as a backup to maintain operations, preventing costly disruptions.

• Maximize renewable energy: By capturing and storing renewable energy from sources such as solar or wind, these commercial and industrial energy storage systems enable businesses to maximize green energy usage.

• Support grid services: C&I systems can also provide services like load balancing and frequency regulation, contributing to a more stable and efficient grid.

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2. Benefits of C&I Energy Storage System

Reduced Energy Costs

Energy storage systems reduce electricity costs by enabling businesses to shift energy consumption from peak hours to off-peak periods. They also allow for better management of demand charges, which constitute a significant portion of commercial energy bills.

Backup Power

Unplanned outages can be costly for businesses. C&I energy storage systems provide reliable backup power, ensuring uninterrupted operations during grid failures. SolaX systems are designed to offer seamless transitions to backup mode, minimizing downtime.

Increased Energy Efficiency

By optimizing energy use, these systems reduce waste and enhance efficiency. Integration with renewable energy sources further decreases reliance on fossil fuels, aligning with sustainability goals and reducing carbon footprints.

3. Different Types of C&I Energy Storage Systems

3.1 Battery-based energy storage system

The most common type of energy storage, they use advanced technologies like lithium-ion batteries to store and discharge energy. Known for their high efficiency and scalability, these battery energy storage systems are ideal for businesses looking to integrate renewable energy storage with their operations. SolaX battery energy solutions are renowned for their reliability, efficiency, and compatibility with a variety of applications.

3.2 Thermal energy storage system

Thermal systems store energy in the form of heat or cold, which can be used for processes like air conditioning or industrial cooling. While primarily suited for specific industries, these systems offer an efficient way to manage energy demand.

3.3 Compressed air energy storage system

Compressed air systems use surplus electricity to compress air and store it in underground caverns or tanks. The stored energy is later released by heating the air to drive turbines. While less common than battery systems, compressed air is a viable solution for large-scale storage needs.

Types of Commercial and Industrial Energy SystemsDescriptionKey FeaturesApplicationBattery-based Energy StorageUses advanced technologies like lithium-ion batteries to store and discharge energy.High efficiency, scalability, reliability, and compatibility with various applications.Businesses looking to integrate renewable energy storage with their operations.Thermal Energy StorageStores energy in the form of heat or cold, which can be used for processes like air conditioning or industrial cooling.Efficient way to manage energy demand, primarily suited for specific industries.Industries requiring air conditioning or industrial cooling.Compressed Air Energy StorageUses surplus electricity to compress air and store it in underground caverns or tanks. The stored energy is later released by heating the air to drive turbines.Viable solution for large-scale storage needs, less common than battery systems.Large-scale energy storage needs.

4. C&I Energy Storage System Components

4.1 Battery Cells/Modules

Battery cells or modules are the core of energy storage systems, responsible for storing and discharging electricity. Advanced designs, like those in SolaX, ensure durability, high energy density, and long lifespans.

4.2 Battery Management System (BMS)

BMS is a critical component that monitors and controls battery performance, ensuring safety, efficiency, and longevity. It prevents overcharging, overheating, and other potential issues, guaranteeing optimal system operation.

4.3 Power Conversion System (PCS)

The PCS is responsible for converting the DC power stored in batteries into AC power suitable for use in commercial and industrial settings. It also manages the integration of renewable energy sources and the grid.

5. Unlocking the Potential of C&I Energy Storage

The SolaX TRENE series C&I energy storage cabinet is an advanced, all-in-one solution designed for diverse energy needs.

One of the standout aspects is its flexible adaptability, offering both grid-connected and off-grid support, which ensures it can be deployed in a wide range of environments and regions with varying energy infrastructures.

Additionally, its high reliability is a major attraction, featuring four-level fire safety protection, IP66-rated inverter durability, and LiFePO4 battery cells, making it highly suitable for challenging environmental conditions.

For large-scale users, the scalability up to megawatt-hour capacity offers unparalleled energy storage potential. Managed through the SolaXCloud, it enables Dynamic Power Management, allowing real-time grid export adjustments to optimize energy distribution.

This combination of flexibility, safety, and intelligence makes the system a perfect choice for those seeking a reliable, future-proof commercial and industrial energy storage solutions. Choose SolaX for sustainable energy solutions.

The company is the world’s best commercial energy storage systems supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.