Small Battery Systems Provide Economic Benefits

March 12, 2015

New energy storage configurations could cut costs.

Energy storage for demand-charge management can be asmart investment, according to research performed by NREL, which used the Battery Lifetime Analysis and Simulation Tool (BLAST) to pair recent utility rate structures with historical energy data on photovoltaic electricity generation and commercial facility loads. The research demonstrates that without considering the impact of incentives, small battery systems that cut peak demand by 2.5% offer the best ROI for building professionals.

Noting that demand charges can take up over 50% of a commercial consumer’s electricity bill, the NREL researchers used a Behind-the-Meter version of the BLAST system on 6,860 unique scenarios to identify energy storage system configurations that could cut costs. Small battery systems were chosen as the best choice when both ROI and payback period were considered together. The BLAST BTM-Lite tool is available online

“Batteries for demand-charge reduction are the most cost effective under today’s rate structures when configured for higher power-to-energy ratios, targeting discharge durations from 30 minutes to one hour. State or utility incentives are often necessary to make longer duration, lower power-to-energy ratio systems more attractive,” says Jeremy Neubauer, energy storage task leader for NREL.

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...