Battery Energy Storage: The Modern Replacement for Backup Generators
Business operations in today’s market are uniquely daunting. Faced with a volatile energy market, an oftentimes unreliable grid, and increasingly strict regulations on emissions, businesses have to navigate a maze of challenges. For businesses that require automated or continuous power to maintain operational efficiency, managing these challenges can mean the difference between making or breaking their bottom line. For backup power, battery energy storage is the modern replacement for (or supplement to) generators, offering the same backup reliability, with added cost savings and flicker-free power.
Shortcomings of Backup Generators
While backup generators have long been a reliable means of ensuring a business can maintain continuous operation, there are reasons to consider alternatives. For starters, the technology is simply dated - in order to stay competitive in the modern economy, businesses should utilize modern technology. Generators are unable to provide continuous power in the event of an outage, which makes them an unreliable source of backup power. In the case of an outage, generators require startup times that contribute to power gaps and operational downtimes. If a back-up generator does not kick on during an outage, sectors with continuous operations like refrigeration, manufacturing, or data centers could be forced to throw away products as waste or restart servers. This could equate to hundreds of thousands - even millions - of dollars in lost revenue, impeding entire supply chains from continuity.
Since generators are only a back-up, and are thus “out of sight, out of mind,” they typically do not receive the expensive maintenance they regularly need. For example, units with their own internal power source often fail to turn on when they are most urgently needed, because expensive maintenance was not conducted.
In addition to the shortfalls above, they are an additional source of emissions, which can complicate regulatory compliance for businesses just trying to keep things running to keep their doors open. As increased focus is put on emissions reductions, companies must reconsider how they power their operations. In the case of power outages, which are becoming more common as wildfires and heat waves ravage grids across the country, fuel-driven backup generators only contribute to the problem. In states like California, where logistics companies and large warehouse operators are subject to emissions regulations, fuel-driven backup power only works against them.
Enter: Battery Energy Storage
Businesses with continuous or automated operations have options, however, thanks to modern technology and valuable governmental incentives. Battery energy storage presents an alternative to backup generators by providing a secondary source of flicker-free power.
How does it work?
Battery energy storage is essentially exactly what it sounds like: a battery that stores power for the times a business needs either supplemental or backup power. By integrating a battery energy storage system with its energy profile, a business gains a reliable source of energy that requires zero startup time, emits zero emissions, and can even help cut utility costs by supplementing demand when it peaks.
Solar + Storage = Dream Team
Businesses that combine solar with a battery energy storage system can benefit from clean, emissionless solar power, in addition to backup power from the battery. These two systems work in tandem to provide continuous operations companies (manufacturing, healthcare, logistics, data centers) with reliable, clean power to increase their energy efficiency, grid independence, and cost-effectiveness.
What are the benefits?
Zero emissions: A battery energy storage system emits zero emissions. This allows businesses to incorporate an additional source of power, without increasing their carbon footprint. In an increasingly regulated market, this is crucial for businesses coping with Scope reporting and programs like WAIRE in California.
Flicker-free power: Unlike a backup generator, an energy storage system is always readily available. That means if power goes down, a business can seamlessly transition to its battery system for continuous power. That means businesses don’t have to throw away products on the line or restart crucial continuous systems.
Reduced operating costs: By providing supplemental power during periods of high demand, a battery energy storage system can help to reduce demand charges. Demand charges are related to a company’s highest period of demand, and are often the highest charge on their utility bill. By supplementing their demand with power from a battery, businesses can reduce the amount of electricity they draw from the grid, lowering their demand charge.
Leverage the ITC
The Biden Administration passed the Inflation Reduction Act (IRA), which included massive investments in clean energy technologies. Among these are the Investment Tax Credit (ITC), which businesses can leverage to write off certain installation costs for clean energy technologies. Battery energy storage systems qualify as a clean energy technology, and are thus eligible for as much as 50% off through the ITC.
Partner with Promise
Navigating the renewable energy transition demands a strategic approach. With the support of Promise Energy, businesses can streamline compliance efforts, embrace sustainability, and position themselves for success in a rapidly evolving regulatory landscape. Partner with Promise Energy to unlock the benefits of sustainability-driven practices and pave the way towards a greener future.
Contact Promise Energy at info@promiseenergy.com for a complimentary energy evaluation of your facility.
At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.