Managing rising energy costs is a challenge for many businesses, but cutting costs doesn’t have to mean cutting corners. One effective way to lower expenses is by integrating battery storage into your energy strategy. This isn’t just about sustainability; it’s also a cost-saving tool. By adjusting when and how you use electricity, you can manage energy expenses more effectively.
By making small but impactful changes to how energy is managed, battery storage can help reduce your reliance on expensive grid power, particularly during peak times. It’s a practical way to gain control over unpredictable energy bills and maximise savings from your energy contracts.
How does battery storage work?
At its simplest, a battery storage system allows your business to store energy during cheaper, off-peak periods or when your on-site renewables generate excess power. You can then use this stored energy during peak times when grid electricity is more expensive. Think of it as banking cheap electricity for when you need it most.
While it might sound straightforward, the financial benefits can be worthwhile. Let’s break down the keyways that battery storage can make a difference to your energy bills and help you get the most out of your energy contracts:
1. Avoiding peak time charges
Energy prices fluctuate throughout the day, with peak periods often seeing the highest charges. For businesses that use a lot of power during these times, this can quickly add up. By using stored energy during peak hours instead of drawing from the grid, you can avoid these higher charges.
2. Taking advantage of off-peak tariffs
Many energy suppliers offer off-peak rates where electricity is available at a reduced rate outside of high-demand periods. By charging your battery during these off-peak times, your business can benefit from lower energy costs. The stored energy can then be used whenever it’s most advantageous, whether during the day or as a backup during peak periods.
3. Reducing demand charges
Many businesses don’t realise that a significant portion of their energy bills is made up of demand charges, which are based on the highest amount of power your business uses at any one time. This can be especially costly if your business has large spikes in energy use during peak hours.
Battery storage can help smooth out these spikes by releasing stored energy during periods of high demand, reducing the amount of grid power you need. By managing your demand more effectively, you can reduce the amount you’re charged.
4. More flexibility when negotiating contracts
When it’s time to renew your energy contract, having a battery storage system gives you more options. With the ability to reduce your reliance on grid power during peak times and manage demand more effectively, you have more flexibility in the type of contracts you can negotiate. You’re not locked into paying premium rates for energy because you can adjust your usage patterns.
5. Protecting against future price increases
The energy market can be unpredictable, and price increases are not uncommon. By investing in battery storage now, you give your business the flexibility to mitigate the impact of future price hikes. You’re less reliant on buying electricity at whatever the market dictates, as you can store cheaper energy for future use.
This future-proofing element is key for businesses looking to take long-term control of their energy costs. Battery storage allows you to lock in lower energy prices for extended periods, providing a buffer against unexpected spikes in market rates.
Is battery storage right for your business?
While the benefits are clear, it’s important to assess whether battery storage is the right fit for your specific energy needs. Not all businesses will see the same level of savings, and the effectiveness of battery storage depends on your energy usage patterns, contract terms, and capacity to invest in the technology.
However, businesses that face high peak demand charges, rely heavily on grid power, or have inconsistent energy needs throughout the day are well-placed to benefit from this technology. Before diving in, it’s worth taking a close look at your current energy use, and Troo can help assess whether battery storage is a good match for your business’s goals.
If you’re interested in learning more about battery storage, contact a member of our team at energyservices@bfff.co.uk or 0800 058 1949.
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