Storage with savings or a short-term lease can lower overall energy spend and help customers cut costs, which is essential as they move forward.
FREMONT, CA: Affordable and flexible electricity storage innovations are set to catalyze transitions to clean energy worldwide, enabling cleaner electricity to penetrate a burgeoning range of use cases. However, such as solar and wind, battery storage’s future evolution depends on innovations beyond enhanced technologies and manufacturing-related economies of scale. The dire need for innovation to lower storage costs and make it more readily available to the commercial and industrial space, customers that could directly benefit from its deployment. Addressing these often-overlooked areas will be a vital component of unlocking the transformational potential of storage.
One latest solution that addresses these challenges and offers peak energy management benefits, independent system operator market participation, lower demand charges, and enhanced resilience that storage can offer comes from an energy lease program. By combining technical expertise and access to high-quality, low-cost equipment, the lease allows C&I customers to benefit from a customized storage system with minimal upfront capital and operating expenses and no technology-selection risk.
Agencies seek to take advantage of the non-wires alternatives that front-of-the-meter storage offers can also benefit from a short-term lease that doesn’t need going through the complicated and time-intensive approval process typically needed for capital expenditures. Besides the lease program, some companies offer C&I customers a guaranteed savings program under which the company designs, installs, owns, and operates a storage system for a minimum of five years. In exchange for offering access to their facilities, C&I customers get guaranteed financial savings on their utility costs. If those savings are not realized, the company compensates customers for any shortfall.
The potential to improve resilience and economics would make storage attractive to the companies, developers, and utilities to access it in an easy and financially attractive means. But the realities of a post-COVID-19 economy in which companies required to lower costs to rebound could increase demand for storage.