The benefits of commercial solar and commercial energy storage for Australian businesses are becoming harder to ignore. With energy contracts virtually doubling their existing rates, it’s critical for commercial business operators to investigate how renewable energy costs and options compare to traditional energy costs.
In parts 1 and 2 of our Renewable Energy Options for Commercial Business Operators and Landlords series, Richard Turner, Founder and Director of Innovation at ZEN Energy, covered the benefits that commercial landlords and businesses, both tenants and owner-occupiers, can achieve by investing in solar energy.
In part 3 below, the final part of this series, Richard Turner takes us through learning more about the two components of a commercial electricity bill, and how to integrate smart commercial energy storage to lower your electricity bills. With smart batteries that can predict energy usage, there’s more than one way for commercial businesses to benefit from this game changing technology.
How your commercial electricity bill is calculated
Your commercial electricity bill has two distinct components that can be almost equal in terms of the dollar value – the volumetric charge and the demand charge.
The volumetric charge accounts for how much power is consumed by the site direct from the electricity grid, and is normally measured in kilowatt hours (kWh) of energy. This is the component of the bill that you can manage through installing solar, as solar will reduce the overall amount of energy that the site consumes from the grid.
The demand charge is different, and is related to the size of supply needed for you to maintain activity at your business’ peak times of energy consumption. These peaks in demand can quite often occur early in the morning when machinery is starting up, or late in the afternoon or evening if a second shift is active.
Many commercial and industrial users find that a large portion of energy bill costs are due to these costly peak demand charges. In most circumstances, businesses have little control over their peak demand other than to curtail or completely stop production, significantly restricting how owners and managers can control rising energy costs.
While solar on its own will generally have some impact on these peaks in demand, it should never be relied on for such savings and shouldn’t be factored into any savings profile. However, smart energy storage changes all of this.
How smart energy storage impacts your peak demand and unlocks the true value of stored energy
By combining large amounts of stored energy from inexpensive off-peak and renewable sources with smart technology that can forecast your energy usage and optimise how the stored energy is used, businesses can use their own stored energy instead of the grid during peak demand times. These ‘peak shaving’ events give businesses complete control over their electricity usage needs from their retailer, lowering their peak demand charges and providing real relief from escalating energy costs.
Smart energy storage enables you to unlock the true value of stored energy using real-time analytics that help you make informed decisions about the time and duration of your energy use. You receive alerts when your site consumption is approaching a threshold peak, when electricity prices are rising, or if weather is likely to impact energy prices in the coming days.
This type of automation makes electrical load management a seamless part of business operations, allowing you to schedule and optimise equipment based on time of year, local climate and electricity prices.
This opportunity for smart energy storage opens a whole new range of opportunities for commercial businesses to reduce energy costs, take a firm ‘energy position’ for the longer term, and maintain or even increase their market competitiveness.
This is the future of commercial energy storage, and ZEN Energy can help businesses achieve it.
With over 10 years experience helping Australian businesses realise their renewable energy potential, ZEN Energy is at the forefront of these technologies. We have a full technology pathway from commercial solar energy and commercial energy storage through to demand management and a balance of power supply capability, so you can be confident that your ZEN Energy commercial energy storage solution is designed using the latest technology to meet your goals and requirements.
With every commercial client, ZEN offers:
QUALITY INSTALLATION, PRODUCTS, AND COMPONENTS
ZEN Energy offers not only quality products and world leading components, but also quality installation. All ZEN systems are expertly installed by Clean Energy Council accredited electricians for efficiency and reliability.
A SOLAR ENERGY SOLUTION TAILORED TO YOUR BUSINESS
ZEN Energy asks the questions others might not to make sure the solar energy solution we design for you is engineered to be fit for purpose, technically sound, and in line with your goals. Not only will your commercial energy solution be designed specifically for your site, but will also be grounded in technical knowledge, ZEN’s engineering capacity, and our years of experience across Australia.
CONSULTANTS WHO CARE ABOUT YOUR SUCCESS
Through understanding your existing and forecasted energy consumption patterns ZEN can design, install, commission, and maintain a tailored solution for your business. We pride ourselves on working transparently with our customers from feasibility through to project delivery. Our business is to focus on your energy, so your energy can focus on your business.
Get in touch to find out how your business could benefit from smart energy storage