Solar is becoming more and more popular now that technology is advancing and prices are going down. One of the more recent advancements to solar is the addition of energy storage. Going solar reduces electric costs, while also cutting down on fossil fuel emissions. Adding storage capacity to these solar projects can exponentially increase their value. One way property owners can benefit from solar plus storage is increasing their energy independence. With storage onsite, property owners are less reliant on the utility companies to provide them with energy. Generating and storing electricity onsite drastically decreases transmission and delivery costs, saving system owners even more money, especially if they have time of use rates.
Another way commercial and industrial facilities can monetize solar and storage incentives is by using demand manipulation technologies. When electricity is at peak demand, the price per kilowatt-hour is also at its peak. Facilities with stored energy can sell it back to the grid during peak hours, allowing owners to get the most out of their solar plus storage systems.
Energy Storage in Massachusetts
Solar plus storage is not new to Massachusetts, but as options become more accessible, it is becoming a more popular way to get the most out of your system. Governor Charlie Baker brought the Energy Storage Initiative in 2015. This Initiative has a goal of 200 Megawatt Hours of storage, by utility companies, by January 1, 2020. While it is clearly a goal at the state level, commercial and industrial facilities are more than capable of benefiting from solar plus storage, as well. The SMART (Solar Massachusetts Renewable Target) Program, operates on a declining block tariff. This means that the sooner you are able to lock into a solar plus storage program, the better the incentives are. The longer you wait, the less value you will be able to get from your system. Another benefit of the SMART Program is that it operates under a fixed rate so system owners are able to accurately calculate their savings over a long period of time.
Commercial & Industrial Facility Options
There are three different ways that C&I facilities can take advantage of the solar plus storage opportunity. The Power Purchase Agreement (PPA) is a popular option. This choice allows property owners to benefit from the solar plus storage system as a whole, while utilizing a simple payment structure.
Next is the Hybrid PPA. This option is similar to the PPA, but is extra beneficial to those who live in areas where demand charges are high. In some Eversource regions, some demand charges can account for as much as 60 percent of the bill. The Hybrid PPA allows system owners to utilize demand charge management and make the most out of their solar plus storage system.
The third option is the Direct Purchase option. This is when someone purchases the system outright and reaps the full benefit of the system, from the SMART tariff to the electric bill savings.
Solar has come a long way from its beginnings. The future of solar is also very promising and exciting. Taking advantage of solar plus storage allows owners to reap the full benefits of owning a self powered building. For more information and to discuss options about how you can reap the benefits of solar plus storage too, feel free to schedule a call with us:
