Since fossil-fuel generators also work counter to their sustainability goals, businesses have been looking at how renewables can support their resilience objectives. Solar- or wind-only strategies cannot address the full scope of the problem since availability isn’t always guaranteed when businesses need it. With the right combination of technologies – specifically solar+storage – businesses can make significant strides in ensuring continuity and reducing losses associated with outages, with an added bonus of cost savings over time and potentially participation in new energy markets.
Because some renewable energy technologies – such as wind and solar – have variable outputs, storage technologies have great potential for smoothing out the electricity supply from these sources and ensuring that the supply of generation matches the demand.
Microgrids are local energy grids that can disconnect from the traditional grid and operate autonomously. Microgrids have the ability to strengthen and reinforce the traditional grid because they can function even when the main grid is down and are optimal for integrating renewable sources of energy. The grid connects homes, businesses and other buildings to central power sources, which allow us to use appliances, heating/cooling systems and electronics. But this interconnectedness means that when part of the grid needs to be repaired, everyone is affected.
This is where a microgrid can help. A microgrid generally operates while connected to the grid, but importantly, it can break off and operate on its own using local energy generation in times of crisis like storms or power outages, or for other reasons. A microgrid can be powered by distributed generators, batteries, and/or renewable resources like solar panels. Depending on how it’s fueled and how its requirements are managed, a microgrid might run indefinitely.
However, energy storage technology accounts for the highest cost in developing a microgrid, yet is the least understood component and tends to be the most poorly integrated. If batteries and microgrids could interact at a higher efficiency, new possibilities could arise for the future of energy distribution.
While significant progress has been made through federal and state incentive programs that have helped drive down the costs of deployment, there is still so much to be done to chart a path toward a clean energy future. At the moment, many consumers are paid through a feed-in tariff system. Most consumers receive a payment based on how much electricity they generate and are assumed to use at home, rather than the amount they actually export. This practice is called ‘deeming’, and for most it is set at 50% of total generation. So, if you can store some of that surplus electricity and use it at another time when you need it, you will still get paid the same for your export but will spend less on electricity bills for your import.