How Battery Storage Can Save Your Money

Battery storage plays a critical role in replacing fossil fuels with renewable energy.

Time: 2022-12-20 09:00:00

Battery storage saves you money

Batteries are energy storage devices. They are electrochemical devices that store energy from the grid, power plant, or any other energy source and then discharge it to provide electricity or grid services such as peak shaving and load shifting at the appropriate time.

Battery storage systems are rechargeable components that store energy from solar arrays or electric grids and provide the stored energy to a building or home. They are essential components in electric vehicles, off-grid, and renewable energy systems. Battery storage plays a critical role in replacing fossil fuels with renewable energy.

There are many battery types, but lithium-ion battery is the most common.  Compared to other battery types, it is durable, compact, and has a long lifespan with a high depth of discharge (DoD) Lithium-ion batteries are used in mobile phones, electric cars, and large-scale plants.

Franklin Home Power is a home energy management system with an LFP AC-coupled battery that provides reliability and sustainability for energy storage. With Franklin Home Power, you can plan future electricity use in your home and save costs on electricity bills. Franklin Home Power comes with a 12-year warranty and an electric storage capacity of 43Mwh.

There are various ways battery storage can help in saving money; these include: 

Renewable Energy Use

When it comes to solar or wind farms, there is no guarantee of constant energy production. During periods of high demand and low energy supply, alternative energy sources may incur financial costs that may be heavy on energy users.  

To prevent unplanned expenses that may arise due to a decline in renewable energy production, excess energy is stored in a battery and sold during peaks in energy demand. This battery storage provides the opportunity to maximize electricity sales and improve the return on investment in energy generation assets and grid connections.

High Electricity Demand

Periods of high demand in energy consumption are usually challenging for grid operators and large energy users, as electricity tends to be sold at high prices during this period. Battery systems enable users to cut expenses in electricity bills by switching to stored energy when peak tariffs apply. This is prevalent in electricity markets such as that covered by the New York Independent System Operator, where peak energy use incurs huge costs.

Microgrid Energy Generation

Microgrids are small grids designed to function autonomously and independently without connection to other grids. Most microgrids leverage renewable energy sources from solar panels and wind turbines to generate electricity for their users. It is crucial and economical for microgrids to have a source of backup power, like battery systems, when solar or wind energy declines. Also, diesel generator sets or other thermal units that complement renewable sources in microgrid energy generation need battery banks to store electricity and deliver it when required. This is a cleaner and cheaper option over the long term.

Frequency Regulation

For smooth operation of the electric grid, the alternating current has to stick to a particular frequency; for instance, in America, it is 60 Hz, while in Europe and Asia, it is 50 Hz. In thermal plants, the rotating mass of turbines determines the frequency of electricity.

However, the frequency can be much more challenging to stabilize in grids where wind and solar are the dominant energy generation sources. But battery storage systems help regulate the frequency with millisecond-long discharges in such grids. It is a very effective carbon-free solution as it reduces costs associated with grid frequency regulation.

Energy Reserve

To ensure maximum energy production, many grids use diesel or gas generators as a backup power supply when the thermal plant fails.

However, this is not economical, as it consumes more fuel, creates emissions, and requires additional capital and maintenance costs. But all of these can be avoided when batteries are used instead. Battery systems not only save cost in ensuring the grid operates at maximum capacity but can be configured to be automatically switched into use whenever there is a power outage.

Tax Incentives 

Solar batteries qualify for State and Federal incentives, depending on installation methods and modes. The primary incentive currently available for batteries is the Federal incentive, which is now at 30% with the Inflation Reduction Act (IRA) signed into law.

That means 30% of your total solar and/or battery project cost can be claimed as a tax credit, and the battery does not need to be part of a solar PV system to be considered for the tax credit.

Franklin Home Power

Battery storage systems play a significant role in providing reliable and cheaper electricity in various homes. The US government estimates that battery storage technologies will save the US energy system up to $20 billion by 2040, with home energy usage constituting a significant percentage.

With Franklin Home Power, you can minimize the risk of costly and dangerous power interruptions. Our resilient commercial energy storage solutions can be used to manage demand charges and load factors, reduce operating costs, participate in revenue-generating programs such as demand response and frequency regulation, increase productivity, and even increase the value of a property.

Leveraging on our deep expertise and experience in the energy storage industry as well as our flexible product configurations, we are positioned to transform the energy use of your asset. Our products are durable and of superior quality.

Franklin Home Power also has various impressive features such as modular design, easy installation, bill saving, solar black start, generator backup management, smart circuit management, convenient capacity increase, etc. It also enables ultra-fast charging which makes it fully charged within a short time and can operate effectively at both high and low temperatures.