Curious about how energy arbitrage can help your project?
Energy Arbitrage Use Case Example
A gas station constantly has high grid purchasing costs from excessive power demand. Demand charge is the largest part of the bill especially when a lot of power is used in a short period of time.
- Reduction in electricity costs
- Reduction of grid electricity usage
- Short payback time
Using solar energy is a viable way to help solve the problem of power demand, and the way to use solar power system at highest efficiency is connecting it to a battery energy storage system (BESS). Though peak demand is unpredictable, the power generated by solar panel could be optimally used to respond to the peak demand conditions.
Using our advanced battery energy storage system rated at 300kWh/100kW connected to a 77kW solar power system, this setup has multiple functions. During the off-peak hours, the gas station will be powered by solar while charging the BESS system. During on peak hours, both solar and BESS are used to prevent hitting the power demand. With an initial cost of $288,600 and an electricity rate of $0.16/kWh with an assumed 8 hours of sunshine per day, the annual savings is expected to be $38,974 after a demand reduction of $3000.
*Note: Results may vary depending on location, prices, incentives and policies.