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Your Position: Home - Energy - The Top 5 Practical Questions We Get Asked About Battery Storage

The Top 5 Practical Questions We Get Asked About Battery Storage

Author: Liang

Mar. 07, 2024

Energy

As interests for renewable energy solutions continues to grow, battery storage has become a popular topic in the energy sector. As covered in part 1, by combining solar with batteries, businesses can enhance their energy efficiency, reduce reliance on the grid, and optimise their energy usage.
In this article, we're diving deeper into the world of battery storage by addressing the top 5 practical questions we frequently encounter.

1. How Does Commercial Battery Storage Work?

Commercial battery storage takes electrical energy from the grid or solar panels and stores it as chemical energy in batteries. This stored energy can be discharged back into the electrical system when required, providing businesses with greater flexibility and control over their energy usage.

Essentially, the battery is connected to the facility's switchboard. The power from the switchboard, whether from solar panels or the grid, is directed to the battery inverter, which converts it to DC power for storage in the battery cells. When the energy is needed, the process is reversed, and the DC power is converted back to AC power before being fed back into the switchboard to power the facility.


2. What is the lifespan of a commercial battery?

The lifespan of commercial batteries depends on various factors, such as battery chemistry, usage patterns, and maintenance practices. Generally, lithium-ion batteries can last anywhere from 10 to 15 years. Their longevity is attributed to efficient cycling, averaging up to 10,000 lifetime cycles. In contrast, lead-acid batteries have a shorter lifespan, typically lasting between 500 to 1,200 cycles.

Battery warranties are often indicative of their expected lifespan, as they typically specify the number of cycles and calendar years. Lithium-ion batteries usually come with a 10-year warranty. In our experience, it is advisable to plan for a battery changeover around the 12th year. This approach allows for an additional two to three years of use after the manufacturer's warranty coverage before replacement is necessary.

 

3. What

Configuration of Commercial Battery Storage Should Suit My Needs?

The versatility of commercial battery storage is evident in its various configurations, tailored to suit different energy needs. Four common configurations are:

  • Simple battery storage

    : This is the most basic configuration for connecting a battery to your site. The battery will charge using your site's electrical supply (grid energy) during off-peak or low-rate times and discharge through peak or high-rate times.
  • Hybrid Systems

    : These systems combine solar panels and battery storage with the grid, creating a dynamic synergy. During periods of ample sunlight, excess energy is stored in the batteries, ready to be tapped into during nighttime loads or peak demand periods.
  • Backup Capability

    : Battery storage can serve as an emergency power source during grid outages, ensuring critical operations continue uninterrupted. This capability is especially valuable for businesses where even momentary power disruptions can result in significant financial losses.
  • Off-Grid Systems

    : Off-grid configurations are deployed in locations where connecting to the main electrical grid is either impractical or cost-prohibitive. Commercial entities, particularly in remote areas, can rely entirely on battery storage or a combination of renewable energy sources, such as solar and bio-diesel or waste-to-energy generators, to deliver 100% of their energy consumption.

4. How Much Space Will I Need for Battery System?

When considering commercial battery storage systems, space is a crucial factor to take into account. Generally, a commercial battery has a compact design resembling a tall fridge. For instance, a 100-kilowatt-hour storage capacity would occupy a space of approximately two meters in height, one meter in width, and one meter in depth.

Lithium-ion batteries, commonly used in commercial applications, offer several advantages contributing to their space efficiency. These batteries have a wide temperature operating range, typically between 0°C to 38°C, making them suitable for outdoor installations.

Moreover, lithium-ion systems are more energy-dense than lead-acid batteries. Energy density refers to the amount of energy (measured in kilowatt-hours) that a battery can store per unit of weight. So, a battery with a higher energy density—able to store more energy per unit of weight—will occupy less space while delivering the same or even greater energy storage capacity, making them ideal for commercial setups with limited space availability.

 

5. What Risks Need to Be Minimised?

As with any technology, there are various safety considerations that should not be overlooked. The following risks should be addressed when considering a battery storage system:


  • Weather Damages

    :
    Outdoor installations are susceptible to harsh weather conditions like hail, flooding, heatwaves, or fire. Proper design and testing are necessary to ensure batteries can withstand such elements. For example, additional cooling measures may be necessary if your site is located in hotter climates.
  • Overheating

    :
    Batteries being a lithium chemistry, typically can burn very hot and very long during charging and discharging processes. If they also misbehave electrically, it could cause issues on the site in terms of breakers tripping or harmonics or things not happening the way they should. Proper ventilation, thermal management systems, and monitoring of battery temperature can prevent overheating and ensure safe operation.
  • Overcharging

    :
    Overcharging can lead to battery degradation, reduced lifespan, and safety hazards. Implementing battery management systems with overcharge protection and following manufacturer guidelines for charging can prevent overcharging incidents.

 

So, Are Solar Batteries Right for You Now?

Commercial battery storage systems offer businesses a range of benefits, including energy optimisation, enhanced reliability, and reduced costs.

By capturing and storing excess solar energy, businesses can increase their energy independence and contribute to a more sustainable future. However, it's crucial for businesses to understand how commercial battery storage works, consider the lifespan of batteries and mitigate potential risks associated with storage.

By following proper guidelines for safe storage and maintenance, businesses can maximise the benefits of commercial battery storage and make informed decisions regarding the adoption of solar batteries.

You can also read the latest news and find out what’s happening in the commercial solar space at Smart Insights.

Thinking of getting a solar-powered battery for your home or business to protect you from the next power outage? Here’s six tips to help you figure it all out. For deeper dives:

Solar-powered batteries can let you keep — and use — all of your solar energy

Depending on its size, a battery storage system installed at your home or business stores all that extra solar energy you make during the day. When the sun goes down, you use the energy from the battery, not the utility.

Explore more:
What is a generator good for?
Harnessing the sun: The rise of solar roof tiles in Australia
How to start a business in Washington, DC
Tips Before Buying a Solar Battery
Does charger affect performance?
Is investing in EV charging stations a good idea?

Solar-powered batteries

can keep your power on during the next power outage

A solar-powered battery lets you keep your most important appliances and lights running during a power outage.

Solar-powered b

atteries are getting cheaper and better

The price of batteries is falling, utilities are increasing evening rates, and some incentives are available.

But as always, do your homework before making the investment.

1. What is your reason for getting solar-powered battery?

Are you affected by increasing “Time of Use” evening rates?

Recently, the utilities began raising rates in the evening. If this is causing your electricity bill to increase a lot, you may be a good candidate for adding battery storage.

However, this also depends on how much electricity you use in the evening. If you don’t use much, then you may not be affected much by increasing evening rates. 

Are blackouts or Flex Alerts a big concern for you?

If these events cause serious problems for your household, then batteries might be a worthwhile investment.

2. Determine if you are eligible for the state and federal incentives

Federal tax credit

You may be eligible for a federal tax credit of 30% the cost of a battery system. If you do not have an income, you may not be eligible for this credit. Learn more about how to claim the Federal ITC. 

State rebate

California offers a rebate for a portion of the cost a battery storage system, if you are considered by the state to be either low-income or with special medical needs, and will use the battery for daily energy use, not as a backup. A good installer will be able to help you determine your eligibility, and will also handle the rebate paperwork. Details about the Self-Generation Incentive Program.

3. Which net metering program are you on?

Getting a battery can have a different value depending on if you are on the older versions of net metering (NEM1 or NEM2), or the new program (NEM3). While NEM3 overall made getting solar more expensive, it does increase the compensation you get for sharing the extra energy stored in your battery.

Getting a battery won’t change your net metering status. But knowing which NEM program you are on can make a difference in calculating your return on investment. A good solar installer should be able to explain this clearly to you.

4. Noodle around the internet to get a sense of what kind of battery products are out there

Check out the websites of some of the leading battery installation companies. EnergySage has a buyers’ guide that can help. Solar Rights Alliance does not provide product endorsements.

5. Get an estimate from the company that installed your solar system. 

If you already have solar, give your installer a ring and ask if they also install battery systems. If they do, have them come out and give you an estimate.

In many cases, only the company that installed your solar system can install the battery. That’s because putting in a battery requires some modifications to your solar system. Your solar company can only really honor the warranty on our solar system if they can be assured that they are the ones making modifications.

This isn’t always the case, so read your warranty to be sure and check with your solar company.

If your solar company is no longer in business (and was not taken over by another company), or you are dissatisfied with the work your original installer did, then you might consider reaching out to other solar companies. If you do, it’s good to keep this in mind:

  • Get three bids at minimum.

  • Make sure the company’s contractor license is in good standing, with no pending actions. Look up a contractor

  • Make sure the installer has experience with battery storage, or has been doing solar installations for awhile.

  • Make sure the installer is a member of CALSSA , the state solar industry association.

  • Make sure the installer is certified by NABCEP.

6. Expect some delays and complexity

Barry Cinnamon, owner of Cinnamon Energy Systems and host of The Energy Show podcast says that installers should provide accurate estimates for the installation of a battery storage system and prepare customers for some possible uncertainties:

  • Delays:

     The utilities often slow-walk the process of interconnecting your new storage system to the grid. And the state is often slow in cutting your storage rebate check. 
  • Electrical wiring issues:

    Wiring the backup subpanel and connecting some of the parts to your electric panel can be tricky and expensive depending on the location of circuits in the house and the age of your electric system. Installers should provide an accurate estimate for this work.
  • Your payback period:

    Remember that your energy habits may change over time, and your installer’s estimate relies on your current habits. 

Got other tips and advice to share with your fellow solar people? Send us a tip to [email protected].

More reading

The Top 5 Practical Questions We Get Asked About Battery Storage

Six tips for buying a solar-powered battery

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