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How Eco-Friendly Battery Storage Can Save U.S. Businesses Major Money

By Brian Spaen

When it comes to cutting costs, many United States businesses aren’t factoring in battery storage. It’s an option that’s used primarily in high-cost areas such as New York and California, but many companies across America don’t realize that they can make the switch to battery storage and save lots of money.

Both the National Renewable Energy Laboratory (NREL) and Clean Energy Group (CEG) released a study that analyzed over 10,000 utility tariffs in the continental 48 states. Around five million businesses had a demand charge of $15 or higher per kilowatt, and they are all eligible for a utility rate tariff. These charges are determined by the highest average flow during the billing period, generally 15 minutes worth of power.

Many business don’t realize that their utility bills are divided up with a demand charge and energy charge. This means not only are they billed for how much energy they use, but they pay an additional fee of the average rate of flowing electricity in their buildings. With a battery storage facility in place, that would limit the amount of energy needed to be pulled in during peak demand. This could be up to 70 percent of the businesses’ utility bill.