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Commercial ESS 

Implementing energy storage at business can significantly reduce utility costs, allowing you to reinvest those savings into growth opportunities. By storing energy during off-peak hours, you can lower your overall energy expenses and enhance your operational efficiency. The funds saved can then be redirected expanding your services investing in new technology, or improving employee training programs. Embr energy storage not only benefits your bottom line but also positions your business for sustainable growth in the long run.

Aerial view from drone of warehouse storage or industrial factory or logistics center. Ind

How Time of Use (TOU) and Peak Demand Charges Work

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1. Time of Use (TOU) Rates

TOU rates are utility pricing structures that vary based on the time energy is consumed. Typically, electricity costs more during peak hours (high demand periods) and less during off-peak hours (low demand periods).

  • Peak Hours: Late afternoon and early evening, when businesses and households consume the most energy.

  • Off-Peak Hours: Late at night or early morning, when demand is lower.

  • Pricing Difference: Peak rates can be 2–5 times higher than off-peak rates.

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2. Peak Demand Charges

Peak demand charges are additional fees based on the highest energy usage during any short interval (e.g., 15 minutes) in a billing period. Utilities charge for the infrastructure required to meet that peak, even if it happens only once.

  • Measured in Kilowatts (kW): Not the total energy used but the maximum power drawn at a given moment.

  • Impact: These charges can account for 30–50% of a business's energy bill, even if total energy consumption is low.

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How These Hinder Business Growth

  1. Unpredictable Costs:

    • TOU rates and peak demand charges make energy expenses difficult to predict, creating budgeting challenges.

    • High peak demand events, even if infrequent, can spike bills unexpectedly.

  2. Strained Budgets:

    • Money spent on high energy bills reduces funds available for investments in growth areas like new products, marketing, or staff.

  3. Inefficient Resource Allocation:

    • Businesses are forced to modify operations to avoid high-cost periods, potentially reducing productivity (e.g., delaying tasks until off-peak hours).

  4. Risk of Operational Disruption:

    • Some businesses can't easily shift their operations to off-peak times, leaving them locked into higher costs.

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How Energy Storage Fixes the Problem

  1. Shift Energy Usage:

    • Store energy during off-peak hours when rates are low.

    • Use stored energy during peak hours to avoid high TOU rates.

  2. Flatten Peak Demand:

    • Discharge stored energy during moments of high consumption to reduce peak demand charges.

    • Lower the overall kW demand billed by utilities.

  3. Predictable Energy Costs:

    • Energy storage provides more control over energy expenses, enabling better financial planning and budgeting.

  4. Unlock Funds for Growth:

    • Savings from reduced energy bills can be redirected to profitable business activities like product development, expansion, or hiring.

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Why Energy Storage is a Game-Changer

  • Immediate Savings: Lower energy bills from day one.

  • Increased Reliability: Avoid blackouts or brownouts during peak grid usage.

  • Sustainability: Align with customer expectations for greener operations.

  • Competitive Advantage: Reduced operational costs free up resources to invest in innovation and customer experience.

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