Benefits

There are multiple revenue-generating and cost-saving benefits that building owners and site managers can take advantage of through energy storage. Specifically, energy storage systems can lower a building or facility’s electric bill and reduce reliance on the electric grid during the most expensive peak times of the day, while providing greater resilience to short-term outages.

Large Commercial and Industrial Utility Customers

If you are a large commercial or industrial utility customer, chances are that a sizeable portion of your utility bill is made up of demand charges. The demand charge is a monthly fee that you pay as part of the cost of maintaining the infrastructure required to deliver electricity to your building. On each month’s bill, the demand charge amount is based on how high your energy use peaked during the month. So, the higher your energy use has peaked, the higher your demand charge is going to be.

Energy storage helps you use electricity from the grid to charge your systems during low cost times and later discharge electricity when demand charges are higher, therefore lowering costs. This is known as peak load reduction. Customers can optimize their bill savings by switching to a time-of-use pricing rate.

Read the Fact Sheet on Demand Charges to learn more [PDF]

Read the Fact Sheet on How to Maximize Savings With Energy Storage [PDF]

Residents and Small Businesses

Only large energy users like large commercial buildings and industrial facilities pay demand changes. Residential and small commercial customers do not. Instead these charges are part of the normal energy rates on your electricity bills. Energy storage may be right for your home or small business if you’ve opted into time-of-use rates. Talk to your electricity utility for more information.

Demand Response Programs

Utilities and the New York Independent System Operator (NYISO) offer programs to customers to reduce electricity usage when demand on the network is highest. Known as demand response programs, they help avoid overload, reduce emissions, and delay expensive equipment upgrades. Large energy users can participate in a demand response program and receive payments for reducing the use of electricity from the grid during periods of highest electricity demand. These periods of extreme energy use usually occur on the hottest days in the summer.

If operated correctly, it is possible for a large commercial building, industrial facility, or other large energy user to use energy storage to lower their energy bill, while simultaneously receiving additional revenue for participating in a demand response program from their utility or the NYISO.

Contact your utility for information on their demand response programs:

You can also learn more about demand reduction and energy storage in the Behind the Meter Storage Solutions webinarLink opens in new window - close new window to return to this page..

Non-Wires Alternatives

Utilities defer or avoid conventional infrastructure investments using non-wires alternatives (NWA) to procure distributed energy resources that lower costs and emissions while maintaining or improving grid reliability. Energy storage systems are a high-potential NWA that can effectively reduce demand and delay, defer, or completely avoid the need to invest in infrastructure upgrades.

New York State’s six investor-owned utilities and the Long Island Power AuthorityLink opens in new window - close new window to return to this page. have identified, and continue to identify, specific locations for pursuing NWA. Sites you own or manage may be eligible to serve an NWA. Contact your utility or REV ConnectLink opens in new window - close new window to return to this page., which is an on-line platform with in-person events, webinars, and more aimed at bringing together technology companies and New York’s electric utilities, to learn more about serving as an NWA for your service area.

Learn more about opportunities for energy storage as NWA.