As businesses increasingly look for sustainable and cost-effective ways to manage energy, microgrids are becoming a popular solution. But is a microgrid the right choice for your business? Let’s break down the factors to consider.
1. Understanding Your Project Size
Microgrids are scalable, making them suitable for a wide range of businesses, and they can be tailored to meet specific energy needs, so whether you’re on the lower or higher end of the energy-use spectrum, a microgrid can be custom-designed to suit your specific requirements.
At SolMicroGrid, we specialize in businesses with a peak monthly demand ranging between 80 kW to 800 kW and annual consumption of 250,000 kWh to 2,500,000 kWh. This niche focus allows us to optimize and realize efficiencies utilizing a standardized, repeatable development strategy.
2. Evaluating Your Load Profile
A load profile, especially one with significant peak demand, makes a microgrid particularly advantageous. The “demand curve” illustrates how a business’s energy demand shifts throughout the day. A microgrid can help manage these fluctuations by incorporating renewable energy sources and energy storage solutions to mitigate peak demand and reduce reliance on the grid during high-cost periods.
For example, a quick service restaurant may benefit from solar energy generation and storage which can provide daily energy savings during the evening peak. A pharmacy may not have intense energy peak use times, but it may prioritize keeping certain prescription medicines refrigerated, so the resiliency provided by a generator in a microgrid is key.
3. Analyzing Your Utility Rate
A high utility rate may make a microgrid an economically attractive option. By generating your own energy or utilizing stored energy, you can reduce your utility costs and potentially lower your overall energy. The higher your utility rate, the greater the potential savings from investing in a microgrid. If your average utility rate is greater than $0.20 per kWh, you are more likely to realize cost savings and other benefits with a microgrid.
4. Customer Type and Scope
Businesses that benefit from microgrid systems include retail chain operators with company-owned, free-standing facilities with largely repeatable footprints. A uniform, free-standing retail location can incorporate a standardized microgrid design that can then be deployed at multiple locations, leveraging economies of scale to be more cost-effective and operationally efficient.
5. Technology Preferences
Solar technology can be customized to the location and can include any or all of the following types of arrays:
· Rooftop
· Ground Mount
· Parking Canopy
Rooftop solar panels are cost-effective and often preferred due to their minimal impact on existing space and infrastructure. If rooftop space is limited, ground mounts and solar parking canopies can also accommodate array capacity.
6. Customer Credit Rating
A strong credit rating enhances your ability to secure financing for a microgrid project. Lenders and investors are more likely to view your business as an attractive investment, which can lead to more favorable financing terms and lower interest rates.
7. Seeking Energy-as-a-Service (EaaS)
Energy-as-a-Service (EaaS) offers numerous benefits, including reduced operating expenses with no required capital expenditure. If your business is interested in EaaS, a microgrid can be an ideal solution, providing you with flexible, scalable energy services without any operating or maintenance responsibilities.
8. Site Control
Long-term site control is crucial for the success of a microgrid project. A commitment of 15 years or more ensures stability and supports the investment in infrastructure. This longevity facilitates the full return on investment and operational benefits of the microgrid.
9. Microgrid-Friendly States and Utilities
If your locations are in microgrid-friendly states and utility service territories, the environment will likely be supportive of your project. In California, for example, utilities like SDG&E, PG&E, and SCE are known for their supportive policies towards microgrids and renewable energy integration. This can significantly ease the interconnection process.
Microgrid-friendly states include California, New York, New Jersey, Massachusetts, Connecticut, Maryland, and Virginia.
10. Joint Ventures and Partnerships
Having microgrid developers partner with community solar providers, ESCOs (Energy Service Companies), or combined heat and power (CHP) systems can enhance the benefits of a microgrid. These collaborations can offer additional revenue streams, energy efficiency improvements, and integrated solutions that enhance overall performance. SolMicrogrid is exploring opportunities to partner with these types of energy businesses in the Mid-Atlantic and Southern New England regions.
Conclusion
By leveraging microgrid technology, you can optimize energy costs, enhance operational efficiency, and contribute to sustainability goals. If you’re ready to explore this option further, working with a microgrid company will provide a tailored solution that meets your specific needs and maximizes the benefits for your business.
