The Role of Energy Storage in Connected Microgrid Systems

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Typically, microgrids integrate multiple renewable energy resources like solar and wind energy and energy storage. Catalyst Power’s Connected Microgrid is an on-site solar solution we install on your property using a combination of custom-sized solar panels and add-on battery supply (that’s optional). As our premier product, it embodies all four pillars of our company’s values: immediate savings, budget certainty, outage protection, and positive environmental impact. 

Yes, our Connected Microgrid solution will save your business money on energy costs, but one of its best features to consider is its energy storage potential. No need to ask about the price—you can skip the upfront costs since we build, own, and operate everything for you! 

This kind of technology plays a key role in a Connected Microgrid system. Energy storage, also known as battery storage, supports the day-to-day activities of your energy consumption and maintains a more sustainable grid. It’s how we protect our grid during unexpected changes and high demand. The Connected Microgrid uses energy storage (batteries) to optimize the use of renewable energy resources (like solar) and can discharge the energy you generate on-site from the solar panels, at a time when the supply is needed.  

Energy storage is fundamental to the operation of our Connected Microgrid since it can compensate for variations in energy generation to meet demand fluctuations. It increases the reliability of the Connected Microgrid! 

Technically, battery technologies allow commercial customers (that’s you) to purchase excess electricity during non-peak periods by charging batteries located on their property overnight. That excess electricity is then used during daily peak periods by discharging the batteries. The additional electricity is your energy storage working for you around the clock.    

Most commercial customers’ utility bills are primarily affected by the maximum number of kilowatt hours purchased during the monthly billing period. By using the excess electricity purchased overnight during higher kilowatt hours (daytime), the kilowatt charges on your utility bill can be lowered, and that can reduce your business’s monthly bills significantly.  

In addition, electricity supplier costs are based on hourly pricing offered by electric system operators.  System operator costs are normally lower during overnight hours and higher during the day. By increasing electricity purchases overnight and decreasing electricity purchases during the day, your overall supply cost will decrease.  See where your immediate savings come in? 

So, let’s recap: the role of energy storage in the Connected Microgrid is to absorb the renewable energy being produced on-site and reduce your energy costs. Energy storage charges when electricity rates are at their lowest, and discharge to avoid paying peak prices during more expensive times of the day. 

You get to claim environmental, social, and governance (ESG) goal achievement all while cutting your energy costs. Now that you know how this works, contact one of our energy experts to get your business connected and on its way to a cost-effective, clean energy future. 

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Bill Kinneary is Catalyst Power's Executive Vice President of Project Development. Bill has over 20 years in retail energy and extensive experience in energy supply solutions. Read more about Bill here.