A report conducted by Bloomberg New Energy Finance and McKinsey & Co. has found that the cost of the average battery pack has decreased by 65% since 2010. This statistic has a significant bearing on predictions for the energy storage industry; Bloomberg has estimated that the global energy storage market will reach or exceed $250 Billion by 2040. New legislation is being created across the globe that mandates the construction of grid energy storage components for new project builds, and as such, it seems as though energy storage will soon be a ubiquitous tool for cost savings and environmental sustainability.
But for many businesses in Ontario seeking operational cost reduction measures in the face of sky-high electricity prices, the upfront investment necessary for the implementation of a grid scale electricity storage program can be daunting. Some common financial barriers to the adoption of a grid energy storage system include:
How much capital is required to purchase the battery grid storage technology?
How many new team members are needed to build, monitor, and maintain the grid storage system?
Equipment rental, additional labour, and building permits all factor into the upfront costing of a new grid energy storage system.
What will it cost to insure the grid storage technologies?
The significant capital outlay associated with the purchase, construction, and maintenance of a power storage solution can create doubt as to whether the investment will truly pay off in the end. Sure, you’ll be benefitting from monthly electricity savings, but do the savings outweigh the capital outlay?
ESaaS: Energy storage without capital outlay
It’s for this reason that Constant Power has developed a new solution to the challenges of implementing a grid storage system. It’s called Energy Storage as a Service (ESaaS). ESaaS customers pay an affordable, flat monthly fee for their grid energy storage program, through a total service model. Participation in the program results in a 50% reduction in annual energy spend. With ESaaS, Constant Power covers:
ESaaS customers reap all the benefits of grid battery storage, without having to invest any capital outlay. ESaaS delivers a custom-made energy storage program that stores electricity during low demand periods, and then reintroduces this stored electricity during periods where the prices are the highest. ESaaS also increases the quality of power being provided, as it controls PQ at all times, even when the system is not in storage mode.
ESaaS represents a brand new business model within the energy storage sector, one that provides all the benefits of grid battery storage without any of the risk. Not only does Constant Power handle all financing and operational processes, but also all responsibility for the functioning of the system itself. In the event that the system fails or does not operate, Constant Power reimburses the customer for any lost savings incurred during the down period.
Why invest the capital when Constant Power could do it for you?
Contact the team at Constant Power to learn more about how ESaaS can help you make a smarter investment in your company’s electrical energy savings strategy.
 The Motley Fool, “Falling Battery Prices will Open up a World of Innovation”, http://www.fool.com/investing/2016/10/26/falling-battery-prices-will-open-up-world-of-innov.aspx
 PV Magazine, “Energy Storage Market to Grow to USD250 Billion by 2040”, https://www.pv-magazine.com/2016/06/13/energy-storage-market-to-grow-to-usd250-billion-by-2040_100024952/
 Ramez Naam, “Why Energy Storage is About to Get Big- And Cheap”, http://rameznaam.com/2015/04/14/energy-storage-about-to-get-big-and-cheap/