September 9, 2019
The term ‘as a service’ has been surfacing throughout the twenty-first century and this idea of easier, more flexible services is well and truly upon us. The idea of energy as a service isn’t very far-fetched and will ultimately offer a better type of energy storage. Energy customers can use both on and off the grid energy to ensure they only use what they need rather than constantly consuming excess energy.
The idea of energy as a service will allow consumers to benefit from the advantages of an energy storage system. Consumers will be able to enter a service agreement, without purchasing the energy storage battery itself, where the customers are able to receive energy only when needed. Energy storage systems can provide a range of services and will help generate revenue, create savings, and improve electricity resiliency. Energy as a service can provide you with backup energy, while also ensuring a more reliable electricity supply.
Energy storage as a service in today’s world makes sense because it doesn’t involve long-term ownership commitments. Today, people often move around to different parts of the world, meaning that permanent systems are not as desired — especially when they cost thousands of dollars to install. This is why energy storage as a service is a good alternative for people to receive energy efficiently. Energy storage as a service provides flexibility even when market conditions shift. When you are tied to a permanent system, things like market conditions, regulation, and value can all change. Rental customers have a contract with one supplier to help them with things like responsibility, maintenance, and performance. It’s virtually risk-free and very reliable.
Using energy storage as a service can help power homes during major storms. A single Powerwall 2.0 provides 13 kWh of power, which can efficiently power a home for a full day. Many people buy multiple energy storage systems to ensure power availability in times of need.
Despite all the good associated with energy storage as a service, there are also several concerns. Customers may worry about the battery life and whether the benefits are actually proportionate to the cost. As the sector is developing rapidly, customers may find that the technology they originally purchased becomes obsolete or outdated as newer iterations appear. Furthermore, prices may drop for some of these systems after further research and development advances the technology. On top of this, as these systems become more popular there will be more competitive pricing in the market. Faced with these potential problems, many customers grow hesitant.
Batteries tend to have long lead times, anywhere from nine to eighteen months, depending on how the market is doing. Many of the providers for storage as a service have inventories that can be delivered within as little as three months, which helps customers receive their benefits even quicker.
Storage as a service could cover anything from periods of a short few months to multi-year leases. Typically, these agreements are based on a monthly or annual fee. The terms of the contract can be manipulated and adapted to fit your needs. Customers are able to receive a guarantee of system reliability with zero asset investment. They also receive low implementation costs and one hundred percent service coverage is included. Storage as a service battery systems are available in modular capacities. These are generally packaged in standard-sized containers and stored energy would be available for several different durations depending on the application and the service listed in the contract.
Choosing energy storage as a service will give your home maximum capacity in terms of energy, while also ensuring a more reliable system. Though many of these energy storage systems are attached to solar or wind power, anyone, even those using gas, can get energy storage. However, there are incentives for using energy storage as a service while connected to solar. Switching to renewable energy resources will allow for a cleaner, more efficient system with new technology. A lot of older, fossil fuel power plants are less reliable and use older, less efficient technology. Not only that, you will save money on your electricity bill by switching over to a cleaner energy source.
To learn more about the benefits of solar-plus-storage, contact YSG Solar today at 212.389.9215.
By Kasey Liu
Sources:
https://energypost.eu/new-trend-storage-as-a-service/
https://www.powermag.com/energy-storage-as-a-service-why-renting-can-be-better-than-buying/
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