Commercial energy storage systems are rapidly gaining popularity among businesses in Orlando as a way to better manage electricity costs, improve reliability, and support sustainability goals. These systems allow companies to store energy during off-peak hours when rates are lower and use it during peak times to reduce demand charges. They also provide backup power during outages and can be paired with on-site solar for even greater benefits.
Commercial energy storage refers to systems that allow businesses to store electricity for later use. The most common type uses large banks of batteries, typically lithium-ion, to store energy. Other options include thermal storage systems that store energy as heat or cold, and mechanical systems like flywheels.
The main purpose of these systems is to shift energy use from high-cost to low-cost periods. In Orlando, where summer cooling loads drive up peak demand, this can result in significant savings. Storage also enables participation in utility demand response programs, where businesses are paid to reduce consumption during grid stress events.
A typical commercial battery storage system includes several key parts:
The size and configuration of these components will vary based on a company’s specific needs and goals for the system.
There are several compelling reasons for Orlando businesses to consider energy storage:
Many commercial electric rates in Orlando include demand charges based on a company’s highest 15-minute period of usage each month. These can make up 30-70% of a total bill. Storage allows businesses to draw stored power during peak times instead of from the grid, dramatically lowering these charges.
Brief power fluctuations and outages can be costly for businesses. Storage provides near-instantaneous backup power to ride through these events. For longer outages, it can be paired with generators to provide extended runtime.
For companies with on-site solar, storage allows excess daytime production to be used at night. This increases solar self-consumption and improves the economics of PV systems.
Utilities are increasingly offering programs that pay businesses for using storage to support grid needs. This may include frequency regulation, voltage support, or demand response.
Energy storage supports corporate sustainability initiatives by enabling greater use of renewable energy and reducing reliance on fossil fuel peaker plants.
Proper sizing is critical to maximize the benefits of a storage system. Key factors to consider include:
A detailed analysis of interval meter data is typically needed to determine optimal system size. In Orlando, sizing often focuses on managing air conditioning loads during summer afternoons.
While lithium-ion batteries dominate the market, other options are available:
Pros: – High energy density – Falling costs – Proven technology
Cons: – Thermal management needs – Finite cycle life
Pros: – Long cycle life – Easily scalable
Cons: – Lower energy density – Higher upfront costs
Pros: – Low cost for cooling applications – Long lifespan
Cons: – Limited to heating/cooling uses – Requires significant space
Pros: – Very fast response time – Long lifespan
Cons: – Limited energy capacity – Higher costs
Pairing storage with on-site solar generation can significantly boost the benefits of both technologies. This combination allows businesses to:
In Orlando’s sunny climate, solar plus storage is an increasingly attractive option for commercial properties.
The economics of storage depend on several factors:
Battery prices have fallen dramatically but still represent a significant investment. A commercial-scale system may cost $500-$1500 per kWh of capacity installed.
These come primarily from reduced demand charges and time-of-use arbitrage. Annual savings of 10-30% on electricity bills are common.
Florida offers some incentives for commercial storage, including: – Property tax exemptions for renewable energy devices – Sales tax exemptions for solar and storage equipment
Federal tax credits may also apply when storage is paired with solar.
Many providers offer no-money-down financing or shared savings models to eliminate upfront costs.
| Technology | Energy Density | Cycle Life | Response Time | Relative Cost |
|---|---|---|---|---|
| Lithium-Ion | High | 5000-10000 | Milliseconds | Medium |
| Flow | Low | 20000+ | Seconds | High |
| Thermal | Medium | 20000+ | Minutes | Low |
| Flywheel | Low | 100000+ | Milliseconds | High |
Florida’s policies around energy storage are still evolving. Key points for Orlando businesses to know:
As policies develop, they are likely to further support commercial storage adoption.
A large hotel in Orlando recently installed a 500 kWh lithium-ion battery system. The results after one year:
The system is expected to pay for itself in less than 5 years.
While storage offers many benefits, there are some challenges to consider:
Working with experienced providers can help mitigate these issues.
Several trends are likely to shape the future of commercial storage in Orlando:
These developments should make storage an even more attractive option for businesses in the coming years.
| Year | Installed Capacity (MW) | Annual Growth Rate |
|---|---|---|
| 2023 | 150 | – |
| 2024 | 225 | 50% |
| 2025 | 338 | 50% |
| 2026 | 540 | 60% |
| 2027 | 864 | 60% |
For Orlando businesses considering storage, here are key steps to take:
Commercial energy storage presents a significant opportunity for Orlando businesses to reduce costs, improve reliability, and support sustainability goals. While the technology is still evolving, falling costs and improving performance are making it an increasingly attractive option. As Florida’s policies continue to develop, the benefits of storage are likely to grow even further.
For companies looking to stay competitive in a changing energy landscape, now is the time to seriously consider how storage might fit into their energy strategy. With careful planning and implementation, storage can be a powerful tool for managing energy costs and improving resilience in the face of an uncertain future. For more information, you can visit our website or contact us.
