Attention High Electricity Users: Cut Your Bill with Funded Batteries

Is your business is a high electricity user? If so you could benefit from funded battery storage, enabling you to reduce your electricity bill by avoiding peak time electricity surcharges (TRIAD charges and Red Band DUOS charges).

Do you have:

• an import connection sized at 1000kVA plus;
• a minimum base load of 500kW and / or potential for an export connection;
• a long-term (10-15 year) intention to utilise your premises (and maintain current load) and a satisfactory credit history?

If the anwer is yes, you could reduce your electricity bill by installing battery storage, funded by an investment fund. The investment fund will discharge the battery to reduce your electricity use in peak times. It will also use the battery to earn income from the National Grid for providing grid balancing services.

How it works

We install a 1MW+ sized battery (energy storage system) at your premises, for a period of 10-15 years. The installation and maintenance costs of the battery are fully funded by our investment partner.

The installation is covered by a service agreement between the investor and yourself (assumed to be the site owner, or the electricity bill payer if the site is on a long lease).

You receive one or more of these benefits:

• use of the battery for peak charge avoidance (TRIAD charges, DUOS charges - download our fact sheet for more information);
• where required, a UPS back-up for essential supplies, e.g. emergency lighting;
• voltage optimisation equipment to lower usage and bills, where it would be of financial benefit.

The investor receives:

• income from the National Grid for providing ancillary services such as Firm Frequency Regulation (FFR);
• some share of on-site benefits provided by the battery, or a rental for the battery.

Case study

An industrial premises has a 1,200kVa supply with a base load of 500kW.

After successfully applying for an export connection, a 1MW / 1MWh battery system is installed, housed in a 40ft container on site. The battery is used for peak charge avoidance to reduce the site owner's electricity bill, and to provide services to the grid to generate income for the investor. There is a small UPS requirement for 100kW for one hour, requiring reserve capacity of 100kWh at all times. This is expected to save an hour of lost downtime (costing the company £2,000 per hour) three times per year. 

The estimated annual savings, income and running costs are as follows:

Of course, if the site owner prefers, they can fund the system in full and receive the grid income themselves. However, tendering for National Grid contracts is a specialist area and the grid income is by no means guaranteed. Funded storage allows the site owner to keep their focus on their core business, whilst reducing their electricity bill with battery storage.

For more information

If you would like more information, please call us on 0118 951 4490, or email commercial@spiritenergy.co.uk.

You may also be interested in our funded storage fact sheet: