Cutting Costs & Carbon: The Business Case for Solar + Battery Storage

As energy bills continue to soar, savvy business owners are increasingly aware of the need to consider sustainable energy solutions. A pairing that is becoming more and more popular is solar panels and battery storage systems. These technologies not only help companies reduce their carbon footprints but can also lead to significant cost savings over time. However, navigating the costs associated with solar panel and battery storage installations can be daunting.

In this post, we’ll break down the costs for an average battery system for a small to mid-sized business and explore how VEST Energy can help make the transition seamless and financially viable.

The Cost of Battery Storage for Businesses

When considering the installation of a commercial battery storage system, businesses need to account for several factors, including the type of battery, installation costs, and ongoing maintenance. Here’s a detailed breakdown of the costs associated with battery storage for small to mid-sized enterprises (SMEs).

1. Initial Purchase Costs

The initial costs of battery systems can vary widely depending on the technology used and the capacity required. For small to mid-sized businesses, a lithium iron phosphate (LFP) battery system is often the most efficient and cost-effective choice. Here’s an estimated breakdown of the costs:

• Battery System Cost: The average cost of a commercial lithium-ion battery system ranges from £5,000 to £20,000 for a capacity of 10-20 kWh, which is generally suitable for most SMEs.

• Inverter Costs: An inverter is necessary to convert the stored DC power into AC power for business use. Inverters can range from £1,000 to £5,000, depending on the system size and efficiency.

• Installation Fees: Installation costs can vary, but on average, businesses should budget around £1,500 to £3,000 for professional installation services.

Estimated Total Initial Costs

When you combine these elements, the total initial investment for a battery storage system might range from £7,500 to £28,000.

2. Ongoing Costs

While the initial investment can be significant, it's essential to consider the ongoing costs associated with battery systems:

• Maintenance Costs: Regular maintenance is necessary to ensure optimal performance. Expect to spend approximately £200 to £500 annually on maintenance.

• Replacement Costs: Lithium-ion batteries typically have a lifespan of 10-15 years. Businesses should plan for replacement costs in their long-term budgeting, which could range from £5,000 to £20,000 when the time comes.

Long-Term Cost Benefits

Despite the upfront investment, the long-term savings associated with solar panels and battery storage can be significant. According to research from the Solar Trade Association, businesses that utilize battery storage alongside solar panels can save up to 50% on energy bills. This savings, combined with potential revenue from selling excess energy back to the grid, makes the investment in battery storage increasingly attractive.

VEST Energy: Your Partner in Solar and Battery Storage Solutions

Navigating the complexities of solar panel and battery storage installations can be overwhelming, but it's our mission to simplify the process. Here’s what we do to make the process straightforward and easy for you:

1. Tailored Solutions

We offer personalized energy solutions, assessing your business’s unique energy needs before recommending an appropriate battery storage system. Our focus on customization ensures that businesses can maximize their energy savings and efficiency.

2. Access to Multiple Revenue Streams

We are unique in the battery storage market in that, when working with us, businesses can gain access to various revenue streams. By integrating battery storage with solar panels, companies can benefit from:

• Self-Consumption: Use stored energy during peak demand times to lower energy costs.

  
  

• Wholesale Trading: Earn money by buying and selling energy to the grid.

  
  

• Grid Services: Participate in grid support initiatives to earn additional revenue during peak demand periods.

3. Partnership with BYD for Quality Batteries

We are proud to have exclusively partnered with BYD, a global leader in battery manufacturing, to provide top-quality lithium iron phosphate batteries. This partnership ensures that businesses receive reliable, efficient, and safe battery solutions that can significantly enhance their energy systems.

4. Comprehensive Support and Optimization

We don't just stop at installation. We offer ongoing support, including:

• Monitoring and Analytics: Advanced monitoring systems to track energy generation and usage patterns.

  
  

• Predictive Maintenance: Regular assessments to ensure optimal performance and reduce downtime.

This continuous support helps businesses adapt to changing energy demands and maximize their investment in renewable energy.

Conclusion: A Wise Investment for the Future

We are acutely aware that investing in solar panels and battery storage is a significant decision for small to mid-sized businesses, but the long-term benefits often outweigh the initial costs. By understanding the financial implications and choosing a reputable partner like VEST Energy, businesses can navigate this transition with confidence.

With tailored solutions, access to multiple revenue streams, and high-quality battery technology, we know that we are well-positioned to help businesses thrive in the evolving energy landscape. Embracing renewable energy not only enhances sustainability efforts but also contributes to cost savings and energy independence.

Ready to take the next step toward a greener future? Get in touch today to learn how we can unlock the full potential of solar power and battery storage for your business!

References

1. Solar Trade Association. "Battery Storage: The Next Step for Solar Energy." www.solar-trade.org.uk.

2. BYD Company Limited. "About BYD Battery." www.byd.com.

3. VEST Energy. "Unlock BESS: Essential Terms Explained Simply." www.vest.energy.