Unlock ROI with Renewable Energy Batteries for C&I

In today’s rapidly evolving energy landscape, investing in renewable energy batteries is no longer just an eco-friendly choice; it’s a sound financial strategy that drives real returns on investment (ROI) for commercial and industrial (C&I) businesses. As organisations across sectors face increased energy demands, fluctuating utility costs, and the pressure to meet sustainability goals, renewable energy batteries offer a unique solution that combines cost savings with environmental impact. Let’s dive into why energy storage is essential for businesses looking to lower costs and improve their sustainability credentials.

The Growing Importance of Renewable Energy Batteries

The global market for renewable energy batteries is expanding rapidly. According to a recent report from Bloomberg New Energy Finance, the global energy storage market is projected to grow 20-fold by 2030, supported by increasing adoption in the C&I sector. This explosive growth highlights a clear trend: businesses worldwide are recognising that renewable energy batteries are essential for enhancing resilience, cutting costs, and reducing carbon footprints.

But the question on every CFO’s mind is, "What’s the ROI on investing in renewable energy batteries?" For businesses, understanding the financial returns, payback period, and long-term benefits is crucial in making a well-informed decision.

How Do Renewable Energy Batteries Generate ROI?

The ROI on renewable energy batteries for C&I is driven by several key factors: cost savings, energy independence and sustainability benefits. Let’s take a closer look at each of these components.

1. Significant Cost Savings through Peak Shaving and Demand Management

One of the primary ways energy storage generates savings is through peak shaving, which involves using stored energy to reduce consumption from the grid during high-cost peak hours. This is especially important for businesses with significant electricity usage, as peak demand charges can account for up to 30% of a company's electricity bill. By using renewable energy batteries to supplement power during peak times, businesses can lower their demand charges and save thousands, if not millions, in annual electricity costs.

A recent study by the National Renewable Energy Laboratory (NREL) found that energy storage could reduce electricity costs by up to 15-25% for C&I customers. Additionally, depending on the size of the battery and energy needs, companies can expect a payback period of 3-4 years on their battery investments. Battery investments are 15-20 year assets. 

2. Enhanced Energy Independence and Grid Reliability

Renewable energy batteries also help businesses achieve greater energy independence. Instead of relying solely on the grid, companies can use stored energy generated from renewable sources like solar or wind, which not only reduces costs but also insulates them from grid outages and price volatility. With an increase in extreme weather events causing grid disruptions, having an on-site energy storage system allows businesses to maintain uninterrupted operations and avoid costly downtime.

For instance, recent data from the Energy Information Administration (EIA) shows that weather-related outages have increased by over 60% in the last two decades. In 2023, large C&I facilities with energy storage batteries saw a significant decrease in outage-related productivity losses, reinforcing the value of a reliable, resilient power source.

3. Monetising Batteries with Energy Market Participation

In addition to lowering electricity costs and enhancing reliability, renewable energy storage batteries offer businesses the opportunity to participate in energy markets. By joining demand response programs, businesses can discharge energy back to the grid during peak demand times, earning revenue or credits. This monetisation of energy storage assets is increasingly lucrative as grid operators look for ways to balance demand and reduce reliance on fossil fuels.

For example, VEST Energy recently worked with a large manufacturing company to install a renewable energy battery that participates in over 10 UK market demand response programs, with some revenue fixed for 15 years. Within the first year, the company was able to offset a significant portion of its battery investment costs through demand response payments, further improving the project’s returns. 

Real-World ROI: Renewable Energy Batteries in Action

To illustrate the real-world impact of energy storage on C&I businesses, let’s look at some recent case studies.

Case Study 1: Food Processing Plant Cuts Energy Costs by 20%

A food processing facility in South East England installed a 2 MW renewable energy battery system to complement its existing solar array. By utilizing stored solar power during peak demand times, the plant reduced its reliance on grid energy, cutting energy costs by 20%. With the additional incentive support and participation in a demand response program, the facility achieved a projected ROI within four years.

Case Study 2: Data Centre Gains Resilience and Reduces Downtime

A data centre in Scotland, a high-energy-use sector, invested in renewable energy batteries to mitigate the risk of power outages during grid instability. The company reported a 50% reduction in downtime from grid outages in the first year alone, protecting valuable assets and delivering consistent service. The data centre estimates that the energy storage system will pay for itself in six years through a combination of operational savings and revenue from energy market participation. 

A Strategic Step for CFOs: Weighing the Financial and Environmental ROI

For CFOs and decision-makers, renewable energy batteries represent an opportunity to achieve both financial returns and sustainability goals. Beyond the direct financial benefits, these investments can also support corporate environmental, social, and governance (ESG) targets, contributing to a company’s long-term reputation and appeal to customers, partners, and investors.

Given the increasing investor and regulatory focus on corporate responsibility, energy storage can be a pivotal element of a company’s sustainability strategy.

Final Thoughts: Investing in the Future with VEST Energy

As the demand for reliable, cost-effective, and sustainable energy solutions continues to grow, VEST Energy is here to guide businesses through the complexities of renewable energy storage investments. Our expertise helps businesses evaluate their energy needs, design tailored storage solutions, and maximize ROI through smart energy management strategies and market participation.

Renewable energy storage batteries are not just a trend—they are a proven way for C&I businesses to reduce costs, build resilience, and lead in sustainability. By investing in this technology, businesses can position themselves as leaders in the new energy economy while reaping substantial financial returns. For CFOs looking to make a meaningful impact on their bottom line and the environment, renewable energy storage is a strategic investment worth considering.

Are you ready to start your renewable energy journey? Contact us today to learn more about how renewable energy batteries can work for your business.