A growing number of large energy consumers are assessing the viability of energy storage systems (ESS). The benefits of storage systems are both plentiful and undeniable. They maximise investments in renewable generation, provide flexibility in electricity supply and can result in significant costs savings by switching to stored electricity at peak-tariff periods. Energy storage systems also double up as a comprehensive UPS solution, eliminating the risk of interruptions in power.
Despite the many benefits that storage systems offer, there remains a significant barrier to entry – capital expenditure. Grid scale storage is still in its infancy and while battery prices are falling by the day, the reality is the ESS requires significant capital investment. While the mid and long-term returns can be significant, the capital outlay can make ESS a difficult pill for stakeholders to swallow.
The times, they are a-changin’
Powerstar, one of the leading ESS providers in the UK and a key Powersun partner, has introduced a range of financing initiatives, which aim to remove the burden of capital expenditure from the equation.
Powerstar has essentially taken a leaf out of the cloud provider handbook by switching to a subscription model for ESS. Aptly named, ‘Storage as a Service’ (SaaS), Powerstar’s new finance model allows large energy consumers to buy the system on finance, making it an operating expense, rather than a capital one.
For organisations that struggle with cash flow, this could be a game changer. Performance is fully underwritten by the manufacturer, meaning no hidden maintenance expenses. With an estimated net cash flow of up to £40k per year on a 1MW system, businesses can now realise all of the benefits that energy security has to offer.
Alongside the SaaS, Powerstar has introduced an ESCO (Energy Savings Company) funding model, again, allowing organisations to realise all of the benefits of energy storage without any capital outlay. Through the ESCO model, all CapEx investment for the project is provided through Powerstar and the investment is recouped through the savings generated.
The funding model removes the most significant barrier to entry for most would-be energy storage customers, providing total grid security and UPS capabilities with zero risk.
The ESCO funding model for Powerstar’s VIRTUE storage systems has 5 simple stages:
Stage 1 – Analysis:
Analysis of the current business operations, energy usage and examination of site and facility.
Stage 2 – Viability:
Feasibility calculations are carried out on the project including costs, savings and payback periods.
Stage 3 – Finance Package:
A clear and concise finance package is created with all details agreed upon.
Stage 4 – Implementation:
The project is undertaken on the agreed terms, at no initial cost to the client.
Stage 5 – Verification:
An ongoing savings verification reporting service is provided to monitor performance
Breaking down barriers
These really are exciting times. ESS has the potential to redefine the energy market, giving consumers the ability to capitalise on renewables, while at the same time, drastically reducing costs.
Powerstar’s new financing models are breaking down the most significant barrier standing between large energy consumers and enduring energy security.
For more information on energy storage systems or Powerstar’s finance packages, contact us today.