With energy costs and policy charges continuing to rise, many large energy users are looking at on-site (or behind-the-meter) solar generation and battery storage to take control of their costs, improve resilience, and support sustainability goals.
Here’s 10 reasons you should consider behind-the-meter generation
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1. Significant Cost Savings on Energy Imports
On-site – or behind-the-meter – solar generation allows businesses to reduce reliance on grid imports. For, behind-the-meter solar generation, most value comes from avoiding import costs at the site.
2. Peak-Time Cost Reduction with Battery Storage
Battery energy storage systems enable businesses to import power when wholesale costs are low and then store that power to use during periods when those costs are higher, reducing imports during the higher price periods.
3. Lower Network and Policy Charges
Battery energy storage systems can also reduce exposure to time-sensitive network charges, capacity market levies, and some supplier charges, using stored power when the charges are higher.
4. Improved Energy Security and Resilience
Storing energy on-site increases reliability during outages or peak demand periods.
5. Revenue Streams from Excess Generation
Depending on commercial arrangements, surplus solar or battery power can be exported to the grid, generating revenue during high-price periods.
However, because wholesale costs only account for around 40-50% of the total import costs, using the behind-the-meter solar generation to reduce imports is more valuable than exporting it.
6. Flexibility Through Innovative Commercial Models
Businesses can choose the traditional route of accessing behind-the-meter assets, which is purchase/hire-purchase, however, while this will deliver savings, it can be capital-intensive. Instead, a business could review the benefits of more innovative business models. These include options such as the corporate receiving a fixed and discounted cost for their electricity supply in return for a partner getting control of the asset(s) to optimise and dispatch and retain the revenues from.
7. Contribution to ESG and Sustainability Goals
On-site solar can directly reduce a business’s carbon footprint, supporting sustainability targets – something many boards love to hear.
8. Predictable Energy Budgeting
Behind-the-meter arrangements can stabilise energy costs, protecting against future spikes in price. Using scenario analysis of projected energy costs allows boards to see the long-term budgetary impact.
9. Enhanced Negotiating Power with Suppliers
By demonstrating the avoided costs from behind-the-meter generation, businesses can negotiate better terms with energy suppliers.
10. Future-Proofing Against Rising Non-Commodity Charges
Non-commodity costs- including network tariffs, carbon levies, and policy costs - are projected to rise significantly. Using our forecasts, you can present a data-backed argument for behind-the-meter solutions as a hedge against escalating charges.
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So, you know the benefits – but how do you convince the board?
Overall, businesses can access potentially significant cost savings from the installation of behind-the-meter generation and storage assets. However, the magnitude of these savings is bespoke and dependent on a range of business- and site-specific factors, with boards looking for assurances that investments are financially sound, you will need the figures to back up your case.
So, let our data and insights do the talking: we offer detailed modelling of current energy use, import costs, and forecast charges allowing a quantified assessment of the potential savings, risk mitigation, and revenue generation for your business.
This, supported by our market expertise and analysis, can ensure your decisions are evidence-based.
To find out how we can help you on your journey to cheaper energy, you can reach out to David Ellis at d.ellis@cornwall-insight.com or find out more information and book a demo below:
