Energy Storage - Value of Backup Energy
Customers value energy storage for its ability to provide them with electricity if the grid goes down. This value can be quantified in dollars on an annual basis. Before proposing Energy Storage to your customer, SolarNexus recommends determining the customer’s perceived value of backup - as each customer's perceived value can vary significantly, and this value be the determining factor for whether its even worthwhile proposing.
See Solution Services: Energy Storage Systems for more about how to create and configure an Energy Storage system. For backup, use can use the "Backup Only" Charge/Discharge Strategy or one of the "Load Shifting" strategies in combination with an appropriate Minimum Charge settings to allot some percentage of the battery for backup.
Incentive Type: "Annual Backup Energy Value"
SolarNexus has already populated a generic "Annual Value of Backup Energy" incentive into the system that you can use. The default amount is empty so that you can input any amount. This amount is customer's perceived dollar value per year for the backup energy storage system you have defined in their solution.
You may also create your own "Annual Backup Energy Value" incentive definition for use by your company (Administration > Incentives). For example, if you want to pre-populate some default amount, or rename the incentive, or provide additional user help instructions.
How to Determine an Annual Value of Backup Energy
Below, we have provided an example value of backup power calculation that you can use, or you can come up with your own. Either way, SolarNexus strongly suggests that your calculation methodology:
- Use a formula that accounts for the costs of the system
- Is simple enough for customer to understand
- Is used consistently by you / your team
You can pre-create a single page worksheet that you can work thru with your customer. Here is an example calculation methodology you may use:
Annual value = ($ / outage) * (autonomy multiplier) * (outages multiplier)
Example:
Where |
How |
Example |
$/outage = summed value of each backed up circuit. |
Pre-make list of circuits, include suggested value ranges |
•refrigerated goods ($125) •value of phone/computer charging ($50) •value of lighting ($25) Total = $200 |
Autonomy multiplier – A means to account for larger energy capacity to handle periods where solar recharging is diminished by clouds/smoke. |
Suggest: 1 (for 1 day) 1.5 (for 2-3 days) 2 (for 4+ days) |
Plan for 2-3 days autonomy, So multiply by 1.5. |
Outage multiplier = expected number of outages times probability. |
Consider history: “for sure, at least twice” = 1.00 x 2 “50% chance of 3 outages” = 0.5 x 3 |
Plan for 50% chance of 3 outages (3 x 0.5), So multiply by 1.5. |
Total |
$200 * 1.5 * 1.5 = $450 / yr |