Electricity powers nearly everything we do, but the way we use it isn’t always efficient. In fact, the power grid (or distribution system) is designed to handle events that occur ~2% of the time – something we call ‘peak demand’. This is when all of the air conditioning, all of the heating, or other loads like EV charging are all on at once.
The power grid struggles when demand peaks all at once. These peak periods put extra stress on the system and may require upgrades to infrastructure, thereby driving up costs for all ratepayers, especially large buildings with high energy needs. Fortunately, there’s a smarter way to manage the demand.
With the help of batteries, buildings can smooth out those spikes in demand. When most people think about batteries, they picture powering phones, cars, or maybe even a home during a blackout. In an industrial building, we can use sea-can sized batteries to perform something called peak shaving.
Understanding Peak Shaving
“Peak shaving” might sound a little technical, but it’s really just about smoothing out the busiest times for electricity use. It’s about taking those ‘spikes’ in demand and smoothing them out.
Think of electricity usage like rush hour traffic. In the morning, everyone heads to work at the same time, and the roads get congested. In the evening, it’s the same story when everyone heads home at once. In the world of energy, something similar happens.
When an office building fills up with people in the morning, the lights flip on, heating or cooling kicks in, computers fire up, and demand on the grid spikes. Later in the day, millions of households do the same thing at home: turning on ovens, stoves, lights, and furnaces all at once. These hours of high demand can put serious strain on the system.
Peak shaving is similar to easing traffic congestion. This process ‘shaves’ off the top of the power demand curve. In other words, instead of letting electricity spike sharply during busy periods, peak shaving helps to flatten those spikes. The result? A steady, more optimized flow of power that makes the overall system easier to manage.
That’s where batteries come in.
How Battery Storage Helps
Battery storage makes it possible to capture power from any electrical source, be it the grid, or your rooftop solar array, and store it until it’s needed. During periods of high demand, these stored reserves can be released to ensure the electricity supply is optimized. What makes battery storage so important is its flexibility. It can respond almost instantly, scaling up or down to support the grid or to reduce demand on your facility.
By charging when demand is low (and electricity is more affordable) and discharging during the busiest times, batteries help flatten out spikes in consumption. In fact, it’s similar to encouraging drivers to spread their travel throughout the day rather than all hitting the road at rush hour. Once the flow evens out, everything runs more smoothly and we don’t need to embark on expensive infrastructure upgrades.
Cost-Saving
For building owners, peak shaving goes beyond supporting the grid; it’s a smart financial strategy.
Utility companies often charge higher rates during peak demand, which means those spikes in energy can quickly drive up costs. By using battery storage to cover that demand instead of pulling electricity from the grid, businesses can significantly cut their bills. In many cases, savings from reduced demand charges can turn battery storage into an incredibly valuable investment. When done right, battery storage is good for the bottom line and for the energy system.
The Bottom Line
Peak shaving and battery storage may sound very technical, but ultimately, these strategies are about making energy use smarter, more optimized, and more cost-effective. Managing your power properly ensures you’ll see meaningful savings and a stronger return on investment. For the energy system, it means greater reliability and the ability to incorporate more renewable energy. Batteries don’t just keep the lights on; they keep the whole system running at its best.
It’s time for your business to take a step toward energy independence. Call Inferno Solar today at 587-774-7275.
