The analysis combined recent utility rate structures with historic data on solar photovoltaic power generation and commercial facility loads to evaluate 6,860 cases.
The results of the analysis showed that in the absence of incentives, small battery systems reduce peak demand by 2.5%, offering an attractive return on investment.
By using Behind-the-Meter (BTM-Lite) version of BLAST, the analysis calculated peak load reduction and electricity cost savings while also identifying energy storage system configurations that deliver the most favorable return on investment in the shortest time possible.
NREL Energy Storage Task Leader Jeremy Neubauer said: "Batteries for demand-charge reduction are most cost effective under today’s rate structures when configured for higher power-to-energy ratios, targeting discharge durations from 30 minutes to one hour.
"State or utility incentives are often necessary to make longer duration, lower power-to-energy ratio systems more attractive."
Developed by NREL and funded by the DOE’s Office of Energy Efficiency and Renewable Energy, the full suite of BLAST tools enables prediction of long-term performance of batteries and identification of possible improvements in a wide range of applications, including in electric vehicles (BLAST-V) and stationary energy storage (BLAST-S).
BLAST BTM-Lite can also be paired with NREL’s Battery Ownership Model to evaluate lifetime battery costs in conjunction with performance, longevity, and new value propositions.
