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FREQUENTLY ASKED QUESTIONS

What is a C&I energy storage system?

A C&I (Commercial and Industrial) energy storage system is an energy storage solution designed for commercial and industrial applications, such as farms, factories, office buildings, data centers, schools, retirement villages and shopping centers. These systems help businesses and organisations manage their energy consumption more efficiently, reduce energy costs, provide backup power, and support the integration of renewable energy sources.

How does a C&I energy storage system work?

A C&I (Commercial and Industrial) energy storage system works similarly to a residential energy storage system but on a larger scale to accommodate the higher energy demands of commercial and industrial facilities.
The system can be charged with electricity generated from renewable sources like solar panels or wind turbines or from the grid during off-peak hours, with a battery management system (BMS) or charge controller ensuring the safety and efficiency. The charged batteries store the electrical energy as chemical energy, and then the inverter converts the direct current (DC) electricity stored in the batteries into alternating current (AC) electricity to power the facility's equipment and devices. A C&I energy storage system often includes advanced monitoring and control features that allow facility managers to track energy generation, storage, and consumption, helping optimise energy usage and reduce costs. The facilities with energy storage systems can also interact with the grid, participating in demand response programs, providing grid services, and exporting excess renewable energy back to the grid.
By managing energy consumption, providing backup power, and supporting renewable energy integration, C&I energy storage systems help businesses improve their energy efficiency, reduce costs, and enhance their sustainability efforts.

What are the different types of C&I energy storage systems?

There are several types of energy storage systems suitable for commercial and industrial (C&I) applications. The choice of system depends on factors such as the facility's energy needs, available space, budget, and desired performance. 
Battery-based systems are the most commonly used type of C&I energy storage systems. They store energy using electrochemical batteries such as lithium-ion, lead-acid, or flow batteries. Battery-based systems are popular due to their relatively high energy density, efficiency, and modularity. Lithium-ion Phosphate (LiFePO4) batteries, in particular, are widely used for their high energy density, long cycle life, and safety, and better performance compared to other battery types.

How much does a C&I energy storage system cost?

The cost of a Commercial and Industrial (C&I) energy storage system can vary depending on factors such as the type, capacity, installation costs, and additional equipment or services required. The cost components of the most common C&I energy storage systems are as follows:
Battery: Depend on the type, capacity (measured in kWh), and quality.
Inverter: Depend on the capacity and features, ranging from several thousand dollars to tens of thousands of dollars.
System Components: Include items like charge controllers, battery management systems (BMS), wiring, switches, and other necessary equipment which can add several thousand dollars to the overall cost.
Installation Costs: Depend on the installation complexity, labour rates, local regulations etc., ranging from several thousand dollars to tens of thousands of dollars or more.
Maintenance and Replacement Costs: Depend on the battery type and usage patterns. Batteries may need to be replaced every 5 to 15 years and there may be ongoing costs to maintain the system in good working order. Considering these factors, a C&I battery-based energy storage system can cost anywhere from tens of thousands to hundreds of thousands of dollars or more, including installation. The best choice will depend on the specific energy requirements, as well as the affordable budget and return on investment expectations.

Why is energy storage system useful on a grid scale?

Energy storage is important on an industrial or grid scale for three main reasons. The first is to "balance load" — to shift energy consumption into the future, often by several hours, so that more existing generating capacity can be used efficiently. The second reason is to "bridge" power — in other words, to ensure uninterrupted service during the seconds-to-minutes required to switch between different power generation sources. Finally, power quality management — the control of voltage and frequency to avoid damaging sensitive equipment — is an increasing concern that storage can alleviate whenever needed, for a few seconds or less, multiple times throughout day.

Why invest in battery storage?

Battery storage enables greater self-consumption of renewable energy from variable sources like solar power. Businesses that face difficulties in the reliability or capacity of their electricity supply can reap benefits from battery storage. Battery storage can also save on power costs by reducing the need to purchase electricity during expensive periods.

Can battery storage help keep the power on during blackouts?

Yes, storage can contribute to local energy security and energy resilience, especially when the batteries are paired with local power source on a community microgrid. A microgrid is a small network of customers with a local source of electricity that can be disconnected from the grid and operated independently.

During and after natural disasters and extreme weather events, all of which are becoming more frequent due to climate change, battery storage can help keep essential services running and protect the most vulnerable populations as part of a community-driven climate resilience plan. When thinking about community resilience, it can be advantageous for critical infrastructure — such as police and fire stations, hospitals, cooling centers, and emergency shelters — to have rooftop solar panels and battery storage systems on site to keep the power on during an emergency.
 

Why do we use Lithium-ion Phosphate battery only?

BESSNZ only uses Lithium Iron Phosphate (LFP) cells, which are safer than the lithium batteries used in cars. The chemical composition of LFP cells virtually eliminates the risk of overheating and thermal runaway, making them safe and non-flammable even in extreme conditions. LFP cells also have a long lifespan. Although they are slightly heavier and less compact, this is usually not an issue. An additional advantage is that the LFP cells do not contain any cobalt.

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