Helping businesses adopt battery energy storage with a flexible, financial option
As I talk to businesses across the UK, I am seeing a growing interest in battery energy storage as companies begin to realise the benefits that it can bring to their operations. From maximising electricity generated by renewables on site through to managing peak load spikes or adding additional capacity for energy-intensive equipment, whatever the motivations of the individual business, battery energy storage is becoming a key part of a building’s energy mix.
However, we know that investing in new technology requires careful thought and capital. That’s why Connected Energy has recently developed a new Battery Storage as a Service model, working with Capitas Finance. The new financial package will help more organisations embrace this new technology, taking away the need for large, upfront capital outlay and helping them to see the benefits for themselves.
Here I discuss the top benefits of the new financial model:
1. Realise the benefits with no upfront costs
With growing energy costs and electricity contracts reaching a record high, battery energy storage can bring about many opportunities to reduce costs – we explore some of the ways businesses can make savings in one of our previous blogs.
Understandably, however, both COVID and Brexit have made companies more risk-adverse to large capital expenditure when the returns are spread over a longer period of time. Battery Storage as a Service takes the capital risk away.
Working with Capitas Finance, we have created a dynamic, funding solution that is tailored to our customer’s needs, provides solid guarantees and helps them make the best return on their investment.
Our financial model allows businesses to invest in battery storage technology over a longer-term payment structure - which is between seven to ten years. You have no upfront payments and instead pay a monthly service charge. This allows you to create clear forecasts for your investment, for cost savings and for the revenue that can be made.
2. All costs are covered
Working with Connected Energy, you’ll be benefiting from our state-of-the-art E-STOR unit, fully installed and backed with our Connected back-office and online portal. The portal allows you to manage and gain reports on the performance of the system all as part of the monthly charge.
Once the equipment is installed, you’ll also benefit from our warranty, management, and maintenance so there’s no need to worry about any additional fees. It even covers spares. All this lasts for the term of the contract.
3. A full range of guarantees
The model also comes with a full range of guarantees which will give peace of mind to any business wanting to trial this technology. We constantly monitor the battery health of the system through our back-office and physically check-in with our customers every six months to make sure that the system is performing as you need it to.
As part of the agreement, we also guarantee a 96% uptime. This is something that is monitored by our finance partners. If we don’t meet our promises, we’ll be penalised, and you will be compensated as a result.
Not only that but if you decide to choose a term of ten years, this also includes a battery test and refresh – ensuring your equipment is as good as new.
4. Any revenues generated go directly to you
Many of our customers use their battery energy storage systems to generate revenue by helping the grid operator to balance the grid at peak times. This is something that National Grid pay you for. It’s known as frequency response services and allows businesses to store energy when there’s a surplus and use it when demand is high. As part of our feasibility study, we can show potential revenue as part of a business case which will help you decide whether this could help cover some of your monthly service charges.
And the best thing is that any revenue you make is completely independent of your finance agreement - so it is paid directly to you.
5. Flex your monthly payment to pay more upfront
Choose the option and contracts that work best for your business. With Capitas Finance, you could choose to front-load your service charges in the first few years – think of it a bit like a mortgage over-payment. This also links to the point above as it could be particularly advantageous if you decide to go down the route of frequency response. Over the next couple of years, as we are seeing energy prices rising, the frequency response returns are anticipated to be high. This means you’ll benefit from a higher return which could help you pay off more in the early years.
6. It helps businesses to trial the technology for future sites
Finally, this model provides a test-bed for how battery energy storage works in practice. Many companies that I talk to have multiple sites and are considering battery energy storage across multiple sites but want to prove the technology first. This model allows businesses to future-proof, safe in the knowledge that they have worked out their returns and benefits using your own real-site data.
Using this model will allow you to monitor, learn and model how the future could look for battery storage as part of a larger roll-out programme.
Want to find out more?
Read more about our Battery Storage as a Service financial model and how it could help your business
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