Alkaline, lead-acid and lithium-ion batteries are the most commonly used. Single-use batteries such as the alkaline AA or AAA power small electrical devices. Electric cards and grid energy storage, however, use rechargeable batteries such as lead-acid and lithium-ion. Lead-acid batteries are relatively cheap but typically last only a few years and aren’t powerful enough to power a car and they have toxic elements that require special handling after use.

Lithium-ion batteries pack more energy into a given volume, last longer and operate at a wider range of temperatures than other rechargeable batteries.

As a result, they have become the standard batteries for running computers, mobile phones and other consumer electronics. And, most importantly, they also have the energy density and longevity that make them suitable for powering cars and storing and dispatching solar electricity.

It’s no longer a matter of speculation as to whether lithium-ion batteries will be product of choice for storing large amounts of energy for at least the next 10 years.

Battery prices have fallen significantly since hitting the market in the 90s. Five years ago, a lithium-ion battery would fetch over $1,000/kWh in wholesale prices, but now the average price hovers around $400/kWh, with Tesla’s large scale commercial batteries as low as $250/kWh ($500/kWh including the software and system to operate them). By 2020, Tesla expects the total system price to be as low as $300/kWh.

As with all new technologies, there is room for growth and batteries have by no means reached the same plateau in innovation that solar PV has. However, by all accounts, the technology is expected to remain at a similar stage for the next five to ten years. This is exciting news. In conjunction with the market becoming more competitive and prices dropping significantly, now is the time to invest in the technology.

Flow batteries are the only serious contenders to compete with lithium-ion batteries. They store electricity in two tanks of liquid, separated by a membrane. However, they are much bulkier and often contain toxic, non-organic materials such as vanadium, iron, zinc and bromine.

Sources

Tesla’s Powerwall to flow batteries: a guide to the energy storage revolution

The Year Ahead in Energy Storage Policy

Alkaline, lead-acid and lithium-ion batteries are the most commonly used. Single-use batteries such as the alkaline AA or AAA power small electrical devices. Electric cards and grid energy storage, however, use rechargeable batteries such as lead-acid and lithium-ion. Lead-acid batteries are relatively cheap but typically last only a few years and aren’t powerful enough to power a car and they have toxic elements that require special handling after use.

Alkaline, lead-acid and lithium-ion batteries are the most commonly used. Single-use batteries such as the alkaline AA or AAA power small electrical devices. Electric cards and grid energy storage, however, use rechargeable batteries such as lead-acid and lithium-ion. Lead-acid batteries are relatively cheap but typically last only a few years and aren’t powerful enough to power a car and they have toxic elements that require special handling after use.

Alkaline, lead-acid and lithium-ion batteries are the most commonly used. Single-use batteries such as the alkaline AA or AAA power small electrical devices. Electric cards and grid energy storage, however, use rechargeable batteries such as lead-acid and lithium-ion. Lead-acid batteries are relatively cheap but typically last only a few years and aren’t powerful enough to power a car and they have toxic elements that require special handling after use.

Lithium-ion batteries pack more energy into a given volume, last longer and operate at a wider range of temperatures than other rechargeable batteries.

As a result, they have become the standard batteries for running computers, mobile phones and other consumer electronics. And, most importantly, they also have the energy density and longevity that make them suitable for powering cars and storing and dispatching solar electricity.

It’s no longer a matter of speculation as to whether lithium-ion batteries will be product of choice for storing large amounts of energy for at least the next 10 years.

Battery prices have fallen significantly since hitting the market in the 90s. Five years ago, a lithium-ion battery would fetch over $1,000/kWh in wholesale prices, but now the average price hovers around $400/kWh, with Tesla’s large scale commercial batteries as low as $250/kWh ($500/kWh including the software and system to operate them). By 2020, Tesla expects the total system price to be as low as $300/kWh.

Flow batteries are the only serious contenders to compete with lithium-ion batteries. They store electricity in two tanks of liquid, separated by a membrane. However, they are much bulkier and often contain toxic, non-organic materials such as vanadium, iron, zinc and bromine.

Sources

Tesla’s Powerwall to flow batteries: a guide to the energy storage revolution

The Year Ahead in Energy Storage Policy

As with all new technologies, there is room for growth and batteries have by no means reached the same plateau in innovation that solar PV has. However, by all accounts, the technology is expected to remain at a similar stage for the next five to ten years. This is exciting news. In conjunction with the market becoming more competitive and prices dropping significantly, now is the time to invest in the technology.

Alkaline, lead-acid and lithium-ion batteries are the most commonly used. Single-use batteries such as the alkaline AA or AAA power small electrical devices. Electric cards and grid energy storage, however, use rechargeable batteries such as lead-acid and lithium-ion. Lead-acid batteries are relatively cheap but typically last only a few years and aren’t powerful enough to power a car and they have toxic elements that require special handling after use.

Fortunately, many businesses find that taking this route sets them back no more than paying for electricity from the grid, with dramatically reduced exposure to fluctuating energy prices. Your office or government building, commercial site or school may be perfect for a solar energy solution bearing countless benefits.

When the right design decisions are made, offsetting a high proportion of your energy usage is an achievable goal.

With that in mind, here are a few key points to factor in for a cost-effective outcome – you may even end up with a positive cash-flow

By choosing a solar system size that’s appropriate for your building and the nature of your activities, you’ll be set up to meet your energy needs with optimal efficiency.

Small to Medium Size Business Solar Systems: 20 – 50 kW  

These commercial solar systems are larger than residential arrays and are suited to the needs of small/medium businesses such as office buildings, retailers, primary schools, childcare, kindergartens, clubs, hospitality and leisure venues and other establishments with energy demands of 150kWh plus per day. 20kW solar systems generate around 72kWh on average.

Projects may qualify for Small Scale Technology Certificates under the STC Renewable Energy Scheme.

Commercial Grade Solar Systems: 50 – 100 kW

Depending on the size of the building and energy demands, larger multi-storey office buildings, secondary schools and other sites that use 350kWh plus would require commercial solar systems sized between 50-100kW for day to day operations.

Did you know that solar systems under 100kW could qualify for  Small Scale Technology Certificates under the Federal Government STC Renewable Energy Scheme?

Additionally, there are many different funding options available for renewable energy projects including funding over a longer period of time where you pay nothing up front and are cash flow positive from the start with an Environmental Upgrade Agreements (EUA)* or, get a solar system installed with a Power Purchase Agreement (PPA), and only pay a reduced rate on your electricity for an agreed period then own it for $1!

*In New South Wales, Environmental Upgrade Agreements (EUA) are referred to as Building Upgrade Finance (BUF).

Larger Commercial Grade Solar Systems: 100 – 300 kW 

Large commercial solar systems over 100kW may be eligible for Large-Scale Generation Certificates. Commercial solar systems over 100kW can support a vast range of high energy consuming business types typically indicative of the following industries:

Industrial Grade Solar Systems: Over 300 kW

These industrial solar power systems are installed on large roofs of buildings and businesses with very high energy demands. These businesses include sizable factories, super complexes and plants.

Solar systems above 100kW can also be ground mounted and/or constructed as solar farms.

High quality PV panels are worth investing in – they have better longevity, reliability and efficiency than their cheaper counterparts, saving you money in the long term. Cherry Energy Solutions recommends panels from these manufacturers:

Ja Solar

A well-known market leader that you can trust boasting a 10% global market share, JA Solar panels are backed by 25-year linear power output warranty and 12-year product warranty.

Q Cells

Another industry-leading PV manufacturer, Hanwha Q CELLS solar panels are known for their stability, certified quality and high level of performance. Q CELLS products are also backed by an impressive 12-year product warranty and a 25 year performance warranty with 83% original rated power at 25 years.

Sunpower

SunPower solar panels incorporate cutting-edge technology, with cells designed to capture and convert more sunlight than conventional commercial cells. SunPower is a highly reputable brand for commercial applications boasting a market leading 25 year product quality AND performance warranty.

All solar systems will generate varying amounts of power throughout the year – for example, summer may see more power generated due to increased sunlight.

By adding solar storage capabilities, you can store excess power generated by your solar system for use in the evening or early morning, dramatically reducing your reliance on the grid and further slashing your energy bills.

Cherry Energy Solutions is a Certified Installer of the Tesla Powerpack. These fully integrated, AC-connected commercial battery storage systems feature state-of-the-art technology, and can be scaled to your site’s energy needs, whether it be an office block or large-scale regional utility.

Keeping track of energy usage is essential in getting the most from your commercial solar system.

With this in mind, Cherry Energy Solutions has developed Cherry Pulse, an intelligent energy monitoring system that allows you to keep tabs on how your business is consuming electricity in real time.

By enabling you to manage energy usage at a circuit and appliance level, using actual energy tariffs, it gives you the tools to stay in control of your business’ energy spend.

When investing in solar panels for commercial buildings, cost can be a deciding factor in what level of energy offset can be achieved.

Ultimately, the cost will depend on the solar system size and type of panels you choose, together with the inclusion of add-ons such as storage and energy monitoring. The key thing to keep in mind is that these same factors will determine the capacity of your solar system to save you money in the long term.

The longevity, efficiency and overall performance of your solar system will reflect the quality of the installation, so it’s worth getting advice from a solar company experienced in commercial installations.

Look for a company that offers additional products, services and benefits such as a sustainability partner program and post installation packages to compliment your solar installation including performance reviews, monitoring, an emergency response team, longer installation warranties and proactive maintenance.

Cherry Energy Solutions is fully equipped to help transition your business to solar power, as well as advise on the range of financial incentives available from state and federal governments.

Global energy demand continues to rise at an increasing pace. Investments in energy must similarly increase in order to meet the demand. This inevitably creates a plea for new, renewable technologies and solutions – and this is nothing new.

As demand grows, the burden on governments to support and incentivise energy efficient technologies and programs has become immense. Traditional solutions such as increasing taxes or implementing trading schemes serve only to exclude the poor and most vulnerable from the energy efficient space. Successful policies in developed countries must therefore be tailored and adapted to meet the distinct challenges faced by developing nations.

In Australia, we are fortunately positioned to be able to offer flagship examples of how to use energy efficiency most effectively.

Reducing waste and using energy as efficiently as possible facilitates a more effective allocation of resources, with the potential to boost economic output by US$18 trillion by 2035.

Improvements in energy efficiency are the most cost effective way to help increase competitiveness, generate employment, secure energy, reduce poverty and benefit development. By using otherwise wasted, inefficient resources more efficiently, we are able to pay for new developments while remaining cash flow positive.

McKinsey Global Institute ranked energy efficiency as the top priority among measures to mitigate climate change back in 2008, and it has only grown in influence and importance in the last 8 years.

EXAMPLES

• Russia is the 3rd largest energy-consuming country, but is more energy-intensive than any of the top 10 energy-consuming countries. Through energy efficiency, it could eliminate almost 800 million tons of CO2 per annum – equal to the total energy consumption of France.
• China’s efforts to increase energy efficiency between 1980 and 2010 have resulted in a decline in energy intensity by 70%, equivalent to a reduction of 24.4 billion tons of CO2 emissions.

With few negative externalities, generally high profits and cash flow positive solutions, it would seem that achieving energy efficiency would be straight forward. However, market failures and systemic barriers are preventing the realisation of energy efficiency’s potential.

• Poor market incentives and take up from governments to encourage investments in energy efficiency
• Low capacity of governments and agencies to influence changes in policies and deliver effective programs.
• Lack of convincing data and systemic evaluations of programs, costs and impacts.
• Absence of international consensus on the most effective policies and approaches for scaling up energy efficiency, the appropriate role of governments and how to change cultures and behaviours.

1. Local, national and global policies must be accompanied by enforcement and implementation eg. China’s ‘acceptance codes’ at a building’s commissioning phase and clear rules and responsibilities for noncompliance
2. National targets and reporting improve accountability
3. Programs should be designed for implementation at scale
4. More simple programs and business models are needed
5. Incentives must drive markets

Incentive gaps related to energy efficiency are numerous. Victoria and New South Wales are great examples of using national schemes (EUAs, ESC and VEEC) to incentivise all players in the energy efficiency markets.

There needs to be a careful resolution of misaligned incentives. Utility companies fear decreases in sales due to increases in efficiency, landlords own buildings but tenants pay energy bills so neither party has a sufficient incentives to invest in energy efficiency. Australia is leading the way with their Environmental Upgrade Agreement (EUA) financing options in an attempt to incentivise all involved parties.

Markets respond most positively to the alignment of incentives.

The resounding messages from the past two decades are of the importance to deliver energy efficiency initiatives at scale, to engage the private sector as early as possible and then follow with the public sector, and to plan ahead with the support of expansive research and monitoring of receptivity.

At Cherry, we will continue to make our products and services as accessible as possible to all Australians to facilitate our local and national government programs in order educate the local community on the benefits of energy efficiency.