Industrial and Commercial solar battery energy storage system

As manufacturers and solution providers of solar energy storage systems for commercial and industrial use, we are committed to providing efficient and reliable energy solutions to clients worldwide. This guide aims to assist our overseas agents and end customers in better understanding and utilizing solar energy storage systems, ensuring successful project implementation and long-term stable operation.

Solar battery energy storage Core Components

Inverters: Convert the direct current stored in lithium batteries into alternating current for use by commercial and industrial equipment. Types of inverters include string inverters, centralized inverters, and microinverters.

Lithium Batteries: Store the electricity generated by solar panels; common types include lithium iron phosphate (LFP) batteries and ternary lithium (NMC) batteries.

Solar Panels: Convert sunlight into electricity; selecting high-efficiency and durable solar panels is vital for system performance.

Industrial battery energy storage Operating Modes

On-grid microgrid energy storage solution

Details: The system connects to the grid, prioritizing electricity generated by solar panels for user usage, with excess energy fed back to the grid; it draws energy from the grid when insufficient electricity is available.
Advantages: Enhances system reliability and economy, allowing users to earn additional income through grid electricity price subsidies.
Applications: Urban areas, industrial parks, commercial centers, etc., where the grid is stable.

Off-grid microgrid energy storage solution

Details: The system operates completely independently of the grid, with electricity generated by solar panels directly stored in lithium batteries and supplied to users through inverters.
Advantages: Not constrained by grid limitations, suitable for remote areas or places with unstable grids, improving energy self-sufficiency.
Applications: Remote areas, islands, rural areas, industrial zones with unstable grids, etc.

Hybrid solar system + battery energy storage system

Details: The system can automatically switch between grid-tied and off-grid modes. It operates in grid-tied mode under normal conditions and switches to off-grid mode when a grid failure occurs, ensuring continuous power supply.
Advantages: Combines the benefits of both off-grid and grid-tied modes, improving system reliability and flexibility.
Applications: Users that have access to the grid but wish to increase energy self-sufficiency, such as hospitals, data centers, and critical industrial facilities.

LUXMAN - Hybrid home solar system battery energy storage system

Solar PV-Diesel energy storage integrated system

Commercial battery energy storage Economic Analysis

Equipment Costs

Photovoltaic Equipment: The total cost for 1MW photovoltaic equipment is approximately 120,000 RMB, equivalent to about $17,500.
Energy Storage Equipment: The total cost for a 1MW/1MWh storage system is approximately 1,960,000 RMB, equivalent to about $285,700.
EPC Total Price: Considering costs for equipment, installation, commissioning, etc., the EPC total price for a 1MW/1MWh energy storage system is approximately 2,080,000 RMB, equivalent to about $303,200.

Power Generation and Cost per KWh

Average Effective Work Hours per Year: Assuming an average effective operational duration of 1,400 hours for photovoltaic installations, the total power generation over ten years would be 56,000 kWh.
Cost per KWh for Energy Storage: $0.079/kWh.
Cost per KWh for Photovoltaic: $0.069/kWh.
Total Cost per KWh: $0.15/kWh, which is lower than grid electricity prices.

Economic Benefits

Self-Consumption: The peak periods of photovoltaic generation typically coincide with industrial production peak periods, saving around 10,700 RMB (approximately $1,540) annually through self-consumption.
Capacity Charge Reduction: After installing energy storage equipment, annual savings on basic electricity prices can reach 576,000 RMB (approximately $83,200), with a payback period of about 3.7 years.
Overall Economy: Under the current costs of energy storage equipment, an investment in 1MWh of storage can recover its costs in about four years. Capacity prices in different regions will affect this payback period; for instance, in regions like Heilongjiang, Jilin, and Liaoning, with lower capacity prices, the payback period may extend to around 5.5 years.

Return on Investment Calculation Formula

Return on Investment (ROI): Measures the economic benefits of an investment. The calculation formula is as follows:
ROI = (Net Profit / Total Investment) × 100%
Net Profit: Total revenue during the project’s operational period minus total expenses.
Total Revenue: Includes savings from self-consumption and grid electricity price subsidies.
Total Expenses: Includes equipment purchase costs, installation and commissioning costs, and maintenance costs.
Example: Assuming total investment is $303,200, and annual savings on electricity is $83,200, with a payback period of 3.7 years.
Net Profit = $83,200 × 3.7 years = $307,840
ROI = ($307,840 / $303,200) × 100% ≈ 101.53%

Solar battery energy storage system Application

Industrial battery energy storage system

Application Scenarios: Primarily used in factories, industrial parks, and other industrial fields to meet large-scale energy demands.

Commercial battery energy storage system

Application Scenarios: Mainly used in commercial buildings such as offices and shopping malls to reduce energy costs and improve the stability of energy supply.

Solar Home battery energy storage system

Application Scenarios: Mainly used in residential buildings to achieve energy self-sufficiency and reduce energy costs.

Project Implementation Recommendations

Standardized Design

- Modular Components: Employ modular design for easy installation and maintenance of the system.
- Pre-Configured Solutions: Provide pre-configured storage system solutions to reduce complexity and time costs during on-site installations.

Safety Requirements

- Fire Prevention Measures: Implement monitoring, fire protection, and firefighting measures collaboratively to ensure storage safety.
- Independent Settings: Battery storage rooms and electrical control rooms in the building should be independently set; if not possible, materials with a fire resistance rating of less than two hours should be used for separation.
- Explosion-Proof Ventilation: The battery storage area in the building should have explosion-proof natural ventilation systems, ensuring the ventilation area is no less than the building area.
- Fire Extinguisher Configuration: Fire extinguishers should be configured according to the GB 50140 “Design Specification for Configuration of Fire Extinguishers in Buildings,” suitable for the severity rating of the danger, preferably using clean agent fire extinguishers with an independent fire protection power supply.

Load Requirements

- Load-Bearing Design: Sites where energy storage batteries will be installed should be designed for battery load, considering future expansion.
- Roof Storage: If using prefabricated cabins, structural reinforcements are needed. It is recommended that rooftop storage capacity does not exceed 8 kW·h/m², with other areas not exceeding 16 kW·h/m².

Site Selection Requirements

- Distance: Distributed storage should maintain a certain distance from surrounding buildings to avoid safety hazards.
- Environment: Choose areas with abundant sunlight and no obstructions to ensure optimal power generation efficiency of solar panels.
- Regulations: Comply with local laws and regulations to ensure the legality and compliance of the project.