How Microgrids Mitigate Grid Pains and Enhance Resiliency
Microgrids: Performance-enhancing DERs
The transition towards distributed energy is gaining momentum, fueled by distributed energy resources like solar and storage. However, another technology playing an important role in this transition are microgrids.
These decentralized energy networks are proving to be major assets in achieving sustainable energy goals, at the same time providing immediate solutions to customer pains traditionally associated with utility reliance. From capacity restrictions, to interconnection delays, to rate increases drawing electricity from utility supply can be challenging and expensive.
Luckily, the shift to distributed energy resources and renewable energy is being supported by significant legislative support, namely the Inflation Reduction Act (IRA), which offers considerable financial incentives for the adoption of renewable energy technologies.
A micro-what?
A microgrid is a single, local network of distributed energy resources that operates both independently and in connection with the larger grid. A microgrid’s ability to operate independently ensures reliability, enhances security, and contributes to the environmental sustainability of a region’s energy systems. Microgrids can incorporate a variety of energy sources, including solar panels, battery storage, and combined heat and power (CHP) systems, making them a versatile solution for energy challenges.
How microgrids benefit customers
Microgrids offer several immediate benefits for customers looking to mitigate the challenges posed by conventional energy systems:
Avoiding capacity restrictions and interconnection delays
Microgrids can be developed and scaled to meet the specific energy needs of a region without the extensive wait times and bureaucratic hurdles often associated with limited utility capacity and interconnection.
Protection against rate increases
By generating power locally off-grid, microgrids can significantly reduce dependence on utility-supplied electricity, shielding customers from the rate hikes and general volatility of today’s energy market.
Enhanced energy reliability
Microgrids provide a resilient energy supply that can help supplement power during outages or grid failures, supporting continuous operation for critical services and businesses.
How the IRA makes microgrids make sense
The Inflation Reduction Act (IRA) has introduced a slew of tax incentives that make the development of renewable energy projects, including solar, storage, and CHP more financially viable than ever. Its signature Investment Tax Credit (ITC) can cover up to 50% of a project's cost if certain criteria are met.
This substantial financial incentive underscores the urgency for businesses and communities to act swiftly to capitalize on these benefits. By beginning construction or incurring a minimum percentage of project costs before the specified deadline, projects can "safe harbor" their eligibility for these incentives, maximizing savings and accelerating the return on investment.
Moving forward towards distributed energy
Microgrids represent a major advancement in distributed energy, providing a resilient, efficient, and sustainable alternative to traditional utility reliance. Supported by significant legislative incentives, and fast-improving renewable energy technologies, the adoption of microgrids offers a practical solution to immediate energy challenges - meaning now is the time to work towards a more decentralized and environmentally friendly energy future.
Our Integrated Approach
At Promise Energy, we understand that every facility has unique needs, especially when it comes to solar, storage, and CHP. Promise’s integrated approach to energy is what differentiates us from the crowd, and you can count on our energy experts to custom-design a system to meet the unique energy needs for your business.
Contact Promise Energy at info@promiseenergy.com for a complimentary energy evaluation of your facility.
At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.