To make this measure more effective and tailored to the specific context of your company, we recommend that you first perform an overall analysis of your energy situation.
As part of the decarbonisation process, electricity is playing an increasingly central role in businesses, gradually replacing other energy sources such as fossil fuels. It is therefore becoming increasingly more important for companies not only to control their electricity costs but also to optimise consumption and self-generation in order to maximise their energy potential – for example through the use of a photovoltaic system, and in some cases, in combination with a battery storage system.
Commercial and industrial battery storage systems, with capacities ranging from 30 kWh to several MWh, enable companies to increase the self-consumption of on-site renewable electricity generation and thus reduce energy costs. By reducing power peaks, they allow for improved peak load management and thereby significantly reduce a company’s electricity bill. To fully leverage your battery’s capacity and increase your profits it is equally essential to install an energy management system (EMS).
The following measure outlines in which scenario the installation of a battery storage system is recommended and beneficial – and how its implementation can be planned.
A commercial or industrial battery storage system – especially when combined with a photovoltaic installation – can provide various operational advantages. Key application areas include:
Furthermore, there are additional potential monetisation mechanisms that can generate additional revenue and increase return on investment – for example, through “arbitrage on the imbalance market” or so-called “ancillary services”. However, these opportunities are currently not available in Luxembourg, as they depend on the further development of the market and the regulatory framework, which is still being established.
EMS (Energy Management System): To activate and optimise certain applications, battery storage systems must be equipped with a compatible energy management system (EMS). This device monitors, controls, and optimises the energy flow within a circuit located behind the grid connection point. This circuit includes the battery, the inverter and its photovoltaic system, charging stations for electric vehicles, and possibly a heat pump. All of these energy devices must be capable of communicating data and receiving commands, which makes it essential to ensure their compatibility.
Before investing in a battery storage system, it is important to understand the 15-minute consumption and production profiles in order to identify potential energy optimisation opportunities.
Profile A: A company with solar production below its consumption
All produced energy is self-consumed, e.g., a government office or a store with limited roof space. ➡️ Conclusion: This profile is not suitable for the installation of a battery storage system.
Profile B: A company that produces more during the day than it consumes
Opportunity to store excess production and release it in the evening or at night when consumption rises again, e.g., a cafeteria ➡️ Conclusion: This profile could, under certain conditions—including a profitability calculation—consider using a battery storage system to cover the energy consumed in the morning.
Profile C: A company that produces more energy during the day than it consumes, with a fleet of electric vehicles that are in use during the day and need to be charged at night
For example, a transport company or a postal service provider. ➡️Conclusion: This profile could, under certain conditions—including a profitability calculation—consider the use of a battery storage system to cover energy consumption during the night.
A battery is resource-intensive and remains a considerable investment, even with available subsidies. It is therefore important to consider various parameters to determine when such an installation is economically viable. Profitability increases if the following parameters are met:
Battery sizing is a critical factor in profitability calculations. Consult a qualified electrician or an engineering firm to professionally determine the battery size suitable for your current and future energy profile.
A precise understanding of the consumption and production profile is crucial to correctly size the battery and, above all, to assess whether the investment is economically viable. Conscious and sensible energy consumption also enables savings through feeding excess energy back into the grid and through energy-saving behaviours. Depending on your energy profile, investing in a battery storage system is not necessarily the best solution. Discover the measure on electricity sharing.
Calculation of investment profitability
When calculating profitability, it is important to consider not only the technical feasibility of the project but also the economic feasibility, taking into account the following parameters:
Generally, for industrial-scale battery storage, local usage alone, i.e., self-consumption and peak load shaving, yields a return on investment in the yield of about 8 to 12 years.
Identify electricity storage applications relevant to your company’s situation
A combination of different applications can significantly increase the profitability for the company. For example, by using the battery storage which is helping to increase self-consumption of solar energy in summer to engage in energy arbitrage in winter. We strongly recommend hiring an engineering firm to identify possible applications specific to your case and to assess the feasibility and profitability of the project.
Please note: any application for government or non-government subsidies must comply with the “incentive effect”, subject to compliance with the subsidy conditions.
In order to respect the “incentive effect”, no binding commitment (signing a quotation; paying a deposit) may be made BEFORE having received the agreement in principle from the State or the electricity and natural gas supplier following an application for subsidy.
In the absence of a dedicated state subsidy for the installation of a storage battery, there are two types of subsidies available for storage batteries: those in combination with the installation of a photovoltaic system, and tax incentives.
N.B. Les aides étatiques ne sont pas cumulables entre elles pour un même projet.
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