What should you know if you are planning to buy a Battery Energy Storage System?
What is a Battery Energy Storage System (BESS)?
A Battery Energy Storage System (BESS) is an electrical energy storage solution that enables energy storing when electricity is cheap and use thereof when it is most needed. The BESSs have become more common, especially in connection with solar panel systems, but they can also be useful for households looking to reduce their dependence on the electricity distribution network and optimize their energy consumption.
How much does a home BESS cost, how much do you need to invest in a home BESS?
The price varies depending on the size of the home BESS, and the range is between 5,000 and 15,000 euros. The systems store roughly 5 kWh to 20 kWh. The prices vary from 500 to 1,000 euros per kWh depending on the capacity of the home BESS, but the larger the system, the cheaper the charging capacity usually becomes. This is because the electronics used in the BESS battery pack are expensive, but the amount of electronics does not increase significantly as the pack’s capacity increases.
What kind of household is a home BESS suitable for?
A home BESS can be used both with and without micro production equipment like solar panels. In other words, a home BESS is suitable for a household that has a production unit, such as a solar power plant, or that has a home automation system in their property. A SPOT-priced contract makes it possible to buy and store energy when it is cheap.
If you are considering buying a home BESS, you must have both expertise in and an understanding of electrical engineering. You should not believe the words of every battery seller. Talking to an energy advisor in advance is worthwhile!
Do I buy my own home BESS, or do I buy it as a service?
You can get a home BESS by buying the system for yourself or renting it from a service provider. If you own the home BESS, you can use the electricity stored in it according to your own needs. When buying a system as a service, it is good to check how much of the stored energy goes to the reserve market. In other words, you must understand how much of the stored energy you yourself can use.
What does the reserve market mean?
The BESS sellers connect the BESSs to the so-called reserve market of the electricity system, which balances electricity consumption and production throughout the day. In the electricity reserve market, prices depend on supply and demand, as in any other market. As the number of BESSs offering flexibility increases, the returns correspondingly decrease. Only electricity market participants approved by the distribution system operator Fingrid can participate in the reserve market. Individual consumers cannot participate in the reserve market.