Capital Programs

Renewable energy projects can be capital intensive, but several opportunities help with the up-front cost. The Federal Investment Tax Credit (ITC) provides a tax credit for applicable renewable-energy capital costs. The current tax code allows for first-year depreciation of this type of facility. California’s Self-Generation Incentive Program (SGIP) pays based on the size of the energy storage system installed. The Department of Agriculture (USDA) offers renewable-energy loans and grant programs that may be available for agriculture customers.

Utility Electricity Rates

Somehow, these keep rising! Thankfully, the energy economy realizes the benefits energy storage systems offer, and a new electricity tariff has come out for customers with energy storage systems. This new Option S rate provides significant savings, even over solar’s Option R.  Many businesses in across the Western U.S. pay for electricity on a Time-of-Use (TOU) basis, which is meant to represent the utility’s costs for providing energy and availability at each hour of the day. Due to the significant amount of solar installed in the state, daytime electricity is cheap. The highest costs are now in the afternoon and evening as the sun goes down. Solar only can’t serve the most expensive parts of the day.

Revenue Streams

While specific incentives exist for renewable energy (ITC, SGIP), the rest of the electricity grid relies on markets and programs to operate effectively. Foundation’s DirectCore brings these markets to commercial and industrial customers in ways the renewable industry has yet to do previously. As an example, the organization responsible for balancing the grid in California, the CAISO, runs day-ahead and real-time markets for energy and energy services. The energy produced by your system will mostly go directly to feed your equipment. Still, there are ways of controlling that energy so that it provides services to the grid while delivering electricity to you. These are called Ancillary Services and are a vital part of balancing the grid. Likewise, electric utilities (PG&E, SCE, SMUD, SDG&E, etc.) are required to procure services like Resource Adequacy (ensuring sufficient reserves to keep the grid on), and Foundation’s energy systems can provide this service. There are other programs as well, and the energy economy creates new programs as they are needed to continue the operation of the grid.

DirectCore™ EMS – The Orchestra Conductor

The incentives, rates, and programs above have unique requirements, limits, and value propositions. Foundation’s Direct Core™ EMS was designed with this problem in mind. DirectCore uses real-time optimization, considering this complex matrix of parameters and opportunities and dispatching each piece of the energy system in real-time to achieve the best outcome for the customer. DirectCore™ can take advantage of late-breaking market changes and consistently delivers its highest and best use. Meanwhile, Foundation’s administration backend compiles the required compliance, settlement, and billing data to ensure revenue is correctly realized and the system stays within required operating limits.