Throughout the year, there are critical components to running a business that requires 100% uptime. Gensets are a risk mitigator because usually, with proper maintenance, they can be ready to keep business running in an emergency. But have you considered that a capital expense like a genset is only used less than 1% of the time on average? For a similar cost, a Foundation Power DirectCore™ Solar+Storage solution solves power and grid instability with its capability to island your electrical infrastructure from the grid and continue operation even during grid shutdowns. Within milliseconds, the DirectCore™ recognizes the loss of power from the grid and switches to a grid-independent state, making your system an island of light in a world gone dark. Moreover, that asset works every typical day by shaving energy costs from the utility, lowering your monthly bills, and virtually eliminating any demand charges, which can account for almost 50% of a commercial utility bill. 

Recently, the California Public Utilities Commission produced a study finding that diesel gensets are a poor investment compared to Solar+Storage for utility support. The CPUC presentation indicated that the average 2019 outages lasted 2.14-2.25 days per event, with a total of 7 events last year. The December 2019 CPUC report calculated that provision and operation of diesel generators would cost $1736/MWh. This is to be compared to the current market value of around $36-$40.MWh and a Solar+Storage average of $110-310. These calculations for diesel don’t take into consideration air quality permitting waivers and do not account for any penalties users may have to pay.

REVENUE STREAMS

Even more attractive is the ability to become a player in the emerging Demand Response market. While there are specific incentives for renewable energy (ITC, SGIP), the rest of the electricity grid relies on markets and programs to operate effectively. PATHION’s DirectCore brings these markets to commercial and industrial customers in ways the renewable industry hasn’t previously done. 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, there are ways of controlling that energy so that it provides services to the grid at the same time it’s 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 PATHION’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.