Commercial customers who adopt energy storage in PG&E’s territory currently have an energy cost saving advantage because they qualify for the utility’s Option S rate.
Option S features a daily peak demand charge instead of a monthly one used in other programs. By assessing peak demand on a daily basis, Option S creates a better value proposition for energy storage, because the battery can generate savings from peak reduction every single day, rather than once a month.
When combined with California’s Self-Generation Incentive Program (SGIP) — which offers a cash incentive for energy storage that can offset up to 50 percent of the energy storage hardware costs — and the Federal Investment Tax Credit (ITC), PG&E customers have access to more savings than any other utility in California.
Why Energy Storage Now
With the ITC set to decline next year to 26 percent, customers who install solar and energy storage now will benefit the most. Also, Option S is a capped pilot program so interested customers should speak with a qualified energy storage project developer soon to see if this program is right for their company.
The U.S. Energy Information Administration (EIA) expects commercial sector electricity prices to increase by 0.2% in 2019 and by 0.3% in 2020. By proactively adopting solar and storage now, along with smart controls, larger private sector energy companies can gain a competitive edge to lower costs and reduce risk. As facilities grow more energy self-sufficient, they’re also free to focus on their core missions.
Download our PG&E Option S Energy Storage Guide today to see sample savings and learn more about how your business or organization can take advantage of this current opportunity.