How storage can help you avoid peaking energy prices
As heatwaves and energy blackouts become more frequent, expensive peaking energy prices are to be expected. However, the recent surge in wholesale electricity prices in Texas exemplify yet another reason why home energy storage is worth the investment.
A home-battery could’ve saved Texans from heatwave surge prices
A recent heatwave had some Texans paying up to $9 per kWh, causing them to rack up electricity bills of hundreds of dollars over the course of just a couple of days.
A company by the name of Griddy sells wholesale electricity directly to customers without the traditional markup, compared to other energy providers. Think of it as the Costco of electricity companies: instead of a fixed cost per kWh, customers pay a membership fee, and in return get the wholesale spot market price.
As recording-breaking temperatures hit, it’s no wonder Texans choose to crank their power-hungry air-conditioners to combat the heat. However, this sudden electricity demand exceeds what the grid could possibly supply. In turn, this imbalance in the grid causes a surge in peak prices, leaving Griddy customers to pay the spot market price of electricity. As you can see, this turned out to be pretty darn high.
The combat fighter against peak prices and grid imbalances
While this is a remarkably unique occurrence, it is this very imbalance that highlights the importance of energy storage. In this case, the ability to store off-peak energy would allow for these wholesale customers to avoid these surge prices and simply use their previously stored energy during these peak-hours.
On a global scale, it’s apparent electricity prices are on the rise. A home-battery proves as a solid investment in withstanding the a financial hit you may face when the electricity demand exceeds the grid’s supply.
Adding individual storage systems to the energy mix actually benefits everyone connected to the grid, and not only to those who adopt a home battery. When the demand is high and prices start to go up, storage is able to step in and effectively reduce peak prices by relieving the grid of its high energy demand. That is to say, energy storage helps those who don’t have access to a battery by balancing the grid for everyone.
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