Energy Management Questions

The answer is complicated because there are numerous factors that go into calculating the delivered cost of renewable grid energy and onsite renewables. The short answer is “sometimes, but not always.” Despite being much smaller size/scale, on-site solar may provide lower-cost energy than buying renewables from the grid, but this is an artifact of how electric bills are determined, and thus requires considerable research to assess accurately. When you take into account demand and distribution charges (which can be 40% or more of your monthly electrical bill), these charges may or may not be reduced when you generate renewables onsite – It depends on whether your local utility permits a reduction in these non-energy charges. Also, tax incentives make this comparison confusing as well. Lastly, the availability of net metering, where your local utility provides you credits for excess onsite renewable energy delivered to the grid, will play a significant factor in the final calculation. Since electricity rates for commercial and industrial customers are lower than residential consumers, and as peak demand is shifting to early evening, we typically do not find that on-site solar is a wise investment for most companies. If you wish to reduce your electricity’s carbon footprint, purchasing grid renewable energy or renewable energy credits are both alternatives worth considering.

Behind the Meter Solar. A good idea?

Renewables are not the cheapest form of power

This is one of the most over-hyped terms used in the marketplace, and its use causes such confusion that a number of organizations, including the Federal Government, are now trying to establish an clear and comprehensive definition (which has not succeeded). In its most simplistic form, a Microgrid is a combination of load and generation that can interoperate with the grid or disconnect from the grid and continue to operate without making compromises.

This is complicated by the lack of a clear definition of a Microgrid. Studies show that a microgrid comprised of only a natural gas backup generator configured for grid participation and demand response provided the best returns on investment, lower overall energy costs, and provides resiliency when the grid is down. All other microgrid configurations, including solar, battery, and biomass delivered lower returns than just natural gas backup solution.

If you are interested to measure your energy intensity and carbon footprint, Energy Star® is a great software solution. For organizations required to report and benchmark this information, Energy Star® is the easiest way to do so, and it’s free. If your facility qualifies for an Energy Star® rating (which certifies the energy efficiency of the building), it will increase the value of the property.

Exergy’s business model incentivizes you to be as energy efficient as possible.

Energy is Exergy’s business; we have greater resources and capabilities to provide efficiency and resiliency solutions than if you attempted to secure them yourself. With Exergy as your Concierge Utility™ you can feel confident that we are doing everything economically possible to maximize the sustainability of your operations.