Energy independence, energy consumption optimization, environmental protection, support for sustainable development and… significant money savings – energy storage is beneficial not only for the planet, but also for the investor's wallet! No wonder the topic of investing in energy banks is gaining popularity. Are you wondering how quickly the investment in a storage facility pays off? We suggest how to check it!
The energy storage calculator allows you to understand when the investment will be profitable and what benefits it can bring in the long term. It is a useful tool for both individual consumers and companies that strive to improve energy efficiency and reduce operating costs.
Storage pays off
The European market for home energy storage exceeded the limit of 1 GWh of total capacity in 2020. According to experts from SolarPower Europe, over the next 5 years this value will increase by approx. 134%! The growing popularity of home energy storage is the result of the increasing awareness of Europeans regarding the benefits of high self-consumption of energy produced by home photovoltaic installations.
What can investing in an energy storage facility give you? First of all, it will guarantee savings. An energy storage facility allows you to store electricity during periods of lower demand or lower prices, and then use it during periods of peak demand or higher energy prices. Using the network stored in the storage facility when prices are high is a way to reduce your electricity bills and generate savings.
Investing in an energy storage facility is an investment in energy independence. By increasing your self-consumption, you become largely independent from external electricity suppliers. In this way, you cut yourself off not only from power outages caused by failures and other factors, but also from price increases for electricity consumption. Interestingly, an energy storage facility can act as an emergency power source in the event of power outages or grid failures, which increases the reliability of the energy system.
An energy storage facility enables you to optimise your energy consumption by collecting energy from renewable resources during periods of low consumption and using it when demand is greater or energy prices are higher.
What's more, using a PV system with an energy storage facility allows you to reduce the consumption of energy from fossil fuels, which helps reduce greenhouse gas emissions. This means that energy storage has a positive impact on the natural environment. By investing in an energy storage facility, you are investing in a clean planet and a safe future.
There is no doubt, however, that investing in an energy storage facility requires significant financial outlays, so before making a decision it is worth conducting a cost-benefit analysis to assess the profitability of the project.
How to calculate when the investment in energy storage will pay off?
The payback period (ROI) for an energy storage facility depends on many factors. One of the key factors is the price of the energy storage facility itself. The lower the purchase and installation cost, the shorter the payback period.
Energy consumption is also a factor. The greater the energy consumption and the more diverse the consumption patterns, the greater the savings that can be generated by storage.
A key aspect is also a detailed analysis of market conditions, including electricity prices. In regions where energy prices are high, an investment in an energy storage facility may pay off more quickly. The payback time may also be affected by additional charges related to energy consumption. Therefore, it is important to consider all costs.
It is worth remembering that savings on electricity bills are not the only benefits of installing an energy storage. Investing in an energy storage also means energy independence, optimizing the operation of the energy system and reducing greenhouse gas emissions. These additional benefits can affect the overall payback time.
Return on investment time formula
ROI can be calculated using a simple formula that expresses the ratio of investment costs to the savings or financial benefits generated by the energy storage facility over a given period:
Payback time = total investment costs / expected annual savings or financial benefits, where:
- total investment costs are the sum of all costs related to the purchase, assembly and use of the warehouse,
- expected annual savings or financial benefits is the sum of all expected savings or financial benefits generated by the energy storage facility over a one-year period.
The payback period for an energy storage investment varies greatly and requires a thorough analysis for a specific project, taking into account all relevant factors. As a rule, this period should not be longer than a few years. It is also worth noting that technological development, cost reduction and increased efficiency may shorten the payback period for energy storage investments in the near future. Is it worth investing in a storage facility? There is no doubt about it!
