As the United States accelerates its electrification efforts, the demand for efficient and flexible energy storage solutions is on the rise. Commercial and industrial (C&I) facilities face increasing pressure to manage energy costs and ensure resilience in their operations. With significant potential for savings through demand charge management, time-of-use pricing, and evolving incentives like those introduced in the Inflation Reduction Act (IRA), energy storage is becoming an essential component of the energy landscape. Pixii’s Battery Energy Storage Systems (BESS) offer a tailored approach, enabling US businesses to optimize their energy use, reduce costs, and generate additional revenue.
In the U.S., utilities often charge C&I customers not just for energy consumed (kWh) but also for their peak demand (kW). Demand charges can account for 30% to 70% of a customer’s monthly energy bill, creating strong economic incentives to flatten energy consumption peaks. For example, a manufacturing facility with a typical demand of 750 kW could see a spike to 1200 kW during high production periods. If the demand charge is $40/kW, that spike could add up to $48,000 in additional costs each month.
By leveraging energy storage, these facilities can reduce or eliminate these surges, leading to significant cost savings.
The economic case for energy storage becomes even more compelling with the IRA’s introduction of standalone Investment Tax Credits (ITC) for energy storage projects. Previously, the ITC was only available for storage paired with solar systems. Now, standalone energy storage projects with a minimum capacity of 5 kWh can benefit from a base ITC of 6%, or a bonus rate of 30% if the project meets prevailing wage and apprenticeship requirements.
This change significantly lowers the barrier to entry for energy storage investments, allowing more businesses to benefit from energy storage’s economic and operational advantages.
Pixii’s modular and scalable BESS technology offers a comprehensive solution for C&I customers, designed to address the unique needs of the U.S. market:
Pixii’s initial entry into the U.S. market focuses on partnering with OEMs, allowing for rapid integration of its proven technology into existing systems. This approach ensures that U.S. businesses can immediately benefit from Pixii’s expertise while the company works toward obtaining the necessary certifications for its turnkey solutions. As certifications are secured, Pixii intends to offer complete systems directly to C&I customers, providing a seamless transition from partnership-based integrations to comprehensive, standalone solutions.
The IRA has introduced several incentives that make energy storage projects more viable. Standalone energy storage systems installed after December 31, 2022, are now eligible for a 30% ITC if they meet specific labor requirements, or 10% adders if they use domestically produced components or are in designated “energy communities.”
These incentives, combined with state programs like California’s Self-Generation Incentive Program (SGIP), create an environment where energy storage investments can quickly pay off, especially when combined with Pixii’s technology. Pixii’s BESS solutions are well-positioned to take advantage of these incentives, making it easier for businesses to transition to sustainable and cost-effective energy management.
Pixii’s BESS technology empowers C&I customers across the U.S. to reduce costs, enhance energy resilience, and capitalize on new revenue streams. Whether through OEM partnerships or direct solutions, Pixii is committed to delivering high-value, flexible energy storage solutions that adapt to the unique needs of the American market.
With the added support of the IRA’s incentives, Pixii is poised to help businesses unlock the full potential of energy storage, driving both economic and environmental benefits.