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In retail, telecommunication, industrial and commercial real estate establishments businesses are moving faster to abandon the old-fashioned lead-acid batteries and adopting modern lithium battery systems. This change is motivated by the declining lithium prices, better safety of LiFePO4 chemistry and increased energy efficiency is required. Three major reasons that explain why commercial lithium adoption is on fire are provided below.
Why Businesses Are Replacing Lead-Acid with Lithium Battery Systems
Business activities require dependable power that is low maintenance. Lead-acid batteries need frequent watering, equalization charging and hydrogen gassing ventilation. They also have short cycle life-normally 300-500 cycles- and insufficient depth of discharge (50-60% DoD), half of the rated capacity is not available.
These disadvantages can be overcome with lithium iron phosphate (LiFePO4) batteries. They need no maintenance, do not emit any harmful gases and can give 3,000 to 6,000 cycles with usable capacity of 80-100%. In the case of a telecom shelter or retail store with daily discharges cycles, a lithium battery has a life of 8-15 years versus 3-5 years with lead-acid. The increased upfront expense is recouped by fewer replacements, reduced labor and reduced HVAC.
Commercial Energy Storage Use Cases: Retail, Telecom, and Industrial Facilities
Retail: Peak shaving (to save on demand charges) and backup power of refrigeration and POS systems are done by large grocery stores and big-box stores using lithium battery storage. In the event of grid outages, lithium systems will make a smooth transition avoiding spoilage and lost sales.
Telecom: The towers and central offices will need 24/7 DC power. Lithium batteries can deal with high frequency discharge due to grid variations and generator start lag. Their smaller size (30-60% smaller than lead-acid) is essential in congested telecom huts. The wider temperature range of Lithium (-20oC to +60oC) is also an advantage of remote towers, where active cooling is unnecessary.
Industrial Facilities: Lithium battery storage is used in uninterruptible power supply (UPS) in manufacturing plants to power sensitive automation equipment, to stabilize voltage, and to shift loads. Welding lines and conveyor, and robotic cells require clean consistent power which lithium provides without voltage sag.
ROI Benefits of Lithium Batteries in Peak Shaving and Backup Power
Commercial lithium storage is getting more and more financially attractive. The two applications have the highest rate of return on investment:
Peak shaving: Commercial power rates have demand charges that are determined by the maximum 15-30 minute power demand per month. Li batteries will release in times of peak demand and decrease peak draw of the facility by 20-40%. Peak shaving has the potential to save a medium-sized retail store with a demand charge of $15/kW in the range of $5,000 to $15,000 every year. Having a lithium system life of 10+ years, total cost savings can oftentimes surpass the initial investment by 2-3 times each.
Backup power: The conventional lead-acid UPS batteries need to be replaced every 3–5 years, and take up a lot of space on the floor. Lithium UPS systems have 60-70 times less replacement frequency, operate at lower cooling costs and recharge time (1-2 hours compared to 6-12 hours in the case of lead-acid). The risk reduction offered by lithium is measurable in terms of reliability and quick recharge to data centers, hospitals and telecom facilities where downtime expenses are over $10,000 per hour.
Conclusion
The commercial demand of lithium batteries is increasing at a high rate in retail, telecom as well as industrial facilities. Businesses are substituting lead-acid with lithium to operate without maintenance and extend its life besides better total cost of ownership. Peak shaving and backup power applications provide attractive ROI in terms of decreased demand charge and lower replacement cycles. Shenzhen Weitu Hongda Industrial Co., Ltd. offers a one-stop personalized power solutions, such as UPS system, solar inverters and energy storage supported by ISO and CE certifications. Get in touch with us over your commercial lithium battery project.