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They also don’t work everywhere as solar and wind resource varies from location to location, as well as incentives and rebates. Large energy consumers are increasingly looking to procure their renewable energy from off-site projects.
However, many on-site systems simply can’t scale large enough to cover full consumption needs, so they typically only cover a percentage of the facility’s needs, relying on traditional electricity to cover the deficit. They also don’t work everywhere as solar and wind resource varies from location to location, as well as incentives and rebates.
Off-site renewables generally require an agreement with an outside utility. Both on- and off-site projects can include but are not limited to solar farms, biomass, landfill gas, hydro, and wind, depending on their geographic location and resource availability. Many benefits exist for both on- and off-site systems.
Many benefits exist for both on- and off-site systems. On-site systems offer a better return on investment because financial savings are across the entire electricity supply chain – costs associated with energy generation, transmission and distribution, market volatility, and environmental costs.
On-site systems offset these costs as you’re generating your own electricity. However, many on-site systems simply can’t scale large enough to cover full consumption needs, so they typically only cover a percentage of the facility’s needs, relying on traditional electricity to cover the deficit.
First, let’s define each. On-site renewables, aka direct, are “behind the meter” systems at a specific location, providing energy on-demand or via on-site storage (i.e., batteries). These are typically financed, owned, and managed by the company themselves.
The global industrial and commercial energy storage market is experiencing explosive growth, with demand increasing by over 250% in the past two years. Containerized energy storage solutions now account for approximately 45% of all new commercial and industrial storage deployments worldwide. North America leads with 42% market share, driven by corporate sustainability initiatives and tax incentives that reduce total project costs by 18-28%. Europe follows closely with 35% market share, where standardized industrial storage designs have cut installation timelines by 65% compared to traditional built-in-place systems. Asia-Pacific represents the fastest-growing region at 50% CAGR, with manufacturing scale reducing system prices by 20% annually. Emerging markets in Africa and Latin America are adopting industrial storage solutions for peak shaving and backup power, with typical payback periods of 2-4 years. Major commercial projects now deploy clusters of 15+ systems creating storage networks with 80+MWh capacity at costs below $270/kWh for large-scale industrial applications.
Technological advancements are dramatically improving industrial energy storage performance while reducing costs. Next-generation battery management systems maintain optimal operating conditions with 45% less energy consumption, extending battery lifespan to 20+ years. Standardized plug-and-play designs have reduced installation costs from $85/kWh to $40/kWh since 2023. Smart integration features now allow multiple industrial systems to operate as coordinated energy networks, increasing cost savings by 30% through peak shaving and demand charge management. Safety innovations including multi-stage fire suppression and thermal runaway prevention systems have reduced insurance premiums by 35% for industrial storage projects. New modular designs enable capacity expansion through simple system additions at just $200/kWh for incremental capacity. These innovations have improved ROI significantly, with commercial and industrial projects typically achieving payback in 3-5 years depending on local electricity rates and incentive programs. Recent pricing trends show standard industrial systems (1-2MWh) starting at $330,000 and large-scale systems (3-6MWh) from $600,000, with volume discounts available for enterprise orders.