Unlocking savings: How providers can cut costs with smart energy solutions
In today’s rapidly evolving energy landscape, Australia’s accommodation providers are feeling the pressure of rising electricity prices
From boutique hotels to large resorts and holiday parks, they’re all looking for ways to cut costs on their monthly electricity bills.
To stay ahead of the curve, many of these accommodation providers are seeking smarter ways to manage their energy use, cut costs and future-proof their profit margins.
Today, there are more options than simply shopping around for the best electricity deal—investing in battery storage is one of the most effective solutions to take back control of energy costs.
How battery storage works for hotels and accommodation providers
Battery storage systems allow your business to store electricity onsite, either from your own solar panels or from the grid.
For optimal cost-savings, the battery should be charged when wholesale electricity prices are low, or onsite solar generation is at its peak. This stored energy can then be used during periods of peak demand when grid prices spike.
This means hotels and accommodation providers can run energy-intensive systems like air conditioning, pool pumps, laundry, and kitchen equipment using cheaper, stored electricity, while avoiding exposure to high prices from the grid.
This article features in the new winter edition of AccomNews HERE
Five ways batteries help accommodation providers save:
1. Lower energy bills
Heating, cooling, and running hot water systems are some of the biggest energy expenses for accommodation providers and typically have minimal operational flexibility. If it’s a hot day, guests require cooling, no matter what the price of electricity is at the time.
This is where using a battery can lead to significant savings. Using energy stored in a battery to cool, heat or run other energy intensive operations during peak periods when electricity prices are highest can help reduce your overall costs, by reducing your reliance on the grid.
2. Reliable power for guest comfort
Power outages can disrupt guest experiences and affect your business’ bottom line. To protect your business from outages, batteries can be configured to provide backup power, keeping essential systems like lighting, security, refrigeration, and climate control running smoothly even during grid interruptions. This reliability is especially valuable in regional or remote locations where outages can be more frequent.
3. Maximise existing solar assets
If you’ve already invested in solar panels, batteries help you get the most out of the system. Instead of exporting excess solar energy to the grid at low rates, or potentially being charged for export, you can store it for later use, boosting your energy independence and maximising value from your existing investment.
4. Reduce peak demand charges
Many accommodation providers face high peak demand charges, which are fees based on your highest usage during certain periods. By using stored energy to run high-demand equipment or operations during these times, you can smooth out your energy usage and avoid costly spikes.
5. Enhance your sustainability credentials
Many guests are becoming increasingly discerning in looking for eco-friendly accommodation. Using batteries to store and use renewable energy can help cut your property’s carbon emissions – a valuable selling point for attracting environmentally conscious travellers and corporate clients.
Does your accommodation business need solar panels to benefit from a battery?
While batteries are especially powerful when paired with solar panels, you don’t need onsite solar to benefit. Australia’s growing renewable energy supply means there are often times when grid electricity is cheap and predominantly renewable, like during daytime solar hours, which is perfect for charging your battery.
In some states, overnight prices can also be negative due to wind generation, offering further savings opportunities.
Flexibility for the future
The energy market is evolving rapidly. With battery storage, your accommodation business gains the flexibility to adapt and take back control of electricity costs. By taking control of your energy use, you’re setting your business up for long-term success, no matter how the market changes.
To get the greatest potential for cost savings from a battery, hotel owners and accommodation providers should consider a retail contract with wholesale market exposure—like any of our contracts at Flow Power. Wholesale price fluctuations can lead to significantly greater savings than flat rates or peak/off-peak tariffs.
Get started with smarter energy choices
Partnering with an experienced energy provider can help you find the right battery solution tailored to your needs—unlocking savings, boosting sustainability, and powering your business into the future.
Article supplied by Flow Power
Stored energy presents a lot of challenges, safety being the largest. Offsetting peak demands is no easy task and typically the size of the stored energy and delivery system is super expensive. I believe the first step is to always use technology to control peak demand, PF correction and energy efficiency as the first step. Sure this tech doesn’t sound as sexy but they have a better return on capital spent and leads to smaller sized storage (if that ever stacks up).