What Is Energy Arbitrage? - A simple explanation for busines
Energy Arbitrage Explained
Energy arbitrage is the process of buying electricity when prices are low (usually during off-peak hours) and storing it in a battery to be used or sold back to the grid when prices are high.
This strategy allows businesses to maximise energy savings and generate additional revenue by taking advantage of fluctuating electricity prices.
How Energy Arbitrage Works with the PulseSolar BESS:
- Charge During Off-Peak Hours: Your battery storage system absorbs energy when electricity rates are lowest (e.g., overnight or during periods of high renewable generation).
- Store for Strategic Use: The U Energy EMS monitors real-time pricing and optimises battery usage based on your business’s energy demand and market conditions.
- Discharge at Peak Rates: When electricity prices spike during peak demand periods, your system uses stored energy instead of buying expensive grid electricity, significantly reducing costs.
- Sell Excess Energy Back to the Grid: If your battery is full and prices are high, you can sell surplus energy back to the grid, creating an important and additional revenue stream.
Why Energy Arbitrage Matters for Your Business
✅ Lower Energy Costs: Reduce reliance on high-priced grid electricity during peak hours.
✅ Higher ROI: By leveraging battery storage intelligently, businesses can achieve even faster payback periods on their solar investment.
✅ Grid Independence: Minimise exposure to energy price volatility and enhance energy security.
✅ Sustainability & Carbon Reduction: Store excess renewable energy and use it efficiently, cutting emissions and supporting Carbon Zero targets.
With the PulseSolar premium solutions and U Energy EMS, we help businesses and organisations fully automate energy arbitrage, optimising savings and revenue generation with real-time intelligence.