Frequently Asked Questions
What is a microgrid?
At Scale, we like to think of microgrids as a smart interconnected system of energy, including clean supply, storage, and demand applications. Our microgrid smart controls allow us to isolate individual components as needed, providing the ability to achieve the most efficient method of matching energy needs with energy sources and protect your operations during outages.
Why would I want a microgrid? and further, why a Rapid Response Modular Microgrid (R2M2)?
A microgrid can provide many benefits to the host facility including operational, financial, and environmental sustainability objectives. The need for electrical energy resilience is a key driver in the decision to pursue a microgrid. However, if the local utility does not have the capacity to handle the facility loads then a microgrid can provide the necessary power for your operations. A microgrid offers financial benefits by providing savings on your utility bills from a less expensive energy supply and the ability to save on delivery, demand, and capacity charges, even providing the opportunity to obtain a lower tariff rating. The microgrid can also generate environmental credits and other ESG benefits.
But the fact of the matter is that microgrids take months, if not years, to be fully deployed. Most microgrids are custom projects, often costing a lot of money, and dragging on for very long periods of time. A Scale R2M2 microgrid is the simplest, most efficient way of obtaining a microgrid. R2M2 offers a flexible yet scalable solution, with a shorter lead time and project development cycle. And the best part - because of their modular nature, a Scale R2M2 microgrid can easily be expanded by adding additional microgrid modules to existing systems to accommodate operational growth and increased energy needs.
Why do I need a microgrid when I can just install solar? Why is a microgrid better than just solar and a battery?
a. Solar PV is a great technology for reducing energy costs and increasing the sustainability profile of your facility. Solar is tied to the electricity grid, so when there is an outage, it is unavailable. For many, solar is often the first step on the path to a more holistic solution that can deliver far more value. Adding a battery to an existing solar array can help further reduce electricity spend by decreasing utility demand charges. The microgrid offers a wide range of benefits ranging from even deeper savings than the solar or solar and storage project, energy resilience to protect against utility outages, and in many cases significantly lower carbon emissions than solar could achieve alone. In this case the microgrid would incorporate another type of distributed energy resource such as a reciprocating engine or fuel cell using hydrogen as fuel.
b. With a microgrid, there is load metering and control which can provide you with data to understand and optimize your own business better than before and additional revenue streams such as demand response and virtual power plants.
How long does it take to build a microgrid?
Most of our R2M2 microgrid projects are completed in 6-12 months from concept to COD, depending on the project’s complexity, size, and the local permitting process. We have designed, built, and commissioned some projects in as few as 4 months, and we see an opportunity to move in this direction as our standard when considering portfolio opportunities. For one-off projects, the project schedule is driven by equipment lead times. For large orders of the same R2M2 modules we are on a path to reducing lead times down to 8-10 weeks.
How much does it cost? What is the payback period, or return on investment?
a. Scale typically offers to design and build microgrids using the capital sale or “energy-as-a-service” models. Under the capital sale option, the microgrid typically costs between $1,000 - $2,500 per kW installed depending on which DERs are used and in what quantities. Higher Capex budgets usually result in lower Opex. Typical payback periods range from 5 - 8 years on a 25-year system life.
b. In the “energy-as-a-service” model, Scale uses a Microgrid Services Agreement (MSA) to provide the capital stack through leveraging tax credits, incentives, and our own capital to offer a $0 down services agreement. Customers save money through utility savings in the first year of operations and continue to accrue savings for the life of the project.
How is a microgrid different from a backup generator?
At Scale we often describe backup generators as “cost centers” while microgrids are referred to as “profit centers”. Backup generators deliver one service, resiliency, while microgrids deliver a more robust resiliency solution, energy savings, and sustainability benefits. Microgrids are more resilient than backup generators because they typically include a variety of DERs that rely on different fuel sources, eliminating a single point of failure. Additionally, diesel generators are often configured to power only critical or life safety loads as designated by code. The microgrid is usually designed to power the full facility indefinitely, while also including load shedding capabilities to extend coverage for a prolonged outage.
How will this system meet my future needs? I am planning on expanding my business.
The R2M2 is a modular, stackable solution that is designed to expand as needed. The Advanced Microgrid Switchboard (AMS) allows for future breakers by specifying a larger main bus from day one. Future breakers can be allocated to building loads, electric vehicle chargers, and additional distributed energy resources to augment existing capacity. Further considerations are made from a site layout and planning perspective that allow new energy modules to be dropped in as “plug and play”. When the grid capacity and your electric utility cannot act fast enough, the R2M2 platform is designed to give you the fastest impact for your business growth needs.
How much space do I need for a microgrid?
R2M2 is containerized in units similar in size to a shipping container (40x8’). Each unit is approximately 1MW, depending on the specific DER. These units can be stacked to 20MW or more. The solar PV array is typically built to maximize roof or parking lot space and can be enlarged if extra land is available for a ground mount array.
How much will it reduce my emissions?
a. Microgrids built from solar PV, battery energy storage, and hydrogen generation can reduce your facility’s emissions by 100%. Various factors need to be considered, including the source of the hydrogen, for the microgrid to be considered 100% clean.
b. For sites without hydrogen, Scale is building predominantly solar, storage, and natural gas microgrids that reduce emissions between 50-75% below business-as-usual grid purchases (depends largely on local grid energy supply and varies widely across the country).
How long can I continue operating during a blackout?
Scale’s microgrids are designed to provide multiple days of uninterrupted backup power. In some cases, the solar and storage assets alone can provide up to 48 hours of clean backup. When solar and storage alone aren’t enough, backup power depends on fuel availability. With hydrogen storage on-site, it is important to size the fuel tank to meet your resilience requirements. The solar and storage help to offset fuel usage by the generator in an outage. In the case of a natural gas microgrid, the generators are rated as prime power units and can continue running for weeks with an uninterrupted supply of pipeline natural gas.
Does Scale maintain the microgrids that they develop?
a. Yes, Scale offers comprehensive asset management services. Scale’s Network Operating Center (NOC) offers 24/7/365 remote monitoring, sensing, and real time alerts. Scale’s network of technicians provides preventative and proactive maintenance, equipment replacements, and subject matter experts in key hubs that respond to more challenging issues on demand.
b. Scale’s warranty covers the lifetime of the agreement under the MSA structure, at a minimum of 10 years for a capital sale.
Do I need to hire an energy expert to manage a microgrid?
No. For microgrids purchased under a Microgrid Services Agreement (MSA), all operations, maintenance, ongoing optimization, and asset management are included in the annual fee. If the microgrid is purchased as a capital sale, Scale offers comprehensive maintenance packages.
