How BC Businesses Can Cover over 90% of Energy Storage Costs

Frustrated by the increasing cost of energy in your facility? A battery energy storage system (BESS) can give you control over your energy costs. But the upfront price can be intimidating.

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Manufacturing businesses in British Columbia, Canada, can cover over 90% of their BESS costs using available grants and incentives.

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Here is the 92% savings formula for BC manufacturing businesses.

Here’s the simple math on how provincial and federal programs can drastically cut the cost of your battery storage project:

• BC Hydro Energy Storage Incentive (ESI): Covers 80% of project costs. Some regions may qualify for additional coverage; consult your BC Hydro key account manager to determine eligibility for increased support.
• Refundable Federal Tax Credit: Get another ~6% back on your tax bill.
• Accelerated Depreciation: A tax write-off that saves you roughly 6%.
• Total Potential Savings: Roughly 92%

Let’s calculate your potential savings.

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How a BC manufacturer is set to maximize project funding with energy storage.

Here's a real-world example: A BC-based manufacturing facility is struggling with significant demand charges.

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They plan to invest in a 2 MWh battery system with a project cost of $1.5 million. By strategically using available incentives, they forecast to reduce their net out-of-pocket expense to just $135,000. With significant upfront savings and ongoing reductions in their monthly bills through peak shaving, the facility is on track to see a rapid return on its investment.

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This is the power of stacking these programs. Now, let's break down how they work.

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What are the incentives available for BC businesses?

BC businesses can layer three powerful financial incentives to make energy storage incredibly affordable.

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1. The BC Hydro Energy Storage Incentive (Up to 80% Coverage)

BC Hydro wants to stabilize the grid, and they are offering robust incentives to businesses to install energy storage systems. Their incentive program can cover up to 80% of your total project costs (including the battery, engineering, and installation) if the business demonstrates that the battery will help reduce grid demand during critical peak demand events.

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2. The Federal Clean Technology Tax Credit (~6% Savings)

In addition to provincial support, the federal government offers a refundable Investment Tax Credit (ITC) of approximately 6%. This program is guaranteed until 2034, providing long-term certainty for businesses investing in clean technology.

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3. Accelerated Depreciation (~5% Savings)

Clean energy equipment, including batteries, qualifies for a considerable tax advantage under CCA Class 43.1/43.2. This rule allows you to write off the equipment's value much faster than other assets. This accelerated write-off can translate to an additional cash-value saving of around 5% of the project cost, depending on your tax situation.

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Disclaimer: The exact savings are directly dependent on the owner's marginal tax rate. Higher marginal tax rates will equate to additional tax savings, whereas lower marginal tax rates will equate to reduced tax savings. We always recommend speaking with an energy consultant and a financial advisor to map out your specific benefits.

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What if I don't have the upfront cash?

We understand that even 10% of a large project's cost can be a significant capital expense. To help you overcome this, we offer flexible financing solutions that eliminate the barrier of upfront costs.

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Our plan transforms a significant one-time capital outlay into an accessible operating expense, requiring only a small down payment.

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Additionally, we designed the plan that works seamlessly with the BC Hydro (ESI) and tax credit timelines.

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You can benefit from lower energy bills and a more resilient operation without a major capital outlay.

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Ready to see your numbers?

Find out exactly what you could save. Contact us for a complimentary load-profile analysis. 

We'll assess your energy usage and provide a detailed financial breakdown showing how these incentives could work for your business.

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