Commercial vs. Residential Energy Storage Systems: What’s the Difference?

Commercial energy storage systems (ESS) and residential energy storage systems are similar in many ways, but there are some key differences that set them apart. Here’s a comparison of commercial vs. residential ESS:

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1. Size and Capacity: Commercial ESS are typically larger in size and have a higher capacity than residential ESS. Commercial ESS is designed to carry a significant amount of load, while a residential ESS is primarily for home use.
2. Energy Needs: Commercial ESS usually have a much higher energy demand than residential ESS, which are often designed to support the energy needs of a single household. Commercial ESS are often used to power entire buildings, facilities, or industrial operations.
3. Cost: Commercial ESS is generally more expensive than residential ESS since they require more energy storage capacity and larger-scale components. However, the initial costs can be cheaper for commercial ESS since they are ideal for supporting renewable energy and reducing overall energy costs.
4. Accessibility: Commercial ESS usually require professional installation, while residential ESS can be installed by homeowners.
5. Modular Design: Commercial ESS may be designed to be modular, where units can be added as power requirements increase, but having multiple residential ESS units is often impractical even if it’s possible.
6. Safety Standards: Commercial ESS are subject to higher safety standards, which are necessary due to their larger size and capacity. Residential ESS, on the other hand, are not used for large-scale commercial or industrial activities and have less stringent safety and performance requirements.

Overall, while residential and commercial ESS share similarities in their core functionality, the key differences lie in their capacity, energy output, and access to professional installation and safety standards. As such, the type of ESS required is dependent on the specific needs of the users and the scale of the energy storage requirements.

Residential energy storage systems (ESS) using lithium-ion batteries can present safety challenges for homeowners and firefighters. While the failure of residential ESS lithium-ion batteries is a rare event, fire and explosion hazards have already occurred. This guide provides steps homeowners and ESS installers can take to minimize these hazards. ESS are electrical devices that can pose shock hazards when in unsafe conditions, such as when wet or damaged. Like laptops, cellular phones, e-bikes, electric vehicles and power tools, residential ESS contain lithium ion batteries which can fail and experience thermal runaway. Thermal runaway failures result in rapid heating, ejection of hot material and the release of flammable and toxic gas, which can create fire and toxic gas/smoke hazards. Thermal runaway of all the lithium ion cells within a residential ESS unit can release a volume of flammable gas similar to a 20 lb propane tank, commonly used in backyard grilling. Thermal runaway also presents an explosion hazard if the resulting flammable gas accumulates in an enclosed space, and then ignites. The force from an explosion could cause bodily injury or death and property damage, including broken windows, structural compromise and the spread of debris. Fortunately, thermal runaway failures are unlikely. Homeowners and ESS installers can take simple actions to reduce both the likelihood and consequences of ESS failures.

Safety Guidelines

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Install ESS systems from reputable manufacturers whose equipment is listed as certified to UL ¹ and UL ²

What to Install:

Installers should be licensed electricians

Who to install:

Installers should be certified by the ESS manufacturer

Make sure that ESS battery, inverter, controller and photovoltaic system components are compatible as recommended by all associated manufacturers

How to Install:

Installation should follow manufacturer’s instructions

Installation should be performed according to locally adopted building codes and standards. The most up-to-date common requirements are usually based on:

International Residential Code: Section R328 Energy Storage Systems³

NFPA 855: Standard for the Installation of Energy Storage Systems - Chapter 15⁴

Where to install:

What you can do:

Register your ESS with the manufacturer and connect it to WiFi to allow monitoring. Stay up to date on any firmware updates and safety recalls.

Have working smoke detectors. Check regularly and change the batteries as needed.

Check regularly to make sure that the manufacturer recommended clearance or 3’ feet of clearance is maintained. Remove objects and debris, especially flammable material.

Trim vegetation that may be growing near the ESS, especially close to the clearance zone.

Keep a fire extinguisher handy in your house. You will not be able to stop thermal runaway of your ESS. But if you can extinguish a non-ESS fire while it is small you can prevent the ESS and the rest of your house from becoming involved. DO NOT attempt to stop an ESS fire with a fire extinguisher.

In case of fire, smoke, gas, or chemical odor evacuate and call 911.

In case of abnormal behavior, damage or swelling of ESS equipment call technical support or qualified technicians.

[1] https://www.shopulstandards.com/ProductDetail.aspx?productId=UL_2_S_ [2] https://www.shopulstandards.com/ProductDetail.aspx?productId=UL_3_S_ [3] “Section R328 Energy Storage Systems,” in International Residential Code (IRC) | ICC Digital Codes, ICC, . Accessed: Jan. 31, . [Online]. Available: https://codes.iccsafe.org/content/IRCP2/chapter- 3-building-planning#IRCP2_Pt03_Ch03_SecR328 [4] “NFPA 855: Standard for the Installation of Stationary Energy Storage Systems.” https://www.nfpa.org/codes- and-standards/all-codes-and-standards/list-of-codes-and-standards/detail?code=855 (accessed Jan. 31, ) [5] “About the NEC” https://www.nfpa.org/nec/ (accessed May 9, )

References:

Prepared by:

Lakshmi Srinivasan

Goto CHANGINGTECH to know more.

Senior Technical Leader

Erik Archibald, PhD, PE

Partner / Senior Engineer

NFPA 705: National Electrical Code⁵

Where to AVOID:

Install in a safe location

Outdoors (most preferred) Indoor in a detached garage Indoor in an attached garage

Mount ESS on non-flammable material, such as masonry, metal, gypsum, etc.

Follow manufacturer’s clearance recommendation or provide a minimum 3’ clearance around the ESS to allow for adequate cooling and prevent the spread of fire

These simple actions can reduce the likelihood and consequences of ESS hazards.

Avoid areas subject to flooding or water leaks from above Avoid areas subject to snow accumulation. Place outdoor ESS above typical maximum snow level

Avoid areas subject to interference from children, pets and wildlife Avoid areas subject to falling items

Avoid areas subject to accidental vehicle impact. If in a space with vehicles, put bottom of ESS above hood level or install barriers to prevent impact.

Avoid areas subject to temperature extremes, such as south-facing walls in hot climates. Do not place near heating equipment

Avoid proximity to flammable vegetation or other flammable materials

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EPRI Hillview Avenue, Palo Alto, California - USA • 800.313. • 650.855. • • www.epri.com © Electric Power Research Institute (EPRI), Inc. All rights reserved. Electric Power Research Institute, EPRI, and TOGETHER…SHAPING THE FUTURE OF ENERGY are registered marks of the Electric Power Research Institute, Inc. in the U.S. and worldwide.

Stephanie Shaw, PhD

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Fire/Explosion

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Electrical and shock hazards can be avoided through careful design and protection against water and dust intrusion.

Battery failures can result in fire and explosion hazards. They can be avoided by taking proper precautions.

Physical impact from a vehicle or by dropping can cause battery failure and potentially lead to a fire. Use qualified installers and maintain a clearance zone around the battery.

Stored energy of any kind is a hazard. In the case of abnormal operation, damage, or swelling, immediately contact a qualified technician or the manufacturer.

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