Small businesses like Black Seed Bagels are finding innovative ways to reduce their reliance on the electric grid and lower their monthly utility bills. In an effort to combat hefty demand charges, which can make up a significant portion of their total bill, Black Seed has turned to using plug-in batteries to power their appliances during peak times.
The Brooklyn bagel shop, known for its hand-rolled, wood-fired bagels, has partnered with David Energy, a New York-based retail energy provider, to implement this innovative solution. By using batteries to power energy-intensive appliances like refrigerators and ovens, Black Seed aims to reduce its peak grid needs and ultimately save on utility costs.
The battery pilot program, which began last August, has already shown promising results. By strategically using batteries to power appliances, Black Seed has the potential to save thousands of dollars in avoided utility costs across its 10 locations in New York City. This strategy not only benefits the bagel shop financially but also helps reduce its environmental impact by relying less on traditional grid power.
David Energy’s CEO, James McGinniss, sees great potential in this “do-it-yourself battery” strategy for small businesses facing rising electricity costs. The company has already installed batteries at various businesses, including fast-food restaurants, day spas, and even a dog grooming store. With over 50 locations signed up for the plug-in battery program, totaling more than 500 kilowatt-hours of energy storage capacity, the pilot is demonstrating the feasibility and benefits of DIY energy technologies for businesses.
This plug-in battery pilot program is part of a broader trend towards innovative energy solutions that empower consumers to take control of their energy usage. As solar and batteries become more affordable and accessible, businesses and households are exploring ways to reduce their reliance on the grid and lower their energy bills. Companies like David Energy are at the forefront of this movement, providing customers with clean energy alternatives that not only save money but also help build a more sustainable energy future. New York City has long been concerned about the fire risks associated with lithium-ion battery installations, leading to strict fire-safety regulations that have made such projects impractical for most building owners. However, last fall, the New York City Buildings Department introduced new rules that could make these projects more cost-effective, offering a glimmer of hope for the industry.
One company, David Energy, has taken a unique approach to the issue by supplying batteries to customers for free. While the financial details of this program remain undisclosed, the company claims that it offers both cost-saving opportunities for customers and revenue-generating potential for the business.
For customers, the primary benefit lies in reducing demand charges on their monthly utility bills. These charges are based on the maximum amount of power a business draws from the grid during any 15-minute period in a month. By using stored battery power to reduce peak electricity use, customers can significantly lower these charges, which can make up between 15% and 50% of a typical commercial customer’s monthly bill in New York City.
David Energy leverages the stored battery power not only to attract and retain customers but also to earn revenues for itself. By participating in demand-response programs, the company can reduce power use during peak demand periods, earning additional income. Additionally, retail electricity providers can leverage battery systems to pursue arbitrage opportunities in wholesale energy markets, further increasing revenue potential.
The economics of customer-facing arbitrage improve as deployment scales up, offering a portfolio effect that unlocks more value over time. David Energy is expanding its operations in Texas, New York, and other Northeast markets to capitalize on these opportunities.
While the installation of large-scale batteries in buildings presents some risks and challenges, portable batteries offer a more flexible and less risky option. Customers can easily switch providers if they are dissatisfied, as the batteries can be easily removed and replaced. Despite the challenges, there is growing excitement around the potential for large-scale battery installations in buildings, particularly as policymakers push for electrification in New York City. Black Seed Bagels, a popular bagel shop known for its delicious offerings, primarily relies on fossil-gas appliances and heating systems in its stores. However, with the push towards sustainability and electrification, the company may be required to switch to electrified versions in the near future. This shift could lead to higher electricity bills and strain on the local grid. To address these challenges, Black Seed Bagels is considering the use of industrial batteries to manage its energy consumption more efficiently.
Owner Noah Bernamoff sees the potential of incorporating batteries into the store’s infrastructure as a game-changer. By utilizing batteries, Black Seed Bagels could reduce peak power demand at the service level, providing a more holistic approach to energy management. This means that every outlet, light bulb, and appliance in the store could be better managed and optimized for energy efficiency.
“The industrial battery side of it all could be really interesting,” Bernamoff expressed during a recent discussion. Sitting at a café table beneath a poster advertising the store’s signature scallion-kimchi cream cheese, he elaborated on the benefits of integrating batteries into their operations. “To the extent that we’d be able to reduce peak power at the service level, instead of piece by piece, now we’re really talking. Because then every outlet, every light bulb is being better managed and reduced.”
By implementing industrial batteries, Black Seed Bagels could not only reduce its electricity bills but also contribute to a more sustainable future. The batteries could store excess energy during off-peak hours and discharge it during peak demand, helping to alleviate strain on the local grid. This innovative approach to energy management aligns with the company’s commitment to environmental responsibility and could set a new standard for other businesses in the food industry.
As Black Seed Bagels explores the potential of industrial batteries in its stores, customers can look forward to enjoying their favorite bagels and spreads in a more sustainable and energy-efficient environment. With a focus on innovation and sustainability, Black Seed Bagels is poised to lead the way in reimagining the future of food service operations.
