A new offering from Siemens Financial Services (SFS) means customers have an affordable way to access SIESTORAGE, Siemens’ cutting-edge energy storage technology, without committing capital up front.
SIESTORAGE technology helps users defer electricity purchases from peak times to cheaper periods, making significant savings on electricity and network costs. The modular system, which is based on Lithium-ion battery technology, typically suits customers with on-site consumption of between 1MW and 100MW.
Electricity costs present a major challenge for businesses. Complex regulation-driven invoices can be difficult to understand and the rapid decline of electricity generation from fossil fuels in the UK has led to price fluctuation. Certain key periods attract higher tariffs but, in many cases, for organisations to reduce usage at peak times would mean an interruption to core business activities. At the same time, companies can also experience service interruptions and voltage reductions which can impact industrial processes, particularly those that have high energy usage.
Whilst energy storage solutions present a valuable option for many businesses, few are willing or able to commit the necessary capital to access the technology. SFS, however, is able to help organisations overcome the challenges of energy storage solution acquisition by tailoring financing packages to suit the cash flows of each customer. The ‘outcome-based’ financial model means that customers’ payments are based of the battery’s output, rather than outright purchase for the battery itself.
Ian Tyrer, Head of Sales – Energy Finance, Siemens Financial Services comments: “Throughout our business we are seeing a growing a trend of outcome-based financial models or ‘pay-for-outcomes’, where customers pay for what the technology delivers rather than the technology itself. This financial model which allows customers to access SIESTORAGE without committing capital up front is a perfect example.”
Bridgit Hartland-Johnson, Head of Energy Storage – Siemens Energy Management, adds: “SFS’ specialist pay-for-outcomes offering, combined with world class technology, provides an excellent opportunity for organisations to access new and cost effective business solutions. For the majority of companies, electricity is an unavoidable cost, however, these costs can be significantly managed and reduced through careful control and innovative business ideas.”