6 Things to Know Before Your Microgrid Installation

Microgrids are an excellent way to ensure your facility or campus never loses power, even when your main grid is down. After you reach out to a microgrid installer, they can help you develop a personalized microgrid solution designed to generate power for you and reduce your dependence on your local utility grid. If you’re considering setting up a microgrid at your business, campus, or facility, take a moment to learn more about some of the six most important things to know about microgrid installation.

1. What a Microgrid Is

While a somewhat misunderstood term, a microgrid system refers to a decentralized power plant that can work autonomously to generate energy on-site or in conjunction with an existing electric grid. Microgrids contain one or more types of distributed energy resources that produce power. For example, a microgrid may feature wind turbines, backup generators, fuel cells, and/or solar panels. These distributed energy resources are managed via control systems and cutting-edge monitoring systems, and many recent microgrids feature batteries for energy storage.

Typically, microgrids are used by industrial parks, government buildings, military installations, data centers, retail businesses, campuses, and medical facilities to generate and store energy. Since these decentralized power plants can work independently of an existing power grid, they allow organizations to deliver important services even when a centralized power grid is down. With an independent microgrid, organizations can rest easy knowing they’ll still have energy despite the status of their local energy grid.

2. What a Microgrid Isn’t

Unfortunately, there’s often some confusion about what a microgrid actually is. Due to this confusion, it’s important to know what they aren’t to ensure you don’t invest in a system that turns out not to be a microgrid. After all, you probably won’t want to install a system that turns out to not provide continuous power when your main grid is down.
For example, even though microgrids often use solar energy, stand-alone solar and storage systems are not microgrids, as they don’t ensure you have electricity all day and night. During a power outage, a microgrid’s controller can disconnect the microgrid from the main grid to make sure you have power until the outage is over. With just a single solar energy system, there’s no guarantee you’ll have power throughout the entire outage.

Virtual power plants (VPPs) and distributed energy resources management systems (DERMS) are also commonly confused with microgrids. While VPPs can use several distributed energy resources like microgrids, they’re designed to solely provide a main grid with power. Additionally, DERMS are similar to microgrids because they manage distributed energy resources. However, a DERMS refers to a software platform designed to view and manage distributed energy resources, and it won’t provide power during an outage or cut itself off from a main grid.

3. Microgrids Can Feature Bumpless Backup Power

Unlike simple backup power systems, microgrids feature bumpless backup power. With bumpless backup power, your microgrid’s controller can switch from manual mode to automatic mode or vice versa without disrupting your processes. During a bumpless transfer, your controller’s output will stay the same while switching to its automatic or manual mode, preventing process issues and damage to actuators.

4. Microgrids Can Integrate Solar, Wind, Battery, Generator, and Utility Power

One of the major advantages of microgrids is that they can integrate several different distributed energy sources. For instance, a microgrid can draw power from wind turbines, solar panels, diesel-powered generators, batteries, and the main utility power grid. These multiple energy sources allow microgrids to provide power even when one energy source is down.

Typically, basic microgrids will contain a natural gas or diesel generator for energy creation but won’t feature a renewable energy source. In contrast, advanced microgrids usually integrate diesel or natural gas generators with one or more renewable energy sources. Since microgrids can connect to a utility power grid or separate themselves from it, they can also supply your facility with power from your local grid when it’s operational.

5. Microgrids Can Scale With Your Needs

If you’re worried a newly installed microgrid might not meet your future energy demands, you’ll be happy to know that a microgrid can scale with your needs. While you might start with generators and a solar power source, microgrid installers can add new distributed energy resources to your grid to provide more power once you need it.

6. Installing and Maintaining Microgrids Can Be Cost-Effective

People often think microgrids will be too expensive to install and maintain. However, they can be quite cost-effective, as some states offer incentives for organizations that install microgrids, and you can usually find many financing options. Additionally, if you need more load capacity than your existing utility infrastructure can provide, installing a microgrid is often much less expensive than upgrading your utility infrastructure.

Some microgrid companies also offer energy-as-a-service plans that require minimal to no upfront expenses. Instead of owning the grid yourself, the microgrid company will own and charge you per kWh, meaning you’ll still have your backup energy source without the higher costs of owning a microgrid yourself.

While you might think microgrids are only beneficial in emergencies, they could potentially save you money in electricity costs. Since microgrids can be customized to your particular facility, they can maximize your organization’s energy efficiency and keep monthly energy costs lower.