Question 1

How does the Commercial Solar + Battery Peak Demand Shaving Sizer calculate financial return and payback?

Accepted Answer

The solver models gross capital expenditure (CapEx), Section 48 Investment Tax Credits (ITC 30%–50%), 5-year MACRS accelerated depreciation, utility demand charge shaving, and levelized cost of energy (LCOE).

Question 2

Does this calculator account for battery degradation over time?

Accepted Answer

Yes, it models standardized degradation curves (typically 1.5% to 2.2% annually for LiFePO4 cells) and accounts for battery pack augmentation cycles across a 20-to-25 year lifecycle.

Question 3

What federal tax credits apply under the Inflation Reduction Act?

Accepted Answer

Under Section 48 and Section 45Y, qualifying clean energy and battery storage installations unlock a 30% base ITC, plus potential 10% domestic content and 10% energy community bonus adders.

Commercial BESS Peak Demand Shaving Sizer

Utility Demand & Facility Load Profile

BESS Sizing & Annual Utility Savings