Energy efficiency isn’t just about going green anymore. While it’s incredibly important for facilities to reduce energy costs as much as possible, it has become standard practice to try to reduce energy consumption, whether for environmental or financial reasons. Nowadays, facility managers and energy teams are looking into maximizing returns on their infrastructure. One emerging strategy? Monetizing excess energy using an Energy Management Software, or EMS.
As more facilities adopt Distributed Energy Resources, or DERs, such as batteries and solar panels, many of them can often generate more electricity than they need during certain periods. This surplus of energy usually goes unused, and facilities are often sitting on the potential for another revenue stream. With the help of an EMS, especially one that is vertically integrated, facilities can easily transform excess energy into an active source of revenue.
What Is an EMS?
An EMS is a software that can control DERs to ensure they are monitored and operated most efficiently. An EMS provides the benefit of consolidating all DERs in a facility onto one platform for control and monitoring. It optimizes and minimizes energy use on a site by enabling real-time information about the assets on site
Turning Surplus into Revenue: How It Works
A traditional EMS focuses on optimizing Distributed Energy Resources, including Battery Energy Storage Systems (BESS), HVAC systems, generators, and solar panels. While it is not directly connected to energy markets, traditional EMS can still participate in programs that allow it to monetize its excess energy. By utilizing real-time and historical data, an EMS can help facility managers identify patterns, shift loads, and enhance energy efficiency, resulting in cost savings and financial benefits.
1. Demand Response with Export
In some advanced demand response programs—like PJM’s Economic Demand Response or CAISO’s Proxy Demand Resource—facilities are not just rewarded for reducing consumption, but also for exporting energy back to the grid during peak demand. Facilities with DERs like solar or BESS can dispatch excess energy to the grid when it’s under stress.
2. Energy Arbitrage
A facility equipped with a Battery Energy Storage System (BESS) can store energy when prices are low and sell or use it when prices are high—a process known as energy arbitrage. Some advanced EMS can analyze market conditions and forecast price trends to determine the most profitable times to charge or discharge.
3. Wholesale Market Participation
In a deregulated market where electricity is bought and sold independently between generators, facilities can bid an excess of energy into the wholesale electricity market. Utilizing EMS platforms that are integrated with market operators enables the automation of bid submissions and the optimization of participation strategies.
4. Virtual Power Plant (VPP) Integration
By pooling excess energy from DERs, facilities can aggregate this energy into a Virtual Power Plant, where they can generate revenue by selling it back to the grid. An EMS manages the operation of these resources to make sure that they run efficiently and up to the technical and regulatory standards set by the VPP provider.
5. Net Metering
Net metering is a popular program in the US and Canada that allows facilities with solar or other DERs to export excess energy back to the grid in exchange for credits. In the US, this is called Net Energy Metering (NEM) and is available in many states, but rates and policies vary. For example, California’s NEM 3.0 has recently moved to reduced credit values and time-of-use structures to encourage better energy management.
In Canada, provinces like Ontario, Alberta, and British Columbia have net metering programs that allow facilities to send excess solar or wind energy to the grid and get credits on their utility bills. But these programs are credit-based, not cash-based and subject to provincial regulations that determine eligibility and payout structures.
Net metering doesn’t give you direct cash flow but it reduces operating expenses through bill credits and avoided costs – essentially turning energy savings into profit.
6. Alberta – Energy Export through Retailers
In Alberta, micro-generators with systems up to 5 MW (like commercial solar) can export excess energy back to the grid and get paid by energy retailers. Unlike traditional net metering, this setup allows facilities to earn credits based on the hourly wholesale pool price, so a more dynamic revenue potential that reflects real-time market conditions.
This program lets facilities get paid for exports, especially during peak demand when prices are high. Revenue is earned by selling the exported energy and credited back to the facility through their retail energy provider, a more market-based approach than traditional credit-based models.
Why Vertical EMS Is a Game-Changer
Unlike traditional EMS platforms that focus mainly on monitoring and efficiency, a vertically integrated EMS takes it a step further to not only track and optimize energy usage but also connects directly to energy markets. This means it can automate actions like bidding into wholesale markets, participating in demand response events, and managing energy arbitrage strategies in real time. The result? You can unlock new revenue streams from your existing DERs with minimal manual effort and improve energy resilience and ROI.
Getting Started with EMS
If you already have solar panels, batteries, or smart meters, you’re on your way to new revenue streams. Implementing the right EMS that can integrate with your existing infrastructure is key. NeuraCharge™ is a vertically integrated EMS that helps you with all of that, from intelligent battery management and charge/discharge cycle optimisation to energy price forecasting and market participation automation. It analyses real-time energy data, predicts grid demand, and dispatches energy at the most profitable times, so you get the maximum return on investment without any manual intervention.
Want to turn excess energy into a revenue stream? Contact us today to find out more and book a demo.
