Onsite Solar and Storage Shield Businesses from Grid Volatility and Rising Costs
Commercial and industrial companies are increasingly adopting onsite solar and battery storage systems to shield themselves from rising utility rates and volatile natural gas prices. Mary Beth Mandanas, CEO of Onyx Renewables, explains that these solutions provide a physical hedge against gas price swings and offer long-term cost certainty. Unlike grid-supplied power, which is influenced by natural gas volatility, onsite solar systems offer fixed pricing for electricity over 20-to-25-year terms, effectively acting as a fixed-to-floating energy swap.
The shift from grid reliance to onsite generation helps businesses reduce peak demand and shift power usage to cheaper time-of-use periods, leading to significant savings. Mandanas highlights that while fixed-price contracts for gas-powered generation exist, they do not provide the same direct physical energy hedge as onsite solutions. Additionally, onsite solar paired with energy storage allows businesses to respond more quickly to their power needs, bypassing the lengthy interconnection queues associated with traditional grid upgrades.
One of the primary obstacles businesses face when deploying onsite clean power is the complexity and capital required. However, companies like Onyx Renewables handle project development and provide the necessary capital, maintaining ownership of the system while selling power back to the customer at a lower cost than utility prices. This model simplifies the process for businesses looking to control their energy costs and improve operational resilience.
Looking ahead, Mandanas anticipates that onsite, decentralized power will grow faster than central grid updates. S&P Global projects that by 2030, onsite generation will meet about a quarter of new data center demand. This trend is expected to extend to commercial and industrial customers, who are increasingly prioritizing cleaner, more predictable energy options. Onsite solar and storage solutions are becoming the faster, more immediate answer for businesses seeking to manage rising utility rates and grid constraints.