Microgrid Solutions for Reliable Electricity
A microgrid is a localized grid that can disconnect from the traditional grid to operate autonomously. Microgrids are becoming increasingly important because they enable critical loads, facilities, or even entire communities to continue operating when the surrounding electrical grid becomes unavailable.
UNDERSTANDING MICROGRIDS
TPI Microgrid solutions include solar systems, batteries, combined heat and power(CHP), and even fuel cell platforms that can be configured to protect against power grid outages, fluctuations, and extreme weather disruptions. Facilities operating clean and hybrid energy microgrids can overcome previous power quality issues that they had no solution for otherwise, and are no longer reliant on the utility and grid infrastructure.
Our microgrid energy technology generates highly efficient, reliable, and clean energy that is also fuel-flexible and future-proof, helping you navigate the energy transition to achieve your decarbonization goals. The microgrid platforms enable your organization to hedge against electricity price volatility and escalation by fixing a large portion of your electricity costs. Systems can be modular, allowing for scalable growth as your business and its power demands increase.
WHY ARE MICROGRIDS IMPORTANT
We live in a society where 24/7 electricity is a basic necessity – powering everything from our homes to our businesses and transportation systems – yet most still rely on an aging and unreliable electrical transmission and distribution system.
According to the Eaton Blackout Tracker, 36 million people experienced an outage in 2017, with an average duration of 81 minutes, nearly double the average of 48 minutes in 2016. 2019 was a particularly significant year for microgrids, as California utilities began implementing Public Safety Power Shutoffs (PSPS) and cut power to millions of people for up to a week.
WHAT ARE MICROGRIDS?
Microgrid Basics
A microgrid comprises local power generation resources, such as solar panels, battery storage, CHP, fuel cells, etc, and serves one or more buildings or a defined area requiring power. Control systems manage the interaction between generation, storage, and consumption, allowing for seamless transition between grid-connected and local operation.
Key Features
Common Applications
Microgrids deliver flexible solutions for energy resilience, sustainability, and reliability across a spectrum of community, institutional, and commercial/industrial needs.
Uninterrupted power without compromise to eliminate power outages, voltage fluctuations, and brownouts
Reduce price uncertainty from energy costs with superior power quality
Accelerating the path to decarbonization and better air quality
A turnkey solution platform to enhance your distributed energy resources investment strategy
OWN YOUR MICROGRID
Energy Resilience and Reliability: Microgrids keep business operations running during grid outages, protecting revenue and reputation when competitors may be forced offline
A well-designed microgrid safeguards business continuity, reduces operational risks, strengthens a sustainability posture, and generates both near-term and long-term financial benefits for forward-thinking companies.
WHAT INDUSTRIES BENEFIT THE MOST FROM MICROGRIDS
Microgrids are expanding across various sectors, particularly where energy is mission-critical or when sustainability and resilience goals are prioritized. However, healthcare, education, commercial and industrial (C&I), and data centers stand out as the industries with the highest current and projected benefits from microgrid adoption.
Many large manufacturing and commercial sites in the U.S. have successfully installed microgrids to boost energy resilience, lower costs, and achieve sustainability goals.
This plant implemented a microgrid in 2017 that combines solar panels, a natural gas generator, and onsite battery storage. The system maintains production continuity during grid outages, reduces energy costs through load management, and significantly reduces the facility’s carbon footprint.
This architectural door manufacturing company installed a microgrid with advanced controls to optimize multiple uses. This enables the facility to save on energy bills by exploiting local tariffs and time-of-use rates while maintaining reliable operations.
During major weather-related outages, Home Depot locations with Bloom Energy’s natural gas fuel cell microgrids stayed open, providing a competitive advantage by maintaining uninterrupted operations and service when competitors had to close.
Utilized a microgrid to manage demand charges and time-of-use rates, yielding substantial ongoing savings while improving operational resilience against power disruptions.
The University of California, San Diego, operates one of the world’s largest microgrids, powering 85% of the campus’s needs through a mix of solar, fuel cells, and cogeneration. It serves as a model for other corporate and institutional campuses seeking both resilience and sustainability.
Harborside installed a microgrid comprising 4.9 MW of solar and 6 MWh of battery storage to fully power its 47-acre cannabis production site, aiming to offset 100% of energy demand with solar and thus improve sustainability and profitability.
A transmission company piloted advanced storage-based microgrids to test approaches for future utility-scale resilience—benefiting large customers and providing insight for further commercial adoption.
These examples underline how microgrids are significantly transforming energy reliability, cost management, and environmental performance for large-scale U.S. industrial and commercial users.
FUNDING MICROGRIDS
Energy Services Contract/PPA
For our typical client seeking an immediate bottom-line impact, we offer Power Purchase Agreements (PPAs) or Power as a Service contracts to deliver low and predictable energy costs, without any upfront capital investment. We work closely with each customer to determine the best financing structure and terms that meet their specific needs. We typically find a 1-3 cent per kWh reduction with no out-of-pocket expenses.
Capital Purchase
Customers who want to maximize their return on investment can purchase and install our microgrid systems at their facilities. This allows customers to capture all of the economic benefits of producing their own power for significantly less than the price of electricity purchased from the grid. Purchasing the system outright yields the maximum return for a 25-year product life.
Investing in a microgrid offers companies substantial benefits, including enhanced resilience, cost savings, sustainability, flexibility, and even new revenue opportunities.
PAYBACK
Upfront Incentives:
Federal investment tax credits, state clean energy rebates, and grants.
Renewable and Alternative Energy Credits:
Leverage them toward your ESG and Sustainability goals, or sell them on the Energy Credit market.
Electricity Prices:
Higher local rates accelerate payback, as do rising grid prices.
Energy Mix:
Systems combining solar, fuel cells, storage, and demand management optimize both savings and revenue.
ROI ON MICROGRIDS
The payback period for a commercial microgrid typically ranges from 5 to 10 years, with most projects falling within the 7–10 year range, depending on the technology mix.
Local energy costs, incentives, and the use of solar, batteries, combined heat and power, and fuel cells.
Return on investment (ROI) for these systems can reach 10%–20% per year, and in some standout cases, up to 45% with IRRs over 30% for highly optimized projects or those receiving substantial incentives.
Additional Revenue Streams: Participation in demand response or ancillary services further increases ROI.
Microgrid investments typically deliver strong, reliable returns, with system lifetimes extending well beyond the payback period, thereby providing years of cheaper, resilient electricity and protection against both outages and energy price volatility.
EXAMPLE PROJECT
Large Commercial/Industrial:
For projects exceeding 500 kW, payback periods can range from 5 to 10 years, particularly when grid rates are low or upfront incentives are limited.
In Pennsylvania: Projects in states like Pennsylvania, with strong incentives and higher local rates, report paybacks as short as 4–8 years.
High Electricity Total cost per kWh: When your electricity costs are above a total cost of $0.11/kWh, then there is an opportunity to save today
TPI consultants will review your spend and give you options to optimize your facilities’ energy consumption.
Renewable Energy Certificates (RECs) contribute to reducing carbon emissions
With lower costs and government incentives for renewable electricity generation, solar and wind generation is increasing across the globe.
TPI Efficiency offers a comprehensive range of electrical solutions for various commercial and industrial needs.
Is your building ready for electric vehicles? Let us develop and install your EV charging solutions
Our experts will look at energy and usage rates as part of our risk-free audit. And we will advise of local, state, and federal incentives along with assessing your rooftop and solar field options.
At TPI Efficiency, we provide the strategic blueprint and expertise to help you meet your sustainability goals, comply with regulations, and exceed stakeholder expectations worldwide. Our team includes HVAC engineers, building surveyors, renewable energy specialists, and other subject matter experts dedicated to your success.