The changing of the seasons and approaching cold weather creates a perfect time to discuss a new way to use ice storage for the electrification of heat. And the timing is also very relevant, as US building owners can now take an investment tax credit for thermal energy storage systems!
Using thermal energy storage (TES) to shift cooling demand from on-peak to off-peak hours has been successfully implemented on thousands of projects over many decades. Thermal energy storage tanks are designed to last longer than chillers and current building automation systems help simplify operation for facility managers. A great review of common practices for applying thermal storage for cooling is provided in the Trane Ice Storage Systems Air Conditioning Clinic1 .
One past Engineers Newsletter on thermal energy storage for cooling (ADM-PN025-EN, September 2007) explains how it can impact high-performance building design. Using TES to shift cooling demand from on-peak to off-peak hours can help support customers’ cost, energy, and emissions goals. The lowest first-cost and smallest equipment size uses partial storage. Providing thermal energy storage greater than the minimum was shown to reduce energy costs. To simplify design and reduce time, equipment ratings for various size air-cooled chiller models/capacities is/are coupled with thermal energy storage capacity, piping, and pump sizes. Please refer to the Trane® Thermal Battery™ system catalog2 for more information.
Covered in the upcoming Engineers Newsletter Live session, “ Electrification of Cooling and Heating with Thermal Energy Storage3“, this new use for thermal storage in heating, provides for the electrification of heat in a building and helps eliminate site fossil fuel emissions. Contact your local office for an in-person event in your area or register for our virtual option on January 11, 2023
A system completion module is also available to simplify design, as well as help reduce installation and commissioning time and risk, with several standard features and add-on options to simplify the design, installation, and commissioning.
There is an estimated $216 billion in tax incentives for corporations to catalyze private investment in clean energy, transport and manufacturing4. Projects with thermal energy storage can receive a six to fifty percent investment tax credit for the thermal energy storage system property being installed. In addition, tax-exempt entities can now take direct payment for the tax incentive. There were also several key changes to the 179D Energy Efficient Commercial Buildings Tax Deduction in the Inflation Reduction Act.
Thermal energy storage has been key in helping the environment for a long time, by reducing building peak demand and utilizing cleaner, off-peak energy. And now, the stimuli are in place for even more energy flexibility and decarbonization for the future of commercial buildings.
1. Ice Storage Systems Air Conditioning Clinic (TRG-TRC019-EN)
2. Trane Thermal Battery™ Air-Cooled Chiller Plant system catalog (APP-PRC001*-EN)
3. Trane Engineers Newsletter Live program "Electrification of Cooling and Heating with Thermal Energy Storage" (launching in November, APP-CMC083-EN)
4. https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-inflation-reduction-act-heres-whats-in-it
“Trane does not provide tax, legal, or accounting advice. This material is for informational purposes only and it should not be relied on for tax, legal, or accounting advice. Tax law is subject to continual change. All decisions are your responsibility, and you should consult your own tax, legal, and accounting advisors. Trane disclaims any responsibility for actions taken on the material presented.”
