Microgrid FAQs
Energy Costs Are Rising. Grid Failures Are Increasing. What’s Your Plan?
Everything You Need to Know About Microgrids & Energy Independence
At Faraday Microgrids, we help hospitals, industrial, and commercial facilities take control of their energy. Our microgrids cut costs, mitigate power outages, and support sustainability.
If you’re wondering how a microgrid works, what it costs, and whether it’s right for your facility, you’re in the right place.
Explore the most frequently asked questions below, or schedule a consultation to get expert advice.
What is a Microgrid and How Does It Work?
A microgrid is an independent energy system that generates, stores, and manages electricity for your facility, at your facility. It can operate with or without the electric utility grid, providing reliable, cost-effective power.
- Normal Conditions – Uses on-site power sources (solar, fuel cells, linear generator, and batteries) to reduce utility costs.
- During a Power Outage – Instantly disconnects from the grid (“islands”) and supplies power from stored energy to maintain operations.
- When the Grid Returns – Seamlessly reconnects, ensuring no operational downtime.
- Solar only systems generate energy but only while the sun is shining. They are incapable of storing and managing power for backup use.
- Backup generators are strictly limited on the hours they operate each year and intended for back up power only. They also require frequent testing and maintenance to ensure preparedness for back up scenarios..
- A microgrid integrates clean power generation, energy storage, and intelligent controls to continuous power, lower energy costs, and grid independence.
Want to learn more? Download our Microgrid 101 Guide.
Microgrid Benefits – Why Should Your Facility Invest in One?
Microgrids can cut energy costs up to 80% by:
- Using stored solar energy during peak hours to combat demand charges
- Cutting baseline energy usage with clean generation from fuel cells and linear generators
- All resulting in reduced reliance on expensive utility power
See what a microgrid can save your facility. Schedule a free energy assessment.
This is a complex question as many factors determine the resiliency capabilty of microgrids: the primary being the customer’s needs. Taking into consideration the available space at the facility, the system (solar, battery, and fuel cell/linear generator) can be sized to make your facility fully independent of the electric utility. In other words, our systems can be designed to provide continuous power to the point of making the electric utility the back up resource.
Facilities may qualify for:
- Federal Tax Credits – Between 30-50% Investment Tax Credit through the Inflation Reduction Act (IRA 2022). Non-profits and government entities are eligible to receive these tax credits in the form of a rebate.
- State & Utility Incentives – Grants, rebates, and demand response programs vary by State and availability. We always look to maximize the savings for our customers with all available/applicable incentives.
- Financing Options – Projects can be wholly or partially financed with power purchase agreements and leases..
See what incentives are available for your facility. Schedule a free energy assessment.
Microgrid Installation & Project Timeline
Many factors can impact the duration of a microgrid project, the primary being: 1) current equipment lead times, 2) facility and operational complexity, and 3) permitting and utility interconnection. In general, microgrid projects take between 12-24 months from design kick-off to commercial operation.
While microgrids can be designed to make a facility fully independent from the utility, any system on a facility that will maintain a connection to the utility will require interconnection approval. This process is entirely managed by Faraday. Our expertise results in efficient and timely approvals needed from your electric utility.
Faraday Microgrids makes energy independence simple with a three-step, turnkey process:
- Assess Your Facility’s Needs – We conduct an energy analysis and your operational goals to provide a system concept and financial model.
- Design, Permitting, and Interconnection– We fully design the microgrid and manage all permitting and interconnection approvals.
- Procurement and Installation – We manage the purchasing of all equipment, installation, and commissioning of your microgrid to deliver a system meeting your operational goals.
Start your journey to energy independence. Schedule a consultation today.
Why Choose Faraday Microgrids?
Faraday Microgrids is an industry leader in turnkey microgrid solutions:
- First Automatically Islandable Hospital Microgrid – Providing uninterrupted backup power for emergency power.
- Changes to National Code – Our success has led to changes to the National Electric Code (NEC) providing the opportunity for renewable microgrids to replace diesel generators as back up power for critical facilities.
- Multi Resource Microgrids – Combining multiple resources, including solar, battery, and fuel cells/linear generators, has proven to be an incredibly successful formula.
Controls Expertise – The control structure of a microgrid is one of the most critical and difficult components. Our expertise in this area ensures that our microgrids integrate seamlessly and operate to the expectations of our customers.
We work with facilities in a range of commercial and industrial industries. Some of these include hospitals/healthcare, food processing, data centers, cold storage, manufacturing, R&D, and universities. If your business relies on continuous power, a microgrid could be the best solution for you.
Take the Next Step Toward Energy Independence
A microgrid isn’t just a backup plan—it’s a smarter way to manage your energy costs.
