Evaluating Microgrid Technology: 5 Considerations

As energy demands rise and grid reliability becomes a concern, microgrid technology offers a viable solution for businesses seeking energy resilience solutions.

A microgrid is a self-sufficient energy system designed to serve a specific area, such as a campus, business, or community. It typically includes distributed energy resources (DERs) like solar panels, a battery energy storage system (BESS), and a software management system. While often connected to the main power grid, a microgrid can operate independently during outages, making it a reliable energy solution even when the public grid fails.

Unlike diesel generators and other backup power solutions, modern microgrids are intelligent. They use software to manage and balance energy sources based on priorities like minimizing environmental impact or reducing costs. Because of their flexibility, microgrids have become key elements in today’s energy strategies, combining sustainability, reliability, and efficiency in one system.

Key Factors to Consider When Evaluating Microgrid Solutions

Knowing how to weigh your options is important when considering a microgrid for your business or campus. Details such as backup capacity, scalability, and ease of integration with your current energy infrastructure are all crucial concerns.

Here are the most important factors to consider when you’re evaluating microgrid systems:

Scalability and Flexibility

A scalable microgrid solution can grow with your business based on current and future energy needs. In most cases, that means providing incremental increases in the amount of power it provides without significantly increasing its footprint. Self-contained, modular designs can more easily stack as your needs evolve. Scalability also means looking for solutions that provide efficient output with as little waste as possible. 

The flexibility to have the system support your existing power supply while it’s connected to the grid during an outage or provide full load pickup independent from the grid (such as when you want to earn additional revenue through demand response programs) is another major advantage. 

Reliability and Resilience

Facing an aging public grid and increasing weather-related outages, many businesses and municipalities are seeking energy resilience solutions. Perform a microgrid reliability assessment to find a solution that provides uninterrupted, conditioned power during outages, handles transient loads, and maintains power quality.

Efficiency and Cost Savings

Power efficiency and savings are obvious and important factors when you’re choosing a microgrid solution. Microgrid cost savings start with improving your power factor—the ratio of real power to apparent power—and boosting overall efficiency. Calculate your potential return on investment for your chosen solution based on how much it will save on energy costs over time.

Integration with Existing Infrastructure

Adopting a microgrid solution shouldn’t mean replacing every component in your current energy system. You should be able to connect it to any power source, such as your public utility, a diesel generator or natural gas generator, and incorporate renewable energy sources, such as solar power and wind, without major redesigns. A system that’s easy to implement and causes minimal disruption during installation and commissioning will save time and costs, and encourage ready adoption.

Environmental Impact and Compliance

As many countries and companies seek to reduce carbon emissions to slow the effects of climate change, adopting a microgrid can help you achieve your sustainability goals. Many microgrid solutions can incorporate on-site distributed energy resources such as wind turbines and solar panels, making renewable energy more reliable. When choosing a microgrid, consider how it can help you achieve your sustainability goals and comply with local and national environmental regulations. When you invest in a microgrid, there’s also the potential for significant tax incentives (up to a 40% credit) under the U.S. Inflation Reduction Act (IRA) through the Investment Tax Credit (ITC).

The R3Di® System: A Next-Generation Microgrid Solution

The R3Di® System is a compact, self-contained on-site power platform that combines a prime-rated, rich-burn natural gas generator with a high-performance lithium iron phosphate (LiFePO₄) battery energy storage system to deliver 1 MW or more of reliable, conditioned power. Designed for rapid deployment, the R3Di® System requires no interconnection agreement or utility modifications, making it ideal for critical operations. Its patented architecture features a dual inverter design and continuous double conversion system to absorb transient loads and provide seamless, uninterruptible power transfer—even during long-duration outages.

Some of R3Di®’s key features include:

• Double conversion inverter for continuous power conditioning
• Dual inverter design handles transient and high-inrush loads
• LiFePO₄ batteries for fast discharge, safety, and energy density
• Up to 99% power factor to reduce peak demand charges
• Instantaneous full-load pickup and extended outage support
• Plug-and-play deployment with minimal infrastructure changes

How the R3Di® System Excels in Key Evaluation Areas

When evaluating microgrid systems, R3Di® stands out in the same essential areas we considered earlier. Let’s take a look at how it performs in each category:

Scalability and Flexibility

Designed to meet diverse energy requirements, the R3Di® System scales up and down easily, making it suitable for many industries such as oil and gas, data centers, and manufacturing. It integrates seamlessly with existing energy components and renewable distributed energy resources, such as solar panels, strengthening your sustainability efforts.

Reliability and Resilience

The R3Di® provides a synthetic utility BUS (a central point where different power sources or loads are connected) with inertia for continuous on-site power and seamless resiliency, independent of grid conditions. Our AI-optimized energy management system (Grove365) effectively manages transient loads, ensuring stable operations for businesses with volatile energy demands.

Efficiency and Cost Savings

The R3Di® ensures a high power factor of up to 99%, reducing energy waste and lowering utility bills. The system also decreases peak demand charges by leveling load factors. This “peak shaving” yields significant energy cost savings over time and supports grid stability.

Integration with Existing Infrastructure

Designed for easy deployment with minimal disruption, the R3Di® is compatible with existing energy systems. It’s a turnkey solution that simplifies your transition to a more resilient energy structure.

Environmental Impact and Compliance

With its clean natural gas generators, the R3Di® significantly reduces carbon emissions compared to traditional diesel generators, helping businesses support environmental sustainability goals, meet regulatory requirements, and qualify for tax incentives.

Real-World Applications of the R3Di® System

Here are a few examples of how this turnkey microgrid solution serves organizations across industries.

Erie County's Rath Building
The Erie County Department of Public Works needed to increase power reliability at its 16-story Edward A. Rath County Office Building in western New York. The R3Di® System was installed with a rooftop solar array, enhancing energy resilience and flexibility during emergency grid conditions. Grid optimization software and services from e2Companies (Grove365) make R3Di® a full-service virtual utility, delivering full visibility and control to Erie County’s teams.

Oil Creek Plastics
An industry leader in the piping and tubing market since 1972, Oil Creek Plastics was experiencing disruptions in the power supply at its manufacturing facility, impacting production and causing downtime and loss of material costs each month. The company adopted the R3Di® System to provide 2,000 kW (2MW) of uninterruptible, conditioned power for the building. In addition to connecting to the electric grid and a natural gas generator, R3Di® stores energy from the facility’s 1000 kW rooftop photovoltaic panels (PV).

Making an Informed Decision in Microgrid Technology

Selecting the right microgrid technology requires careful evaluation of many factors—scalability, reliability, efficiency, integration capabilities, and environmental impact.

The R3Di® System stands out as a comprehensive, all-in-one solution that addresses these critical considerations. Its design combines a prime-rated, natural gas generator with a high-performance energy storage system and advanced power conditioning technology. With a turnkey solution, businesses can achieve enhanced energy resilience, reliable power during outages, and cost savings through reduced peak demand charges. And with quick deployment, minimal infrastructure requirements, and the ability to integrate with existing systems, it provides a future-proof solution for industries across sectors.

To see how the R3Di® System compares to other microgrid solutions and to determine the best fit for your organization's energy needs, visit our detailed comparison page.