(1).a - You are asked to provide a storage solution to a restaurant that pays heavy Demand Charges. You propose a Behind the Meter solution to the business owner, who has a peak load of 200 kW and pays electricity tariff of $0.12/kWh and Demand Charges of $5/kW-month from 0 to 100kW and $20/kW-month for loads above 100kW. You further understand that the restaurant opens at 4pm, stays fully occupied from 5pm to 10pm (i.e., peak load hours), when all electrical equipment are turned on. The load drops down significantly (below 100kW) during non-peak hours. Assuming all-in battery storage system prices of $500/kWh, what would be your recommendation to the Owner for an energy storage solution? What capacity (i.e., kW size) and duration (i.e., hours of storage) would you propose assuming a 5-year payback? Show detailed analysis and conclusion based only on the given information (i.e, ignore degradation, any tax credits etc).

(1).b - How would your analysis change if you figured out a way for the Owner to claim 30% ITC on the storage cost, which has dropped to $350/kWh and the Owner accepts a 6-year payback.