Powering Profitability: Unleashing the Potential of Battery Storage in Commercial Settings
February 19, 2024

In today’s dynamic business environment, staying competitive demands innovative solutions that drive efficiency, resilience, and sustainability. Battery storage technology in commercial settings presents a compelling opportunity to achieve these objectives while delivering tangible cost savings and environmental benefits. Let’s delve into the business case for batteries in commercial settings.

Demand Charge Reduction

Demand charges are calculated by the highest amount of energy used during a given period of time and often constitute a significant portion of commercial electricity bills. According to industry data, demand charges can account for up to 50% of a commercial customer’s electricity costs. By deploying battery storage systems to manage peak demand effectively, businesses can significantly reduce these charges. Case studies have shown that businesses can achieve demand charge reductions ranging from 20% to 50% by leveraging battery storage technology.

Commercial Time-of-Use (TOU) Optimisation

Battery storage systems enable businesses to capitalise on time-of-use (TOU) electricity pricing schemes. By storing energy during off-peak periods and discharging it during peak demand times, businesses can achieve substantial cost savings. For example, data analysis has revealed that businesses utilising battery storage to shift their energy consumption patterns to align with TOU pricing schedules can achieve annual savings of $10,000 to $50,000+, depending on their electricity usage profile and local utility rates.

Backup Power and Resilience

The cost of downtime due to power outages can be significant for businesses, with estimates ranging from $100 to $1,000 per minute, depending on the industry. Battery storage systems in commercial settings provide a reliable backup power solution, ensuring uninterrupted operations during grid outages or emergencies. Case studies have demonstrated that businesses equipped with battery storage can reduce downtime-related costs by up to 80%, translating to savings of tens of thousands of dollars per year.

Renewable Energy Integration for Commercial Entities

Battery storage plays a crucial role in maximising the value of renewable energy sources, such as solar power. By combining solar PV systems with battery storage, businesses can optimise self-consumption of solar energy and reduce reliance on grid-supplied electricity. For instance, data from solar and battery installations shows that businesses can achieve self-consumption rates of 70% to 90%, resulting in annual electricity bill savings of $20,000 to $100,000+, depending on system size and solar resource availability.

In summary there could be a strong business case for battery storage in commercial settings. From demand charge reductions and TOU optimisation to backup power resilience and renewable energy integration, battery storage offers a clear path to cost savings, operational efficiency, and environmental sustainability for businesses. With the potential for significant returns on investment and a rapid decline in battery storage costs, now is the time to explore how you might be able to benefit from the improved battery storage technology and reduced battery prices.

Find a funding solution fit for your business and your renewable energy goals here.


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