What if your business could slash energy bills by 25% while staying powered during outages? In today’s world, energy management is a game-changer for small and medium-sized enterprises (SMEs) like yours—think factories, warehouses, or offices. Rising electricity costs, unpredictable outages, and pressure to go green are pushing businesses to explore commercial battery storage systems. If you’re a business owner or decision-maker new to this tech, this guide is for you. We’ll break down what these systems are, how they work, their benefits, and real-world uses—all in plain language. By the end, you’ll have a clearer picture of how a commercial battery storage system can save your business money, improve energy reliability, and support your sustainability goals.
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A commercial battery storage system is a technology that allows businesses to store electricity for later use. These systems help manage energy consumption by storing power during low-demand periods and using it during peak hours when electricity costs are higher or during grid outages. The main components of a commercial battery storage system include batteries, inverters, and energy management systems (EMS).
The most common type of battery used in these systems is the lithium-ion battery. These batteries are efficient, long-lasting, and compact, making them perfect for commercial use. Think of it as a rechargeable battery for your business, storing energy when it's abundant and cheap (like during the day when solar power is being generated) and using it when you need it most.
The biggest draw for businesses is the cost savings that come with a commercial battery storage system. Energy costs can be unpredictable, with high prices during peak hours and lower prices when demand is low. By installing a battery storage system, your business can store energy during off-peak hours when rates are cheaper and use it during peak hours when electricity is most expensive.
For example, a small manufacturing business might be paying more for energy during the afternoon when demand is high. With a battery storage system, your shop or factory can store power at night (e.g., $0.05/kWh) and use it when rates hit $0.20/kWh. According to NPEL, A 500 kWh system could save a manufacturer $10,000 yearly—up to 25% off bills, per industry data.
Another major benefit of commercial battery storage is the reliability it offers. Unplanned power outages can disrupt business operations, leading to costly downtime. A 1-hour outage might spoil $5,000 in inventory for a food distributor.
A battery storage system can act as a backup power source, ensuring that your business continues to run smoothly even when the grid goes down. For instance, a warehouse might rely on battery storage to maintain power for its critical systems, such as refrigeration units, during an outage. This reliability can be crucial to maintaining business continuity and protecting your assets.
Commercial battery storage systems also support sustainability efforts. More businesses are looking to reduce their carbon footprints by integrating renewable energy sources such as solar panels or wind turbines into their energy mix. When paired with renewable energy, battery storage systems allow businesses to store the clean energy they generate during the day and use it when the sun isn't shining or the wind isn't blowing.
For example, a business with solar panels on its roof can store excess solar energy in batteries during the day and use it at night. This not only reduces reliance on fossil-fuel-based electricity but also supports your sustainability goals and can improve your brand’s reputation as an eco-conscious company.
There are several different types of commercial battery storage systems, each with its own set of advantages and considerations. The best choice for your business will depend on your energy needs, budget, and sustainability goals.
Lithium-ion batteries are the most popular choice for commercial battery storage systems. These batteries offer a high energy density, long lifespan (typically 5,000+ charge cycles), and fast charge/discharge capabilities. They are compact and can easily fit into commercial spaces, making them an ideal choice for businesses that need reliable power storage under 20 MWh.
Lead-acid batteries have been around for a long time and are often used for backup power. They have a lower upfront cost compared to lithium-ion batteries but are less efficient and have a shorter lifespan (about 1,000 to 1,500 cycles).
Flow batteries are a newer technology that is suitable for long-duration energy storage. Unlike lithium-ion batteries, flow batteries store energy in electrolyte solutions, which allows for longer storage times and the ability to scale up capacity. However, flow batteries tend to be bulkier and more expensive, making them less suitable for small-scale commercial applications.
Sodium-ion batteries are an emerging alternative to lithium-ion. They are environmentally friendly and cost-effective but are still in the developmental phase for widespread commercial use. As technology improves, sodium-ion batteries may become a more popular choice for businesses looking for a more sustainable solution.
Commercial battery storage systems can be used in a variety of settings across different industries. Here are some common use cases for these systems:
Battery storage can help retail stores and offices reduce energy costs by storing energy during low-demand times and using it during peak periods. It also provides backup power in case of outages, keeping essential services like lighting and refrigeration running smoothly.
Manufacturers often have high energy demands, particularly during production hours. Battery storage systems allow them to store energy when rates are low and use it to power machinery and other equipment during peak demand periods. This not only saves money but helps avoid penalties associated with high energy consumption.
Warehouses and distribution centers often operate around the clock and rely on consistent power to keep operations running smoothly. Battery storage ensures they can maintain power during outages, especially for critical equipment like refrigeration units.
Data centers require 24/7 uptime, making battery storage systems an excellent solution for providing backup power during outages. They also help improve energy efficiency by storing excess power during non-peak hours.
For businesses with solar panels or wind turbines, battery storage systems allow them to store excess renewable energy for use during low generation periods. This helps reduce reliance on the grid and supports overall sustainability goals.
When selecting a commercial battery storage system for your business, there are several factors to consider:
Capacity and Scalability: Make sure the system can handle your current energy needs, and look for one that can be scaled up as your business grows.
Efficiency: Choose a system with high charge/discharge rates (e.g., lithium-ion systems often reach 90%+ efficiency).
Lifespan: Look for longer-lasting solutions like lithium-ion batteries, which can last over 10 years.
Cost: While the initial cost might be high, the long-term savings and potential incentives make it a valuable investment.
Maintenance: Lithium-ion systems require minimal maintenance, which is ideal for businesses that want a hassle-free solution.
Unsure what fits? We offer free assessments to nail it down for your SME.
While commercial battery storage offers many benefits, there are some challenges to consider:
Battery storage is on the rise for SMEs. Lithium costs have dropped 20% since , and by , tax credits and falling prices will fuel adoption. SMEs will lean on systems like ours—under 20 MWh—to manage volatile energy markets and green mandates (e.g., China’s carbon goal). Innovations in efficiency and safety are coming, and we’re pushing the curve to keep your business ahead. The future? Affordable, reliable power for every SME.
Commercial battery storage isn’t just for big players—it’s your SME’s edge. Slash energy costs, stay powered through outages, and go green with a system tailored to your needs. Our lithium-ion C&I ESS solutions deliver these wins daily for businesses like yours.
Ready to take control of your energy? Contact us for a free energy audit today and see how a commercial battery storage system can benefit your business today.
Home solar panels are providing clean energy to more homeowners than ever before and lowering energy bills in the process. More and more people who go solar are also installing a battery, which can provide some backup power during an outage and, in some cases, boost your solar savings.
If you’re looking to add a battery to your home (with or without solar panels) here’s what you need to know about how a home battery works, what it can do, and whether it’s a good fit for your home.
Home battery storage systems are large, stationary batteries that store energy for later use or during a blackout. While the Tesla Powerwall is the most widely known and installed home battery, the playing field is getting more crowded.
Home batteries can charge using grid power or solar power to use when the sun or the grid goes down.
Today’s batteries often come with energy management algorithms that let you set different priorities for your battery and solar system. Whether you want to use and store as much solar power as possible before sending it back to the grid, avoid buying electricity at the most expensive times, or just keep your battery charged up in case of a blackout, modern batteries can do that.
Battery systems require a few additional components, like an inverter (which converts the battery’s direct current electricity to the alternating current your house and the grid uses), mounting hardware, and additional wiring. Most battery manufacturers also have an app for managing your battery’s charge level and settings.
Batteries configured to back up your home in case of a power outage will have additional equipment and wiring that lets the battery isolate your home from the grid and send power to select circuits. Batteries without backup capabilities require less hardware and labor, making them less expensive projects overall.
If you want to learn more, please visit our website Battery Energy Storage Solution.
The most common type of battery uses lithium-ion chemistry, like bigger versions of the batteries that power your or laptop. As battery technology matures, more flavors of the lithium-ion battery are popping up and entirely new battery chemistries could be on the horizon. Lithium iron phosphate batteries are a newer chemistry that is a bit safer, longer lasting, and better at high and low temperatures than some earlier lithium-ion batteries. That makes it an increasingly popular choice for home storage. Older lead acid batteries are less common in home energy storage but sometimes play a role.
Home batteries have plenty of benefits which vary with how you use them.
Batteries can protect you from blackouts, which have been increasing in frequency thanks to more severe weather and aging transmission infrastructure. On their own, batteries can keep your home’s essentials powered up during an outage, though without a way to charge, a battery may not get you through an extended outage.
Paired with solar panels, which can charge a battery throughout the day, home battery storage systems can keep your essentials running through an extended outage. The appliances you want to power with your batteries will determine how many you need. How much power those appliances require to both start and run are important considerations.
Batteries are essentially a requirement to keep solar panels running during a blackout. Without a backup battery, solar panels are designed to shut down with the grid for safety reasons.
Solar panels are financially beneficial in two ways: They let you avoid buying energy from your utility and, where programs are available, they let you sell energy back to it at the most valuable time.
Without a battery, solar panels let you avoid buying grid energy when the sun is out. Storing extra energy for later use can let you avoid even more.
Many utilities compensate you for the electricity your solar panels send back to the grid, though at different rates throughout the day. Storing that energy to sell back to the grid at the most valuable time is another way to boost the value of your solar panels. This is how it works for many Californians, thanks to NEM 3.0. In many other parts of the country, batteries may not save money, so their value comes from their backup ability.
Just like you can store electricity and use it to maximize your savings, you can do it to maximize the amount of clean solar energy you use. By storing extra solar power and using it later, you can maximize your savings and your environmental impact.
Choosing the right home battery requires matching it to your energy goals. Here’s what sets batteries apart.
Capacity: Capacity, measured in kilowatt-hours, is how much actual electricity a battery stores. A Tesla Powerwall has a 13.5 kWh capacity. A Generac PWRcell has a starting capacity of 9 kWhs that can increase in increments of 3 kWhs up to 18 kWhs.
Power rating: Power output is typically given in two numbers: continuous and peak. Continuous output is how much power the battery can release at a continuous rate. Peak output is how much a battery can release over a shorter time, typically a few seconds. Since many appliances require a brief burst of energy to start up, peak output is an important factor.
Warranty and lifespan: Like any battery, home batteries degrade with time and use. Warranties are typically measured in years and charge-discharge cycles. If a warranty guarantees 70% capacity for 10 years and 7,000 cycles, you should have at least 70% of the battery’s original capacity at least until reaching either of those benchmarks.
Efficiency: No battery system is 100% efficient. A battery with a 90% efficiency will give you 9 kWhs of electricity for every 10 kWhs you put in.
To get an idea of how much energy capacity and power output you need, first decide what you’ll need in an emergency. The fewer appliances you back up, the less battery capacity and power required. A professional battery installer will be able to advise you, but you can get an idea by looking at the appliances you want to back up.
You can find your appliances’ energy requirements on a sticker attached to the appliance itself or in the owner’s manual. In my apartment, my refrigerator draws 517.5 watts, my microwave draws watts, and my water heater draws 4,500 watts. If all of those were running continuously for an hour they’d consume about watt-hours, or 6.5 kWhs, about half a Powerwall’s capacity. None of these appliances run continuously, though.
Another way to think about your battery capacity needs is through your average consumption. In , the average American household bought about 900 kWhs of electricity each month, or about 30 kWhs each day, though you’ll likely use less when trying to conserve energy during a blackout.
Here’s the base capacity of leading home batteries today.
The vast majority of people should hire a professional to install their batteries. The installation process may vary by installer but generally follows a few typical steps.
Lithium-ion batteries are low-maintenance technology. Aside from making sure you don’t drain them too low — which may be automated — as long as you don’t physically harm them, you shouldn’t have any problems.
Your battery will degrade, though that’s not something to worry about. Most batteries have a certain level of degradation covered in their warranty. If you believe your battery is performing below that level, contact the manufacturer.
A very small number of batteries have caught fire from a process known as thermal runaway. It’s not common but is more likely with damaged, poorly manufactured, or poorly installed batteries. If your battery is damaged after installation, get it inspected by a professional.
A home battery installation can cost more than $10,000, but it can enhance your solar savings and provide non-monetary benefits like keeping important systems powered up during an unexpected blackout.
Government incentives, like the 30% clean energy tax credit, can lop thousands of dollars off of that cost. Utilities may also have battery incentives. Xcel Energy offers rebates for batteries if you participate in occasional ‘control events,’ where the utility takes some of your battery’s stored energy to meet peak demand. Other utilities or third-party companies offer similar incentives.
Of the people who install home batteries, over 50% do so primarily for backup power, according to a survey of installers by SolarReviews. But even when the goal is resilience, batteries can earn some money back by joining a virtual power plant to send power to the grid when it’s needed.
Paired with solar, a home battery storage system can save you money in places where avoiding grid electricity is more valuable than sending solar power back to your utility. The percentage of solar installations with batteries attached jumped from 10% to 60% after California utilities changed from a net metering system to a net billing one, according to the Lawrence Berkeley National Laboratory.
Even though modern battery technology is sophisticated and capable, more innovation is on the way.
As big batteries become more common at homes and in cars, they’ll likely get cheaper. That would continue the trend of the last decade, according to BloombergNEF, which says battery packs cost $139/kWh in , down from $780/kWh in . BloombergNEF predicts prices as low as $80/kWh in . (This price isn’t for the finished product and includes batteries used in vehicles and stationary storage, like at home. It’s not representative of the price you’ll pay an installer, but does illustrate a real trend in price.)
Batteries will also likely get smarter. Many batteries can already work with complicated utility rates to help you avoid buying the most expensive electricity. As homes get more internet-connected devices, batteries will have more potential to be more specific and nimble in how they power your house. Technology like smart electric panels and breakers will increase their flexibility.
Batteries also stand to play a large role in the energy transition as more wind and solar power are added to the grid. Since the sun doesn’t always shine and the wind doesn’t always blow, storing energy for later use will be necessary. Expect virtual power plants and other compensation schemes for residential batteries to continue and expand.
Home battery storage systems offer resilience and additional energy savings, especially when paired with solar. They can help you weather a blackout, avoid expensive grid electricity, and let you use power from your solar panels, even after the sun goes down. Depending on where you live, your savings could be even greater with additional storage incentives or the option to join a virtual power plant.
To find out how solar and storage can reduce your monthly electric bill, start with Palmetto’s solar savings Cclculator and reach out to one of our solar advisors today for a personalized solar quote.
Are solar home battery storage systems worth it?
Batteries can save you more money than standalone solar in some parts of California. In other places, they may not pay for themselves in savings, but can provide valuable emergency backup power that’s cleaner and quieter than a generator.
Can a battery back up my house?
Backup batteries can provide emergency electricity during an outage. Often, they backup specific circuits in your home that power essential appliances or devices. You may have the option to set your battery up as an arbitrage, or consumption only, battery. These battery configurations don’t offer backup power.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
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