Is Commercial Battery Storage Worth It for a Business?

Commercial Battery Storage can be worth it for a business when the battery reduces expensive grid electricity, demand charges or wasted solar energy. However, the financial return depends on your electricity tariff, load profile, solar generation and battery size.

A battery is not automatically a good investment for every business. Therefore, businesses should assess their actual electricity data before investing in a Commercial Battery.

How Does Commercial Battery Storage Save Businesses Money?

A Commercial Battery stores electricity and releases it when the business needs it most.

For a business with solar, the battery can store surplus daytime generation. The business can then use that energy after solar production falls.

This can reduce electricity purchased from the grid. It can also increase the amount of solar energy consumed on-site.

Australian Government guidance identifies increased self-consumption, time-of-use savings and peak demand reduction as key battery value streams.

Solar Self-Consumption

Consider a warehouse that generates more solar power at midday than it uses.

Without storage, some surplus electricity may be exported. With a battery, suitable surplus can charge the battery.

The stored energy can then support evening operations. This can reduce reliance on grid electricity.

When Is Commercial Battery Storage Worth It?

Commercial Battery Storage is more likely to make financial sense when a business has one or more strong battery use cases.

A business with significant demand charges can use a battery for peak shaving. The battery discharges during selected periods of high demand.

Businesses with time-of-use tariffs can also shift energy consumption. They can store lower-cost energy and use it during higher-cost periods, subject to tariff conditions.

Read More: Is Commercial Battery Storage Worth It for a Business?