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Commercial Battery Storage: 5 Key Reasons Businesses Invest

Have you considered commercial battery storage + solar for your business?

In an era of increasing energy demands and growing concerns about climate change, the adoption of renewable energy sources has gained significant momentum. Among these, solar energy has emerged as a key player, offering clean, abundant power. But for businesses, commercial battery storage is providing a silver bullet to the soaring cost of operation.

The intermittent nature of solar energy production poses a challenge in meeting ’round-the-clock’ energy needs. This is where Chelion’s residential and commercial battery storage comes in, revolutionising the solar industry by enhancing energy reliability, optimising consumption, and unlocking substantial financial benefits.

In some circumstances, where peak demand spikes intermittently, we have seen payback periods of under 5 years and 25% internal rates of return when pairing battery + solar.

As energy prices continue to soar country-wide, more and more businesses are turning to Solar + a Commercial Battery to offset their peak demand TOU tariffs.
As energy prices continue to soar country-wide, more and more businesses are turning to Solar + a Commercial Battery to offset their peak demand TOU tariffs.

Generate it, Store it, Use it: Maximise Your Self-Consumption

Battery storage allows solar energy systems to store excess energy generated during the day for use during nighttime or periods of low solar production.

By maximising self-consumption, commercial battery storage significantly reduces reliance on the grid, minimising or even eliminating electricity bills. This translates into immediate operational expense (OPEX) savings and greater control over energy expenses, resulting in substantial financial benefits over the system’s lifespan.

Got Energy Peaks? Demand Charge Management

Commercial and industrial electricity consumers often face hefty Time of Use (TOU) demand charges, which are based on their peak power usage during specific time frames.

Battery storage enables solar system owners to mitigate these charges by discharging stored energy during peak demand periods, effectively reducing overall electricity costs.

By strategically managing peak demand, battery storage not only minimises expenses but also provides a reliable source of backup power during grid outages, further safeguarding businesses from financial losses.

Cheaper energy during the day: Time-of-Use Optimisation

Many utility companies have recently adopted TOU pricing structures for both residential customers and businesses, where electricity rates vary based on the time of day. Battery storage, when integrated with solar installations, enables homeowners and businesses to shift energy consumption to low-rate periods and store excess solar energy during peak-rate hours.

This flexibility empowers energy consumers to optimise electricity consumption patterns, thereby minimising costs and improving overall financial efficiency.

Buying and Selling energy: Ancillary Services and Grid Support

Battery storage systems can also participate in ancillary service markets (such as the FCAS market), providing additional revenue streams.

These services include frequency regulation, voltage support, and peak shaving. By participating in these markets, battery owners (especially larger, commercial battery systems) can earn income by offering their stored energy to support the stability and reliability of the grid.

These additional revenue streams contribute to the financial feasibility of battery storage investments and enhance the return on investment.

Preparing for the unknown: Future-Proofing, Grid Independence and Back up

Investing in battery storage alongside solar installations future-proofs energy systems against rising electricity prices and grid uncertainties with wholesale Energy prices soaring 141% this year alone, and end-user bills jumping 18.3% on average amid a rising ‘cost-of-living crisis’.

It offers resilience during blackouts and natural disasters, ensuring uninterrupted power supply and reducing the financial burden associated with energy interruptions.

By safeguarding against escalating energy costs and providing reliable backup power, battery storage offers peace of mind and long-term financial benefits.

Thinking of going green? Speak to one of our Chelion Renewables team for a feasibility study today!

Want to read more? Our Chelion blog has all the latest residential and business battery news.