The Benefits of Battery Storage for Your Business

Energy storage provides an array of benefits for your organization. By optimizing a battery for your facility, you can reduce costs and make sustainability a core business strategy.

Solar power systems coupled with battery energy storage provide around-the-clock energy. This helps lower energy costs and offsets the effects of time-of-use utility billing.

Cost-Effective

The price of battery storage has dropped significantly in recent years. According to a study by BloombergNEF, it costs less than $100 per kilowatt hour today (up from just $140/kW in 2021). It can be even more cost-effective if your organization is on a utility with high demand charges or offers net metering.

Energy storage systems are also often eligible for federal tax credits – the Battery Storage 30% Investment Tax Credit and the Business Energy Efficiency Tax Credit. Additionally, states like California offer incentive programs to encourage battery storage development. Identifying all potential value streams is critical to determine whether installing an energy storage system at your organization makes financial sense.

Battery energy storage allows you to capture and dispatch renewable energy on-demand. It can store direct current (DC) electricity and power appliances that use alternating current (AC). You’ll need an inverter to convert DC electricity into usable AC electricity. Some inverters work with solar systems and other battery energy storage, while others are designed to function separately. The additional equipment can add a few thousand dollars to your project budget.

Energy storage can also provide a variety of grid services that help balance supply and demand. For example, it can help manage the peaks and troughs in electricity demand that engineers face every day. Fossil fuel peaker plants traditionally fill this role – but they can be replaced by battery storage over time.

Boosts Sustainability

The energy industry is rapidly moving toward renewables, and battery energy storage systems (BESS) are key to helping these resources make a steady contribution to the grid. BESS enable services such as peak shaving and self-consumption optimization to reduce power costs, or backup power during outages. This is a powerful way to boost the value of your business while also supporting sustainability and environmental, social, and governance (ESG) goals.

In addition, BESS can be used to reduce emissions by offsetting fossil fuel generation during the highest energy demand periods. This helps to meet peak demand without increasing carbon emissions, which is critical for achieving net zero. BESS can also replace some of the need for so-called peaker plants, which are costly and produce a significant amount of carbon.

Energy storage provides numerous benefits to homeowners as well, including reduced power bills and energy independence. In addition, installing energy storage in your home may increase the resale value, as it appeals to environmentally conscious buyers who prioritize sustainability features when purchasing properties.

Increases Efficiency

Energy storage is a key component of energy-efficient buildings. By storing renewable energy that would otherwise be wasted during off-peak hours and discharging it during peak periods, it helps businesses save on their energy costs and reduce their carbon footprint.

It also enables organizations to take advantage of a variety of value streams by participating in electricity markets and programs such as demand response and energy flexibility. This provides a way to offset the capital cost of battery storage and creates a pathway towards net-zero energy.

Energy storage improves the integration of renewable energy resources by reducing curtailment of renewable generation and increasing grid reliability. It also provides operational flexibility for power system operators, allowing them to solar battery manufacturer react quickly to unexpected changes in demand or supply.

In addition, battery energy storage can help reduce peak pricing, which happens when electricity is scarce and expensive. Just like the price spikes we’ve all experienced on rideshare apps, high energy prices are caused by peak demand. Battery storage can help avoid these peak pricing spikes by absorbing excess energy during off-peak times and discharging it during high-demand periods.

Battery energy storage is a great solution for organizations looking to optimize their energy usage and reduce costs, as well as enhance sustainability and resilience. To find out if it makes sense for your business, we recommend conducting a feasibility study to determine whether or not a battery storage project is right for you. If it does, Enel can help finance the project for you through flexible financing options, such as various variations on a benefit-share agreement.

Reduces Dependence on the Grid

A battery energy storage system uses the same technology as batteries in consumer electronics to convert electrical energy into stored chemical energy and back again when required. The difference is that a battery used for the power grid has many more functions than those in your phone or laptop.

Energy storage enables businesses and residents to reduce their dependence on the grid for electricity, providing backup power and enabling them to participate in demand response programs. When combined with renewables, it also helps to ensure a continuous, “always on” energy supply.

It can help to smooth energy demand by reducing peak pricing, similar to how rideshare companies price their services at peak times. It can also reduce the need for fossil fuel generation and make existing generators more efficient, lowering electricity rates.

Adding battery storage to solar and wind farms can enable the plants to be dispatched during peak periods when electricity usage is highest (for example, on summer afternoons and evenings when temperatures rise and demand for air conditioning soars). This helps alleviate the intermittency issue that plagues renewable energy sources like sun and wind.

Residential battery storage systems can also allow homeowners to manage their energy consumption and shift usage, which lowers electricity costs. This can increase a home’s value and is an attractive feature for potential buyers when it comes time to sell.