Everything You Need to Know About Commercial Solar Battery Storage
Whether your company is just getting started with solar or has been reaping the benefits for years, adding battery storage can take your system to the next level. Instead of selling excess solar power back to the grid at a lower rate, your business can store and use this energy when utility rates spike. The result is increased resiliency, additional cost savings, and less reliance on fossil fuels, moving your business one step closer to sustainability goals.
That said, solar battery storage might not be the right choice for every company. In this article, we’ll cover everything you need to know about commercial solar battery storage, including how solar batteries work, their key applications and benefits for companies, and things to consider when deciding if the upgrade is right for your business.
What are solar batteries and how do they work?
Energy storage, or batteries, capture and store excess power generated by solar panels. This energy can then be used when your panels aren’t producing electricity, like nighttime hours. Batteries also provide operational resiliency, powering your business during grid outages or blackouts.
Without solar batteries, any extra power your solar panels generate would be sold back to the grid at a lower rate, limiting your return on investment and overall efficiency of your solar system.
Here’s a simple breakdown of how solar batteries work:
- Step 1: Solar power is generated: Sunlight hits your solar panels and stimulates electrons, generating direct current (DC) electricity.
- Step 2: DC is converted to AC: Businesses, like homes, use alternating current (AC). An inverter converts the DC electricity from the panels into AC power that can be used by your business or fed back to the electricity grid.
- Step 3: Solar battery is charged: If your solar system produces more energy than your business needs, any extra electricity is diverted to charge your solar battery.
- Step 4: Energy is stored: Inside the battery, chemical reactions convert and store the electrical energy as potential energy. Most solar batteries rely on lithium-ion technology.
- Step 4: Power is discharged: When your solar panels aren’t producing enough electricity to meet your needs, the battery discharges its stored solar energy and sends it back through the inverter to be converted back into AC power.
- Step 5: The battery powers your business: The converted AC electricity powers your business equipment and devices, providing a seamless backup when solar generation is low.
See More: What to Know About Commercial Solar Panels
Why install solar batteries for commercial systems?
Solar energy storage is becoming increasingly essential for businesses looking to cut energy costs and take control over their energy usage – let’s look into how solar batteries can improve your current commercial solar power setup.
Resiliency
Energy storage shields your business from power outages. With a battery, you can keep critical electrical appliances - like air conditioners - operating while the grid is repaired. Imagine refrigeration systems protecting food from spoiling, or a medical facility that needs consistent electricity for life saving devices. Keeping critical devices running, regardless of grid condition, is a major benefit to commercial energy storage.
Peak shaving
Many utilities impose demand charges for commercial and industrial clients. These are fees based on your highest energy usage in a billing cycle. Solar batteries can help your business avoid these peak demand charges by letting you store excess energy when demand is low and use it during peak times when energy rates spike. This can significantly reduce your demand charges and lead to even more savings on utility bills.
Peak shaving is especially useful if your business has predictable energy use. For example, if your energy tends to spike during certain hours (say, a manufacturing plant starting up heavy machinery at the start of the day), you can use solar batteries to power operations during those spikes and reduce your peak electricity load.
Load shifting
Load shifting involves moving your most energy-intensive operations to times of day when electricity is cheaper, and using solar battery power at times when grid prices are at their most expensive. You’ll still be using the same amount of electricity but ‘shifting’ the times of day when you do so.
For example, most solar-powered businesses switch to grid power when the sun sets. This not only leads to a quick increase in consumption (resulting in demand charges), but also higher electricity bills as late afternoons and evenings tend to have the highest utility rates.
Instead of relying on grid power at night when utility rates are highest, your business can tap into the energy your battery has stored during the day. By being strategic with how you use your solar battery, you can reduce overheads and maximize the efficiency of your solar system.
Benefits of commercial solar battery storage
Adding a battery to your commercial solar system can completely transform how your company uses electricity, providing cost savings, energy independence and resilience, and increased sustainability. Let’s take a closer look at why a commercial energy storage system makes a smart investment.
Reliable backup power
If your business can’t afford to experience a power outage – like healthcare facilities, manufacturing plants, or data centers – solar battery storage can be a lifesaver. With a solar battery, your business can keep operations running even when the grid is down, minimizing costly downtime and protecting critical functions. Having this extra layer of energy resilience can be the difference between business continuity and massive disruptions that cost you money.
Lower energy costs
The bottom line is at the core of any business decision, and energy storage systems can help add to your cost savings from solar. By storing excess solar energy and using it during peak hours when utility rates are highest, you can reduce energy expenses and protect your business from volatile electricity prices.
Reduced carbon footprint
Adding solar battery storage means your business can use clean, sustainable energy more often and reduce its dependence on utility power produced from fossil fuels. This lowers your greenhouse gas emissions and helps you meet sustainability goals while contributing to a healthier planet.
Customers will notice, too – being a greener company can enhance your brand’s reputation and help you resonate with the increasing number of consumers who prioritize environmental responsibility.
Energy independence
Solar batteries give your business more freedom to operateindependently from the grid. You’re no longer tied to rising electricity prices or subject to unexpected grid outages. Instead, you have control over your energy usage and can decide when to store and when to use power. This level of energy independence means even greater savings, especially if you charge your batteries during off-peak times and use the stored energy when electricity rates spike.
Optimize solar efficiency
With commercial battery storage, none of the energy your solar panels generate will go to waste. Instead of selling surplus power back to the grid at lower rates, you can store it and use it when you need it the most. This maximizes the efficiency of your solar system and increases your overall return on your investment.
Continue Reading: 7 Tips to Keep Your Commercial Solar Operating at Peak Efficiency
Things to consider for commercial solar batteries
While the benefits of commercial solar batteries are clear, it’s important to weigh up some key considerations before making the investment. Here’s what to keep in mind when deciding whether to add solar battery storage to your commercial solar system.
High initial costs
Solar battery storage can increase the upfront costs of your commercial solar installation. This includes the cost of the batteries themselves as well as installation and any necessary upgrades to your existing solar infrastructure. While the long-term savings from reduced energy bills and the potential for fewer operational disruptions, your business needs to be prepared for the higher initial outlay.
We recommend evaluating your business’s current energy consumption and expenses and considering whether the long-term cost savings and energy independence are worth the initial investment. Depending on your unique energy needs, you might be able to phase in commercial battery storage over time or start with a smaller system that grows with your business.
Maintenance and lifespan
To keep your commercial solar batteries operating at peak performance, you’ll need to schedule in regular maintenance. Like any piece of equipment, solar batteries have a lifespan, and proper care will help extend it. Routine inspections and monitoring can help prevent major issues from cropping up down the road.
Note that, depending on how they’re used, lithium-ion solar batteries tend to have a lifespan of 10 to 15 years. When planning your system, factor in the potential need to replace batteries in the future as well as the costs associated with professional maintenance.
Space requirements
Depending on your business, you might need more than one solar battery to meet energy demands. These commercial energy storage systems can take up a fair amount of space. You’ll need to dedicate an area that’s temperature-controlled, accessible for installation and maintenance, and doesn't disrupt your daily operations.
For larger commercial setups, this might involve creating or modifying spaces like storage areas or utility rooms. It’s important the space you choose is properly ventilated and protected from extreme temperatures, to extend the lifespan of your battery. Some larger commercial energy storage systems come with their own temperature controlled enclosure.
Energy needs and usage
Before committing to battery storage, assess your business’s energy usage patterns. When does your company use the most energy? Are you subject to demand charges during peak hours? Understanding your energy needs will help you determine the right battery size and capacity for your system.
For example, businesses with consistent energy demand during peak utility times, like office buildings or manufacturing plants, might benefit more from load shifting strategies. On the other hand, companies with unpredictable energy usage might find peak shaving more beneficial. Tailoring your battery system to your specific consumption patterns is essential for maximizing savings and efficiency.
Keep Reading: Are Commercial Solar Panels Worth It?
Should you add battery storage to your commercial solar system?
Deciding whether battery storage is right for your business really comes down to your specific energy needs, financial goals, and long-term vision. For companies already benefiting from solar energy, and willing to accept a longer financial payback, battery storage is a natural next step that can deliver more savings, backup power, and increased control over your energy use.
As energy prices continue to fluctuate, solar batteries give your business a layer of protection and stability. They can shield you from rising electricity costs and give you more control over when and how you use electricity. If you’re dealing with unpredictable energy bills or just looking to take your sustainability efforts to the next level, now is the perfect time to explore solar battery storage.
Whether you already have commercial solar and want to add a battery or you’re just getting started with solar, our team is here to help. Contact us today to start talking solar.