Commercial Storage 101: Learn the Basics of Batteries

Sabrina Lopez
March 14, 2019
4 min read

Energy storage has long been heralded as the final critical link in the self-generation, renewable energy evolution. After all, when you can store your excess solar energy for use anytime, you're empowered with an around-the-clock alternative to dirty and increasingly expensive grid power. Batteries are also useful in squashing demand fees or keeping the most critical parts of your business operational during unexpected power outages. For these reasons, batteries have become one of the hottest topics in solar energy and the focal point for significant R&D development resources across the industry. 

Look at the infographic below to learn more about what batteries can do for your organization. Our good friends at SunPower put it together, and it's a great resource for better understanding how commercial battery storage works and how adding a storage solution can dramatically alter your energy profile and improve your bottom line. 

Unlocking Energy Efficiency and Revenue with Battery Storage Systems

As the global landscape shifts towards renewable energy amidst challenges like an aging electrical grid and extreme weather events, the demand for innovative energy solutions has never been higher. Battery storage systems have emerged as a pivotal technology, offering businesses a way to reduce utility bills, enhance energy flexibility, and generate revenue. This comprehensive guide delves into the essence of battery storage, exploring its benefits, applications, and the newfound opportunities it presents for forward-thinking organizations.

Understanding Battery Storage: A Gateway to Energy Flexibility

At its heart, energy storage enhances the balance between electricity supply and contributes to a more reliable, efficient, and cleaner grid. Battery storage systems play a crucial role in maintaining grid stability by storing surplus energy and providing it when needed, especially during peak demand periods or power outages. This capability supports the electrical grid and offers numerous advantages to energy users.

The Four Pillars of Energy Storage

Energy storage can be categorized into four main types, each with unique characteristics and applications:

  1. Electrochemical Systems: Including lithium-ion and flow batteries, known for their high energy density and efficiency.
  2. Thermal Systems: Such as those that store heat in materials like rocks.
  3. Mechanical Systems: Covering technologies like pumped hydro, compressed air, and gravity-based storage.
  4. Chemical Systems: Encompassing capacitors and hydrogen storage solutions.

Lithium-ion batteries are particularly suitable for a broad range of applications, from short-duration tasks like peak shaving to potential roles in long-duration energy storage as the grid evolves.

Maximizing Benefits with Battery Storage

Battery storage is not just about energy efficiency; it's a strategic asset that can provide a wide array of services:

  • Energy Market Services: Fast response capabilities of battery systems enable participation in ancillary service programs and other grid-supportive services, creating revenue opportunities.
  • Utility Services: These systems can defer the need for costly infrastructure upgrades by providing services like congestion relief and enhancing local grid adequacy.
  • Customer Services: For businesses, on-site (behind-the-meter) battery storage systems offer direct control over energy usage, reducing costs and supporting renewable energy consumption.

Exploring the Economics of Battery Energy Storage

Investing in battery storage can significantly impact your bottom line. From managing demand charges to engaging in time-of-use energy arbitrage, the financial benefits are compelling. When paired with solar energy, the savings potential and sustainability impact are even greater, making a strong case for integrating battery storage into your energy strategy.

Operational Excellence with Trusted Partners

While purchasing and managing a battery storage system independently may seem appealing, energy markets' complexity and dynamic nature suggest a suggested approach. Partnering with experienced energy firms can unlock the full potential of battery storage, ensuring optimal system performance and maximizing financial returns without the operational burden.

Financing Solutions and Safety Considerations

Understanding the financing options is crucial, especially for organizations concerned about upfront costs. Flexible financing models, such as benefit-share agreements, offer a path to adoption with minimal risk. Safety, always a paramount concern, is well managed in lithium-ion battery systems, with industry standards ensuring safe operation across various applications.

Towards a Sustainable Future: Recycling and Inflation Reduction Act Benefits

As battery systems reach their end of life, recycling becomes a key consideration, ensuring sustainability and circularity in energy storage solutions. Additionally, the Inflation Reduction Act of 2022 introduces tax credits for standalone energy storage, offering financial incentives that enhance the feasibility and attractiveness of battery storage projects.

Is Battery Storage Right for Your Organization?

Determining the suitability of battery storage for your business requires carefully analyzing your energy needs, operational patterns, and potential benefits. With the support of specialized consultants, you can explore customized solutions that align with your goals for cost savings, sustainability, and energy independence.


Battery storage stands at the forefront of the renewable energy revolution, offering businesses a versatile tool for reducing costs, supporting the grid, and advancing towards a sustainable future. Organizations can make informed decisions that align with their energy and financial objectives by understanding the fundamentals, benefits, and strategic considerations of battery storage.


Battery Storage_SunPower

Suppose you've been thinking about adding solar plus energy storage to your commercial operation or learning how solar can help your business and its energy goals. In that case, we invite you to schedule a consultation with a member of our commercial solar team.