7 Benefits of Using a Battery Energy Storage System for Businesses

Businesses rely on a stable electricity supply to keep equipment, facilities, and essential operations running. At the same time, changing electricity costs, peak demand charges, renewable energy targets, and the need for greater energy resilience are making energy management an increasingly important consideration.

A battery energy storage system (BESS) gives businesses a way to store electricity and use it when it is most needed. Depending on how the system is designed, stored energy can support operations during outages, help manage periods of high electricity demand, and make better use of renewable generation such as solar.

The benefits of BESS extend beyond simply providing backup power. For commercial and industrial facilities, a properly designed battery energy storage system can support several aspects of energy management while providing greater flexibility in how electricity is consumed.

In this article, we look at seven key benefits of using a battery energy storage system for businesses and the factors to consider when deciding whether BESS is suitable for a particular facility.

What Is a Battery Energy Storage System?

A battery energy storage system (BESS) stores electrical energy so it can be used at a later time. For businesses, this can provide more flexibility in how and when electricity is consumed, rather than relying entirely on electricity from the grid at the moment it is needed.

A typical BESS includes battery modules along with a battery management system (BMS), power conversion equipment, energy management controls, and supporting safety and thermal-management systems. These components work together to charge the batteries, monitor operating conditions, and deliver stored electricity to the facility when required.

The battery can be charged from the grid, renewable generation such as solar, or other suitable electrical sources, depending on the system configuration. During periods when stored energy is needed, the system discharges electricity to connected loads.

For businesses, the value of BESS comes from how that stored energy can be managed. A system may be configured to support operations during a power outage, reduce electricity consumption during periods of high demand, store surplus solar generation, or shift energy use to a more suitable time.

The size and configuration of a battery energy storage system depend on the facility's requirements. Factors such as electricity demand, critical loads, desired backup duration, renewable generation, operating schedule, and available space all influence the design. This means BESS should be assessed based on the specific energy requirements of the business rather than as a one-size-fits-all solution.

7 Benefits of Using a Battery Energy Storage System for Businesses

1. Reduce Peak Electricity Costs

Electricity demand can vary significantly throughout the day, and some businesses face higher charges when their power consumption reaches peak levels. A battery energy storage system can help manage these periods by supplying stored electricity when demand is high.

Instead of drawing all required power from the grid during a peak period, a BESS can discharge to support part of the facility's load, depending on the system configuration and electricity tariff structure. The battery can then recharge when electricity demand is lower or when suitable energy is available.

This approach, often referred to as peak demand management or peak shaving, can help businesses manage their electricity consumption more effectively. The potential financial benefit depends on the site's tariff structure, load profile, battery capacity, and how frequently the system can be used for this purpose.

2. Improve Backup Power and Energy Resilience

A battery energy storage system can provide stored electricity when the main grid supply is interrupted. This can be particularly useful for businesses where even a short power interruption can affect equipment, production, communications, or other critical operations.

Unlike a conventional generator, a battery system does not need to start an engine before supplying stored energy. When properly configured, it can respond quickly to an outage and support selected critical loads.

The amount of backup available depends on the battery's usable capacity and the power required by the connected equipment. Businesses therefore need to identify their critical loads and required backup duration when determining the appropriate BESS size.

3. Make Better Use of Solar Energy

Businesses with solar generation may produce electricity at times when their facility does not need all of it. Without storage, surplus electricity may be exported to the grid or otherwise used according to the site's energy arrangement.

A BESS can store suitable surplus solar generation and make that energy available later. For example, electricity generated during the day could be stored and used during the evening or another period when solar production is lower.

Different storage technologies can be used for this purpose, including flow battery systems designed for applications where longer-duration energy storage may be required.

This can help businesses increase the flexibility of their solar installation and better align renewable generation with their actual electricity demand.

4. Reduce Dependence on Grid Electricity

A battery energy storage system can give businesses another source of electricity alongside their grid connection and onsite generation. By storing energy when it is available and discharging it when required, the battery can change when the facility draws electricity from the grid.

The level of grid dependence that can be reduced varies by application. Factors such as battery capacity, facility demand, renewable generation, operating hours, and grid availability all influence how much stored energy can contribute to the site's electricity requirements.

BESS is therefore not necessarily about disconnecting from the grid. Instead, it can provide businesses with greater control over when and how electricity is consumed.

5. Support Energy Demand Management

Managing electricity demand is an important consideration for facilities with variable or high power consumption. A battery system can be programmed to charge and discharge according to the facility's energy requirements and operating conditions.

A redox flow battery is another technology that can be considered for renewable energy storage, particularly where the project requires specific power and energy-duration characteristics. 

For example, a BESS could charge during periods of lower demand and discharge when the facility's electricity consumption increases. This can help smooth the facility's demand profile and reduce the need to draw as much power from the grid during selected periods.

The effectiveness of this approach depends on the site's actual load profile and the control strategy used. Battery capacity and power output also need to be matched to the facility's demand patterns.

6. Support Renewable Energy Integration

As businesses add solar and other renewable generation, energy storage can help address the difference between when renewable electricity is produced and when electricity is needed.

Solar generation, for example, is generally strongest during daylight hours, while a business may have significant electricity requirements at other times. A BESS can store electricity when renewable generation is available and discharge it later, subject to available capacity and system operating conditions.

This makes battery storage useful for businesses looking to combine renewable generation with a more flexible electricity supply. It can also help support energy strategies where renewable electricity needs to be available beyond the period in which it is generated.

7. Create More Flexible Energy Management

One of the broader benefits of a battery energy storage system is that the same equipment can potentially support multiple energy-management functions.

Depending on the system design, a business may use its BESS for backup power, peak demand management, solar energy storage, load shifting, or other applications. The system's controls can determine when the battery charges and discharges based on factors such as electricity demand, renewable generation, and backup requirements.

This flexibility can be particularly useful for commercial and industrial facilities whose energy requirements change throughout the day or across different operating periods.

However, these benefits depend on proper system sizing, controls, electrical integration, and the facility's operating profile. A BESS should therefore be designed around the specific objectives of the business rather than assuming that every battery system will provide the same benefits.

Read More: Battery Energy Storage System vs Traditional Backup Power

Which Businesses Can Benefit from a Battery Energy Storage System?

A battery energy storage system can be considered by businesses with high electricity demand, variable load profiles, renewable energy generation, or a need for additional power resilience. The value of BESS depends on how the system is integrated with the facility and the specific energy challenges the business needs to address.

Manufacturing and Industrial Facilities

Manufacturing sites often operate energy-intensive equipment and may experience significant changes in electricity demand throughout the day. BESS can support peak demand management, store renewable electricity, and provide backup power for selected critical loads.

For facilities where an unexpected outage can interrupt production, battery storage can also form part of a broader energy resilience strategy.

Commercial Buildings

Office buildings, retail facilities, warehouses, and other commercial properties can use BESS to manage electricity consumption and make better use of onsite renewable generation.

A battery can store electricity when suitable energy is available and discharge it during periods of higher demand. The potential benefits depend on the building's operating schedule, electricity tariff, load profile, and available generation.

Data Centres and Critical Facilities

Data centres and other facilities with critical electrical loads place particular importance on power continuity. A BESS can be integrated with other backup systems to provide rapid-response power and support selected critical equipment during an interruption.

The required battery capacity and configuration depend on the facility's power requirements, redundancy strategy, and desired backup duration.

Businesses with Solar Installations

Businesses that already have solar generation may use BESS to store electricity produced when generation exceeds immediate demand. The stored energy can then be used at another time when electricity is required.

This can help align renewable generation with the facility's operating schedule and provide greater flexibility in how solar electricity is used.

Ultimately, the suitability of a battery energy storage system depends less on the type of business alone and more on its energy consumption, operating profile, power requirements, renewable generation, and resilience needs. Assessing these factors can help determine whether BESS can provide practical value for a particular facility.

What to Consider Before Installing a Battery Energy Storage System

Before investing in a battery energy storage system, businesses should assess how the system will fit their electricity requirements, site infrastructure, and operational objectives. A BESS can support several applications, but its performance and financial value depend heavily on choosing the right system size and configuration.

Electricity Demand and Load Profile

Review how much electricity the facility uses throughout the day and when demand is highest. A detailed load profile can help determine the required battery power output and identify opportunities for peak demand management or load shifting.

Required Battery Capacity and Backup Duration

If backup power is one of the objectives, determine which loads need to remain operational and for how long. The battery needs enough usable energy capacity to support those loads for the required period.

Renewable Energy Generation

Businesses with solar or another renewable energy source should consider how much generation could be stored and when that stored energy would be needed. This can influence the required battery capacity and charging strategy.

Available Space and Site Infrastructure

The physical installation area, electrical connection, access requirements, and environmental conditions should all be assessed before selecting a system. The battery and supporting equipment need to be compatible with the available site infrastructure and operating conditions.

System Controls and Integration

A BESS may need to interact with the facility's electrical system, renewable generation, backup equipment, and energy-management controls. The control strategy should reflect the business's priorities, whether those involve backup power, demand management, solar utilisation, or several applications at once.

Lifecycle Costs and Maintenance

The initial purchase price is only one part of the investment. Businesses should also consider installation, maintenance, energy costs, expected battery performance over time, replacement requirements, and other operating expenses when assessing the overall economics of a BESS.

Battery chemistry is also an important consideration when assessing project economics. Factors such as system capacity, expected operating life, maintenance, installation requirements, and vanadium redox flow battery cost can all form part of the overall lifecycle assessment. 

Taking these factors into account before installation can help businesses select a battery energy storage system that is appropriately sized and aligned with their actual energy requirements.

Conclusion

A battery energy storage system (BESS) can provide businesses with more flexibility in how they generate, store, and use electricity. From managing peak demand and supporting backup power to making better use of solar generation, battery storage can serve several functions within the same energy system.

However, the benefits of BESS depend on the individual facility. Electricity demand, load profile, required backup duration, renewable generation, available space, system controls, and lifecycle costs all need to be considered before installation.

For businesses evaluating energy storage, the key is to identify the specific energy challenges the system needs to address and then size and configure the BESS around those requirements. When properly planned, battery storage can become an important part of a broader strategy for more flexible

FAQs

What is a battery energy storage system used for in a business?

A battery energy storage system (BESS) can be used for several purposes, including peak demand management, backup power, solar energy storage, load shifting, and renewable energy integration. The applications available depend on the system's design and the facility's energy requirements.

Can a battery energy storage system reduce electricity costs?

A BESS can potentially help reduce electricity costs by supplying stored energy during periods of high demand or when grid electricity is more expensive, depending on the applicable tariff structure. The potential savings depend on factors such as the facility's load profile, battery capacity, operating strategy, and electricity pricing.

Can businesses use BESS with solar panels?

Yes. A battery energy storage system can store suitable surplus electricity generated by solar panels and make that energy available later. This can help businesses use more of their renewable generation according to their operating requirements.

How long can a battery energy storage system provide backup power?

Backup duration depends on the battery's usable energy capacity and the electrical load being supplied. A larger battery can generally store more energy, while higher electrical loads consume the stored energy more quickly. Required backup duration should therefore be considered when sizing the system.

Is a battery energy storage system suitable for small businesses?

It can be, depending on the business's electricity consumption, operating profile, energy costs, backup requirements, and available installation space. A BESS should be assessed based on the specific energy requirements and expected applications rather than business size alone.

What factors should businesses consider before installing BESS?

Important factors include electricity demand, load profile, required backup duration, renewable energy generation, battery capacity and power output, available space, electrical infrastructure, system controls, maintenance requirements, and lifecycle costs.

Can BESS provide benefits beyond backup power?

Yes. Depending on its configuration, a battery energy storage system can also support peak demand management, solar energy storage, load shifting, and other energy-management applications. This multi-purpose capability is one reason businesses may consider BESS as part of a broader energy strategy.