Battery storage is a way to optimize energy by storing power now to use later. PG&E is here to provide helpful information on whether battery storage is right for you, answer your questions about financing and potential bill savings, and help you understand the steps to get started.
Some commercial customers could see bill savings or short-term backup power benefits from battery storage. Review the information below to determine if batteries are right for you.
See Getting Started (below) and talk to a contractor about if a battery may help you save.
We recommend talking with your contractor about programming the battery to meet your energy goal.
Choosing the right contractor to install your system and connect you to the PG&E grid is an important step. Use the following guidelines when evaluating your vendor options:
Once you decide that a battery is right for your business, you have the option to either buy or lease your battery system. Lease terms vary from 3-15 years. Be sure to fully investigate all options before selecting financing. To understand the benefits and risks of each option, explore financing options for solar and renewable energy systems. Please note: If you are planning to use your battery for backup power keep in mind PG&E customers experience, on average, less than two hours of downtime per year. Do the math ahead of time to see if it’s the right investment for you.
The PG&E Self-Generation Incentive Program (SGIP) program provides financial incentives for commercial customers installing qualifying battery storage for more than just backup use. Consider the following to help determine if and how incentives could work for you:
For more information on available funding, incentive rates and program rules, review the Self-Generation Incentive Program.
Owning battery storage enables business customers to participate in PG&E’s Demand Response programs. Customers can receive compensation from PG&E for reducing the on-site energy usage when overall demand for electricity is highest (known as peak demand “events”). By agreeing to charge the battery system prior to these events and discharge during these events, you could financially benefit and enhance system reliability. For more information on program eligibility, rules, and deadlines, review our Demand Response program options.
Battery storage systems are technically capable of operating independently of a solar photovoltaic (PV) system and can provide savings on their own (depending on the customer’s energy usage and rate schedule).
Solar PV enables customers with battery storage to store excess energy produced by their solar system during the day, and then use this stored energy instead of grid energy at other times. This helps maximize the use of solar generation for on-site energy needs and reduces drawing from the grid when energy tends to be the most expensive. Most battery management software automatically determines the amount of excess solar energy to export to the grid or to store in the battery. Battery customers on the Time-of-Use Rate could save by reducing the amount of energy used from the grid when it’s the most expensive and carbon-intensive. PG&E recommends you review the expected return and payback on any of these investments prior to investing. Learn about the Time-of-Use Rate.
Battery Storage | Generator | |
---|---|---|
Ability to power in the case of multi-day power outages
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Most standard storage systems only discharge for several hours without needing to be charded. |
Portable generator could be used for multiple days if there is sufficient fuel. |
Cost
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Several thousand dollars depending on size of battery, plus costs for an inverter and installation. Upfront cost is larger than a generator. Upfront cost will differ based on expectation of how many hours of backup power it can provide. |
Costs from a thousand to several thousand dollars depending on quality and whether it’s portable or permanent. If permanent, expect to pay a modest installation fee. Have to pay for fuel over time as needed. Upfront costs do not differ based on whether you will need to generate for a few hours or a few days. |
Environmental impact
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If charged with solar generation, battery use is non-emitting and therefore environmentally friendly. However, the impact of energy and materials that went into making the battery and the impact of dealing with materials after the battery is no longer in use is harder to quantify. |
Runs on various types of fuel or natural gas and produces harmful emissions. |
Battery storage systems are generally very safe. The primary safety concern is the potential for overheating which your contractor should address through several safety measures, including:
Customers should confirm with prospective battery storage vendors that all included hardware (not just the battery) meets the safety criteria of reliable third-parties. UL (Underwriters Laboratories) and the National Electrical Manufacturers Association set safety standards for most battery storage components.
Most battery storage systems use Lithium Ion (Li-Ion) batteries. Excluding special circumstances, the battery (without replacement) and all other included components are designed to last at least 10 years and should be warrantied for 10 years. Battery performance does decline moderately with time, ask your contractor about the typical battery life for your chosen system.
It’s important to discuss the maintenance of the battery with your contractor before purchasing. Maintenance and repair is typically included in the purchase or lease contract.
The management software included with each battery storage system allows for round-the-clock remote monitoring and adjustment of performance. In the case of hardware failure, some battery companies receive automatic notification, and can send field services out to addresses any malfunctions.
System size is largely dependent on the customer’s energy needs. Almost every battery storage company offers a scalable technology, and designs products according to individual customer’s energy use and property needs. For the typical property, a garage or backroom will provide sufficient space to install the battery. Your contractor can help you select appropriate placement for the battery storage unit.
Most battery storage suppliers offer both indoor and outdoor options to suit individual customer need. If installing an outdoor system, ensure that the battery storage enclosure is UL (Underwriters Laboratories)-certified or National Electrical Manufacturers Association-rated to meet applicable safety standards.
Your contractor will handle the installation and interconnection process. It’s a good idea to talk through the steps, costs and expectations with your contractor ahead of time. Learn more about interconnection and timelines.
Learn more about the interconnection process for multiple technologies, such as PV and storage.
Learn more about the interconnection process for Energy Storage.
B1-STORE is a rate for small businesses that offers a "steeper" rate structure, allowing storage customers to discharge when energy is more expensive and charge at a discount.