Battery storage for your business

What can battery storage do for your business?

If you are looking to manage energy costs, keep the power on during a Public Safety Power Shutoff (PSPS) or other type of outage, and harness the full benefit of your investment in solar energy, a battery storage system may be right for you.

Our battery storage-specific rate schedules and incentives further increase the value of an investment in battery storage for those who qualify. Visit the Self-Generation Incentive Program (SGIP).

Understand the potential benefits

Bill Savings: If your business faces high demand charges, adding an energy storage system will allow you to strategically deploy stored energy to cap your peak demand and save money for your business. A storage specific rate schedule, like the limited Option S rate modifier could increase your savings. There is more information about Option S below. Learn about Option S.
Maximize your solar or renewable investment: Get the most out of your investment in rooftop solar by storing solar power during the day and deploying that clean energy during evening peak cost periods when it will save you the most on your electricity bill – while simultaneously benefitting the grid and the environment.
Backup power: Due to the growing risk of wildfires in California, and the need to shut power off for safety during periods of high fire risk, outages have the potential to last multiple days. Batteries can provide critical backup power for your business’s essential devices and appliances. Your storage provider will help you assess how long a battery or a battery paired with solar, should be expected to last under backup power operation.

Understand the potential incentives

The SGIP provides upfront and performance-based incentives to your business for installing a battery storage system. For details on eligibility, current incentives rates and to find and SGIP approved developer, visit SGIP.

View the Getting Started section below and talk to a contractor to see if a battery storage system may help your business save.

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Battery systems perform two main functions to increase your business’s control over electricity usage:

Charging: A battery storage system will store power generated by your business’s rooftop solar system, if you have one, or from the grid when electricity prices are lower. It can then be used at a later time. If an outage is imminent due to a storm or public safety power shutoff (PSPS), some storage providers are able to send your battery a signal to fully charge before the outage, in preparation for providing backup power.
Discharging: Your business can use the energy stored by your battery to power your business when the price of electricity from the grid is more expensive, at night when your solar system isn’t producing (if your business has solar), or during an outage when you need backup power. Commercial battery systems are often sold in two-hour or four-hour discharging capacities, however, the exact amount of time your battery could be discharged will depend on your business’s needs, budget, and the technology you deploy.

Rooftop solar panels on your property feed your storage batteries. The batteries then send power back to your property or to the PG&E grid.

Battery storage-specific rate modifiers are available that can improve opportunities for bill savings when used with a battery storage system. These rate modifiers are available on a limited basis. Please check the associated webpages for information about these modifiers and enrollment caps.

B1-ST: The B1-ST rate modifier adjusts the small business B1 rate to have a greater difference between peak and off-peak energy prices, increasing bill savings opportunities when you store off-peak energy to use during peak periods. Talk with a storage developer to see if the B1-ST rate modifier is right for your business. Learn more about our B1-ST rates.
Options S: The option S rate modifier adjusts rates B19, B19V and B20 to calculate a portion of your business’s demand charges on a daily, as opposed to monthly, basis. This allows your business to optimize the amount and duration of energy you pull from the grid and reduce your overall demand charges. Consult with your storage provider to see if you would benefit from battery storage couple with the Option S rate modifier. Learn more about our Option S rates.

Determine your primary energy goal

We recommend talking with your contractor about programming the battery to meet your energy goal.

Energy cost savings through Demand Charge reduction and reduction in peak use.
Maximize your solar or renewable investment.
Have backup power for your property.

Find the right contractor

The most important step in investing in a battery storage system is choosing the right contractor to install your system and connect you to the PG&E grid. Use the following guidelines when evaluating your vendor options:

Get multiple bids from different storage providers.

Work with an experienced developer to ensure your storage is installed safely and legally. See this guide for more information (PDF, 200 KB).

Questions to ask your contractor:

How long will the battery storage system be able to offset your energy needs? This is measured in energy (kilowatts) over time (hours), or kilowatt hours (kWh). What is the maximum energy (kW) that can be discharged by the battery? This is important for managing demand charges.
What functionality, automation, and reliability are built into the energy management software?
How long is the warranty (10+ years is advised) and what kind of maintenance is included?
What other projects has the developer completed and how much are their past customers saving?
Am I on a rate schedule with demand charges? If so, how much savings should I expect on demand charges?
If considering leasing, who is responsible for the equipment at the end of the lease commitment? Do you have an option to buy the equipment? Who is responsible for disposal?
What battery safety measures are being taken to prevent the system overheating?
How is maintenance and repair handled? Is this covered in the purchase or lease warranty in the contract?
In the case of hardware failure, does the battery company receive automatic notification? If so, do they send a technician out to address the issue?
How can I monitor usage, performance, and bill savings?

Do the math: savings and financing

The battery's ability to reduce electricity bills depends on several variables:

The energy use of your specific business
Your PG&E rate schedule
Weather

As a general guideline, battery storage customers should expect a 5-20% reduction in their monthly demand charge. Savings should become apparent in the first few months of billing after connection to the PG&E grid.
Talk to your contractor about how much you can expect to save.

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.

Save with incentives and programs

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:

Incentives decline over time, so the amount of your rebate depends on when you install storage.
PLEASE NOTE: Incentive rules prohibit energy storage systems being used solely as backup power.
Program rules require commercial energy storage systems to discharge a minimum 52 times per program year to be eligible for the incentive. Talk with your contractor about programming the battery to comply with these rules.
Talk to your contractor about whether incentives will be routed to you directly or built into the contract.

For more information on available funding, incentive rates and program rules, review the Self-Generation Incentive Program.

Demand Response Programs

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.

Frequently asked questions

Are the battery systems safe? What are the potential risks?

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:

Ensuring an adequate cooling system for the batteries
The inclusion of dividers between individual battery cells
Electronic protection circuits built into the battery pack
Real-time monitoring of system temperature, rate of charging and discharging
Remote shut-off via smart management software

Customers should confirm with prospective battery storage providers 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.

How long will the battery last?

The lifespan of your battery will depend on the type of battery technology and the manner of its application. For a basic, Lithium-Ion (Li Ion) battery, warranties are usually 10 years but vary.

How is maintenance and repair handled?

It’s important to discuss the maintenance of the battery with your developer before purchasing. Maintenance and repair are 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 service personnel out to address any malfunctions.

What are the sizes and dimensions?

System size is largely dependent on the customer’s energy needs and battery technology selected. Almost every battery storage company offers a scalable technology, and designs storage systems according to a business’s energy use and site constraints. Sizes can range from taking up a small area of an existing room, to large battery containers on a rooftop or an unused outside space. Your contractor can help you select appropriate placement for the battery storage unit.

Can it be installed either indoors or outdoors?

Most battery storage suppliers offer both indoor and outdoor options to suit individual customer needs. 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.

What does the interconnection process look like?

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.

Visit Customer interconnection essentials

Learn more about the interconnection process for multiple technologies, such as PV and storage.

Visit the Net Energy Metering Multiple Tariff overview

Learn more about the interconnection process for Energy Storage.

Visit the Energy Storage Interconnection overview

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Battery storage for commercial customers