Battery storage for your business

Is battery storage right for your business?

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.

Understand the potential benefits

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.

Maximize your solar or renewable investment: If you have solar photovoltaic (PV), a battery may help optimize carbon reduction impacts and energy bill savings.
Demand charge and energy savings: Battery storage may reduce monthly demand charges for business customers by discharging the battery when you are utilizing the most energy. Also, if you are on a time-of-use rate, you can save money by charging at a time when energy is cheaper, for example in the morning, and discharging when it is more expensive, during the early evening peak period. Talk to your contractor about what you can expect to save. Learn about the Time-of-Use Rate.
Backup power: A battery storage system is capable of providing emergency power to a property for several hours. The duration of the power supply is dependent on overall energy use, battery size and listed capacity on the battery. PLEASE NOTE: Incentives are not available for backup-only purposes.

See Getting Started (below) and talk to a contractor about if a battery may help you save.

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Battery technology performs two main functions:

Charging: from either your private rooftop solar system or from the PG&E grid to be stored and used at a later time.
Discharging: using the energy stored by the battery to either power your business or return back to the PG&E grid.

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.

Smart Management Software: This software is included with every battery to automate the charging and discharging process and monitor system performance to help product safety and reliability. Mobile apps are available for many batteries to help customers monitor energy. The software can be programmed to automatically charge the battery when energy is cheaper and discharge when it’s more expensive.
Inverter: Inverters are necessary to convert stored energy from your battery to power your business or send power back to the PG&E grid. Inverter installation is included when the battery is installed by your contractor.
Battery Maintenance Energy: Batteries use a small amount of energy to stay in an operational state whether or not they are being discharged. This may have a small impact on your monthly energy usage.

Determine your primary energy goal

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

Maximize your solar or renewable investment.
Energy cost savings through Demand Charge reduction and reduction in peak use.
Have backup power for your property, but also discharge energy so you are eligible for PG&E incentives.

Find the right contractor

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:

Get at least 3 bids from different storage providers.

Please work with a qualified electrician or contractor to ensure your storage is installed safely and legally. See this guide for more information.

Information to consider when evaluating bids:

System cost
Battery capacity needed for your property (measured in kWh)
Warranty (10+ years is advised)
Ensure contractor’s license is current. Check with the California State License Board.
Look up the contractor on the Better Business Bureau for potential red flags.

Questions to ask your contractor:

Am I on a rate schedule with demand charges? If so, how much savings should I expect on demand charges?
How much should I expect to save from shifting my peak energy usage? (An equation for savings should take into account a typical rate increase of less than 3% per year, if the model has a higher rate increase, it is overestimating your savings.)
If considering leasing, who is responsible for the equipment at the end of the lease commitment?
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 field services out to address the issue?
How can I monitor usage and performance?

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

What are the benefits of pairing my battery with solar?

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.

What are the pros and cons of battery storage vs. a portable generator for backup power purposes?

	Battery Storage	Generator
Ability to power in the case of multi-day power outages	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	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	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.

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 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.

How long will the battery last?

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.

How is maintenance and repair handled?

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.

What are the sizes and dimensions?

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.

Can it be installed either indoors or outdoors?

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.

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

Download the Interconnection Timelines (PDF, 154 KB)

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

What is the storage rate B1-STORE?

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.

Learn about the B1 Store (B1-ST) Rate

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