April 11, 2024

Reshaping Your Demand Profile: Battery Storage Peak Shaving and Other Benefits for Commercial and Industrial Properties

Battery storage is an incredibly valuable technology when installed along with renewable and distributed generation projects to create hybrid asset microgrids and generation flexibility for customers. Coupling solar PV installations with battery storage maximizes the value of the solar generation, affording flexibility and control of how that power is used. One of the primary uses of batteries is for peak shaving. We will explore how peak shaving with a battery provides operational and environmental value for customers, along with looking at all the other value-adds batteries bring to energy projects. 

Understanding Peak Shaving

Peak shaving involves reducing or ‘shaving’ the peak energy demand during times when electricity consumption is at its highest. This peak demand often occurs during specific periods of the day or year when energy usage spikes, typically during business hours or extreme weather conditions. By strategically managing energy consumption during these peak periods, businesses can reduce the strain on the grid and avoid costly peak demand charges. Traditionally, peak shaving methods relied on adjusting operational schedules or curtailing energy-intensive activities. However, the integration of battery storage systems has revolutionized this approach, offering greater flexibility and efficiency.

The Role of Battery Storage

Battery storage systems store excess energy during off-peak hours, typically when electricity rates are lower, and release it during peak demand periods when rates are higher. This allows businesses to draw on stored energy instead of relying solely on the grid during times of heightened demand, effectively reducing their peak load and associated costs. When coupled with solar PV, batteries can store power generated by the sun for the same peak-shaving uses.

The benefits of incorporating battery storage extend far beyond mere cost savings from peak shaving. Some key advantages include:

1. Cost Reduction

One of the most significant advantages of peak shaving with battery storage is its potential for substantial cost reduction. By minimizing peak demand and avoiding costly peak demand charges imposed by utility providers, businesses can significantly lower their electricity expenses. Battery storage allows for strategic energy procurement, enabling businesses to capitalize on lower electricity rates during off-peak hours.

2. Enhanced Reliability

Battery storage systems enhance the reliability of energy supply for commercial and industrial properties. In addition to reducing reliance on the grid during peak demand periods, these systems provide backup power in the event of grid outages or disruptions. This added resilience ensures uninterrupted operations, safeguarding against potential revenue losses and operational downtime.

3. Flexibility and Control

Battery storage offers businesses greater flexibility and control over their energy usage patterns, especially when coupled with renewables or other forms of energy generation. By storing excess energy during periods of low demand, businesses can optimize their consumption based on fluctuating energy prices and demand patterns. This flexibility enables proactive energy management strategies, such as demand response and load shifting, further maximizing efficiency and cost-effectiveness.

4. Sustainability and Increased Carbon Reduction

Peak shaving with battery storage aligns with sustainability goals by reducing carbon emissions and promoting renewable energy integration. By minimizing reliance on conventional fossil fuel-based power plants during peak demand periods, businesses can lower their carbon footprint and meet sustainability targets. Additionally, integrating renewable energy sources, such as solar or wind power, with battery storage enhances the sustainability of peak shaving initiatives.

Additional Value: Spotlight on Infrastructure Upgrades for EV Charging installations

Integrating solar photovoltaic (PV) systems with battery storage further enhances peak shaving value for commercial and industrial properties. By coupling solar PV with battery storage, businesses can capture and store excess solar energy during the day, utilizing it to offset peak demand or in the evening when solar generation decreases.

The integration of solar PV, battery storage, and EV charging infrastructure creates a holistic approach to energy management, optimizing energy production, consumption, and storage across multiple domains. By leveraging these interconnected technologies, businesses can maximize their energy independence, reduce operating costs, and bolster their sustainability initiatives. Additionally, the provision of backup generation for EV charging underscores the adaptability and resilience inherent in modern energy solutions, positioning businesses for long-term success in an evolving energy landscape.


Peak shaving with battery storage presents a compelling solution for optimizing energy usage in commercial and industrial properties. By leveraging advanced battery technology, especially when coupled with solar and other technologies to enhance financial value and operational benefits, businesses can achieve cost savings, enhance reliability, and promote environmental sustainability. The flexibility and control afforded by battery storage help businesses to proactively manage their energy consumption and adapt to evolving market dynamics. As the transition towards a more sustainable and efficient energy landscape accelerates, peak shaving with battery storage can serve as a cornerstone strategy for businesses seeking to maximize their operational efficiency while reducing their environmental impact.

Is battery storage a fit at your facility? 

Batteries require nuanced siting, sizing, and permitting for optimized design, and GridMarket is an expert in it all! Interested in maximizing the value of renewables, participating in initiatives like peak shaving, or having critical onsite backup generation?

Let us provide you with your free preliminary assessment to see if batteries make sense and how much money and energy you could save!

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