Solar energy around the clock - highlighting the potential of battery storage for commerce and industry

2024 was a record year for the expansion of battery storage systems in Germany. According to the German Solar Industry Association, almost 600,000 new battery storage systems were put into operation in 2024. This means that both the number and capacity of installed electricity storage systems increased by almost 50% within one year. The installed capacity amounted to around 19 gigawatt hours at the turn of the year. (1)

Until now, the debate on the expansion of storage systems has mainly focused on private households and stand-alone solutions that are directly connected to the electricity grid. The potential of battery storage for commercial and industrial companies has long gone unnoticed, but is considerable, especially in combination with a PV system, and offers great opportunities for companies.

You will learn why now is the right time to opt for a storage solution and which parameters have changed for the commercial sector. We will also provide an overview of the various use cases and opportunities that arise for the commercial sector.

For a long time, storage solutions were considered uneconomical for commerce and industry due to their high costs and long amortization periods. Lithium-ion battery cells, which represent a significant cost factor, have become around 89% cheaper since 2010 due to the scaling of e-mobility. (2) However, it is not only the acquisition costs themselves that have changed, but also the possible applications of battery storage systems.

For a long time, battery storage systems were primarily used for optimizing self-consumption and capping peak loads. What does that actually mean?

Self-consumption optimization

If the business has a PV system, the battery is charged when the PV system produces surplus energy. The stored energy is then used at a later time.

Peak shaving

Peak shaving is about capping power peaks in electricity consumption. A limit value is defined for the power. As soon as this is reached, the battery storage system takes over, resulting in lower peak loads in grid usage. This allows commercial enterprises to significantly reduce the grid charges for their company, as these, among other things, are calculated based on the level of the maximum peak load.

Use of dynamic electricity tariffs

Battery storage systems in conjunction with an intelligent energy management system are able to exploit the volatility of exchange electricity prices and purchase and store electricity when prices are low on the exchange. This energy is then consumed at a later point in time as required. This enables companies to significantly optimize their electricity procurement. A dynamic electricity tariff provides the basis for using this option.

Participation in energy trading

Another use case that has not been widely adopted to date is the participation in energy trading. Arbitrage trading can be carried out with a so-called front-of-the-meter battery. This means that electricity is purchased on the exchange when prices are low and sold again at a profit when prices rise. Similar to share trading, companies benefit from the profits generated. This battery is used exclusively for energy trading and not actively for the company's power supply.

However, it requires a great deal of expertise for successful, economic execution. As commercial and industrial companies do not necessarily have the necessary internal resources, innovative operating concepts offer the solution.

ENVIRIA offers a model in which companies provide an area on their premises for the installation of a battery. ENVIRIA takes over the installation and operation of the battery, including the management of all transactions - without any effort or risk for the company. In return, companies receive regular rental payments as a profit share of the turnover generated from energy trading.

In the past, individual use cases were often applied in isolation, which led to long amortization periods and low cost-effectiveness of the battery storage systems. Modern battery storage systems enable so-called multi-use case concepts, i.e. the simultaneous combination of several of the use cases described.

A behind-the-meter battery is used to optimize self-consumption, procurement and peak load capping. This in turn is combined with a front-of-the-meter battery that maps energy trading. This dual-battery solution maximizes the potential uses and cost-effectiveness of the storage system. The result: up to 50% reduction in electricity costs per year. The reduction results from the combination of income from energy trading and the savings from optimizing self-consumption, peak shaving and dynamic electricity tariffs.

New, low-threshold financing models also create further incentives. Instead of investing in storage technology themselves, companies have the option of renting out their space for the installation of a battery storage system, benefiting from attractive rental income and in turn purchasing the electricity at low cost via a power purchase agreement (PPA).

The combination with an intelligent energy management system is crucial for the successful use of battery storage. An energy management system (EMS) records and controls the entire energy flow in real time. Like a brain, it orchestrates the individual components of the energy supply and controls the energy flows. These can be, for example, the photovoltaic system, the battery storage system, the charging infrastructure and the consumers in the building.

At the same time, the EMS forms the interface to the electricity grid and energy trading. Based on continuous data monitoring, the EMS optimizes self-consumption and creates the schedule for purchasing electricity. The full potential of a battery storage system can only be exploited in conjunction with an EMS.

With regard to battery storage systems, a number of factors have changed in recent years that enable their economical use in commerce and industry. In addition to the reduced acquisition costs of the storage systems, these include above all the new fields of application that can be combined with each other as multi-use cases and new, low-threshold usage models without investment costs.

In conclusion, it can be said that battery storage systems in commerce and industry are no longer a marginal product, but an essential component of the energy transition and energy management in companies. The combination of PV system, battery storage and energy trading can reduce annual electricity costs by up to 50 %.