How does Battery Energy Storage Systems Work?
How does Battery Energy Storage Systems Work?
Jun 27, 2022

How does Battery Energy Storage Systems Work?

Battery Energy Storage

Battery energy storage systems are rechargeable batteries that store and provide energy from solar panels or the electric grid to a home or company. They can readily execute things that were previously difficult or impossible, such as peak shaving and load shifting, because they feature modern technology that normal batteries lack.

Combining solar panels with batteries isn't a new concept. Early solar pioneers frequently connected their solar arrays to a series of marine deep cycle batteries. This was the only option to consume stored solar energy at night before net metering became widely available. The premise of modern battery energy storage systems is similar, but they are far more sophisticated and powerful. If old battery arrays were like flip phones, new battery energy storage systems are like the latest smartphone - they both do the same thing, but everything else is different.

A built-in inverter and computerized control systems are common features of modern battery energy storage systems. This implies they're all-in-one, turnkey systems that are easy to set up, largely maintenance-free, and don't necessitate any work or experience on the part of the owner. They're also weatherproof and suitable for both humans and animals.

How does it work?

Peak Shaving

Peak shaving is the most important application of energy storage in a business setting. Demand charges can make up anywhere from 30% to 70% of a business's utility bill if they are on a demand charge utility tariff. Solar panels aren't always enough to keep these businesses running. During peak times, however, battery energy storage devices can ensure that no electricity above a predetermined threshold is pulled from the grid.

Emergency Backup

Battery energy storage solutions, like the uninterruptible power supply (UPS) under your desk or in your server room, can keep operations operating during power outages.

Load Shifting

Businesses can change energy usage by charging batteries with solar energy or when power is cheapest, and discharging batteries when electricity is more expensive. This is especially valuable for firms who utilize rural electric cooperatives (RECs) or other utilities that don't offer annualized net metering.


Energy storage allows microgrids to be built in conjunction with renewable energy sources. Battery energy storage systems are economically viable due to their scalability and turnkey simplicity. Microgrids that are self-contained can be employed in big commercial buildings or even entire villages. The island of Ta'u in American Samoa, which went from diesel to solar + storage, is a notable example of this use.

Grid Services

Battery energy storage can provide a variety of benefits to utility-scale clients, including reserve capacity, frequency regulation, and voltage management to the grid.

Battery energy storage technology, we believe, will fundamentally alter how we interact with energy. They'll make solar energy a no-brainer for a lot more people and businesses, provide them more independence from traditional utilities, and give them access to a lot more energy options.


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