Discover how Battery Energy Storage Systems (BESS) can dramatically reduce your facility's energy expenses through strategic demand management, peak shaving, and renewable energy optimization.
Battery Energy Storage Systems (BESS) are more than emergency backup solutions for Midwest businesses. They give commercial, manufacturing, and agricultural operations greater control over when and how they use electricity, helping businesses move from simply consuming energy to strategically managing it. BESS can work alongside the grid, on-site solar, or a combination of both to help businesses optimize their energy use and potentially reduce operating costs.
Three key strategies can help businesses maximize the value of battery storage. Energy arbitrage allows businesses to store electricity when rates are lower and use it when rates are higher. Self-consumption helps businesses store excess solar generation and use that energy later, increasing on-site solar utilization. Demand charge mitigation allows batteries to discharge during periods of peak demand, helping reduce costly demand charges. Together, these capabilities make BESS a powerful tool for businesses looking to take greater control of their energy costs.
Energy arbitrage allows businesses to take advantage of time-based electricity pricing by storing energy when rates are lower and using it when rates increase. A properly configured BESS can charge during off-peak periods and discharge during peak pricing periods, allowing businesses to strategically manage when they purchase electricity rather than paying higher rates when demand is greatest.
For businesses with consistent daytime operations, such as manufacturing, food processing, and logistics facilities, this strategy can help reduce overall electricity costs without changing production schedules or daily operations. The battery essentially acts as a price-management tool, shifting energy use away from expensive peak periods and helping businesses make the most of lower-cost electricity.
Self-consumption allows businesses to get more value from their on-site solar by storing excess energy for when it’s needed most. Solar systems typically produce the most electricity during midday, while a facility’s energy needs may continue into the evening or vary throughout the day. Without battery storage, excess solar generation may be sent back to the grid. A BESS can capture that excess energy and store it for later use, helping businesses rely more on the renewable energy their solar system produces.=
By increasing on-site solar utilization, battery storage can help reduce the amount of electricity a business needs to purchase from the utility. Stored solar energy can be used when solar production drops, such as in the evening or during periods of lower generation. For businesses with existing or planned commercial solar, adding BESS provides greater control over when that energy is used—helping align solar production with actual facility demand and maximize the value of the overall energy system.
Demand charge mitigation focuses on reducing the peak power demand recorded by a commercial or industrial facility. Unlike energy charges, which are based on total electricity consumption, demand charges are based on the facility’s highest rate of electricity use during a billing period. A short-term spike from running multiple pieces of equipment, increasing production, or heavy HVAC use can significantly impact a monthly utility bill. For many Midwest businesses, managing these peaks can be an important opportunity to reduce energy costs.
A BESS can help by automatically discharging stored energy when facility demand approaches a predetermined peak, reducing the amount of power drawn from the grid. This peak shaving strategy can lower the facility’s recorded demand without requiring changes to production schedules or operations. For businesses with variable energy loads or frequent demand spikes, battery storage can provide a practical way to manage peak demand and potentially achieve consistent monthly savings.'
The most effective BESS systems combine multiple strategies based on a facility’s utility rates, operations, and energy profile. A business with on-site solar, for example, can use battery storage to increase solar self-consumption, reduce peak demand during production periods, and shift energy use when electricity rates are higher. By addressing multiple areas of energy costs, businesses can maximize the value of their battery investment and create a more efficient energy management strategy.
The right BESS solution depends on proper system sizing, intelligent controls, and integration with existing electrical infrastructure. Advanced energy management systems can monitor energy consumption, utility rates, solar production, and battery capacity to automatically optimize how and when energy is stored and used. For Midwest businesses, a properly designed BESS can provide greater control over energy costs while supporting existing solar systems and helping facilities operate more efficiently.