If we’re running a business in Australia right now, we’ve probably noticed that electricity prices keep creeping up. On top of that, the energy grid is under more pressure than ever, and the push toward renewable energy isn’t just talk anymore — it’s happening right now. Maybe we’ve already installed solar panels, or we’re thinking about it. But here’s the thing: solar alone isn’t always enough. The actual game-changer is putting batteries in our energy system.
An example would be a winery in the Barossa Valley. They have loads of solar power during the day but still incur expensive electricity at night when the operation goes on. Bringing batteries in allows them to capture that excess and utilize it after dark, greatly reducing their bill.
Batteries allow us to bank excess solar energy we produce during the day so we can use it on days when the sun’s not out or during periods of high electricity prices. Batteries also provide us with backup power during power outages. So, it’s not about being green anymore — it’s about managing our energy consumption and reducing our costs in a clever way that benefits our businesses.
How Batteries are Financially Sound
We may be asking ourselves why companies are looking to batteries now. The easy answer is economics and convenience. Feed-in tariffs — the checks we receive for exporting solar power back to the grid — have fallen. Therefore, rather than selling our surplus energy for a mere few cents per kilowatt-hour, it is smarter to retain it for us and utilize it when grid power becomes costly. Batteries provide us the means to levelize our energy bills, eliminate those high peak demand charges, and maximize the solar energy we generate.
For example, a small workshop making machines in Melbourne was experiencing steep peak demand charges since their machines operated primarily during the day. They installed a battery, charged it overnight when electricity was low and discharged during peak times. Outcome? A significant cut in their energy bill and improved cost control.
Picking the Right Battery for Our Business
When it comes to choosing batteries, lithium-ion is the go-to technology for most businesses. They pack a lot of energy into a small space, charge and discharge quickly, and last for years with minimal maintenance. We’ll see these batteries used in all kinds of places—from warehouses and factories to schools and retail shops. There are still other alternatives available, such as flow batteries for long-term storage or lead-acid batteries for straightforward backup power, but lithium-ion is typically the best for day-to-day commercial applications.
In Queensland, certain larger agricultural businesses have been testing out flow batteries as they have the capacity to store energy for longer periods, which suits their irregular energy consumption patterns across seasons.
What Batteries Can Do For Us
So what is it that batteries can do for our businesses? They work first by lowering our electricity bills. The majority of companies don’t only pay for the amount of electricity that they consume, but also for when they consume it. Electricity is more expensive during peak hours, and if we can prevent using the grid during those times, we save a lot. Batteries enable us to charge up when energy is low cost — perhaps in the middle of the day or at night — and then utilize the stored energy when prices spike. This type of load shifting can be a significant benefit to our bottom line without our having to modify the way our business functions.
One Sydney café discovered that by installing batteries, they were able to skip peak charges that were expensive during extremely hot summer afternoons when air conditioning was cranked up full speed. Utilizing stored power at such times kept their bills under control.
Batteries also make our solar system more valuable by increasing self-consumption. Without storage, any surplus solar power simply feeds back into the grid, usually at a low rate. But with a battery, we store that energy on site and use it later — when our solar panels aren’t generating but our company still needs power. That means we’re getting more bang for our buck from our solar investment.
Keeping Our Business Going Regardless
Another huge benefit is the peace of mind. Power failures can be expensive and inconvenient, particularly if we have refrigeration, automation, or sensitive machinery running. A battery system keeps us going when the power is out, saving us from lost business and lost time. Batteries respond immediately, so we never even know the power has failed — it’s like having our own personal backup system.
One refrigerated logistics firm in Perth prevented significant losses due to battery backup during an unplanned blackout. Its cold storage continued to operate, preventing thousands in rotting inventory.
Demonstrating We Care About Sustainability
And let’s not forget the environmental side. More customers and stakeholders expect businesses to be greener and more sustainable. Having battery storage paired with solar is a visible way to show we’re serious about reducing our emissions and supporting renewable energy. It also puts us in a great position to meet any future carbon reporting or compliance requirements.
Local governments, such as those in regional Victoria, are paving the way by installing battery-backed solar at libraries and community centres, showing true dedication to sustainability.
Who’s Using Batteries and How
We don’t need to be a specific business model to gain advantage from batteries. Retail stores, restaurants, factories, farms — they’re all on board. Some use batteries to prevent blackouts and keep their businesses open. Others level out their energy consumption to prevent network charges. Even schools, hospitals, and councils are investing in battery-supported solar to cut costs and enhance energy resilience.
What We Need to Know Before We Install
Prior to us getting started, it’s helpful to know how we use energy. Examining the times of the day our businesses consume the most electricity and how much assists in determining the appropriate battery size — one that responds well to our energy needs without over- or under-spending. It also assists in determining whether we want a system primarily for daily usage, backup, or long-duration storage.
It comes down to our own business requirements. Although lithium-ion is generally the best choice, considerations of location temperature, space limitations, and safety issues could lead us towards other technologies. Certain businesses in locations prone to fires prefer zinc-bromine or flow batteries due to their safety profiles. And don’t forget, our battery system can also have smart controls that determine when to charge and discharge, depending on solar production, energy prices, and grid conditions. Some even allow us to earn money by being part of virtual power plants, where we are paid for balancing the grid.
How to Manage the Costs
Of course, there’s also the cost to factor in. Commercial battery systems aren’t inexpensive on the upfront, but there are factors to make it more manageable. We can potentially write off tax deductions using the instant asset write-off, and some states have grants or loans to help fund battery installations. In addition, some companies have leasing or energy-as-a-service options, so we don’t have to pay everything at once — rather, we pay over time from the savings generated by our battery.
For instance, a Tasmanian region dairy farm used a government grant and a leasing model to fit batteries without an initial capital outlay, with instant cost savings on their power bill.
What’s Coming Next for Business Batteries
Looking ahead, batteries will only become more important. With electric vehicles becoming common in business fleets, batteries will help manage the extra load and even feed energy back into our buildings. For sites with limited grid connections, batteries can support growth without expensive network upgrades. As the energy market evolves, having a battery means we’ll be ready to take advantage of new opportunities like demand response and dynamic pricing.