In the UK’s evolving energy landscape, battery storage is emerging as a critical complement to commercial solar. Batteries are no longer optional extras. They have become essential for businesses looking to optimise energy costs, improve resilience and unlock new revenue streams.
What Business Batteries Do and Why They Matter
A commercial battery stores electricity either from on-site solar generation or from the grid when prices are low, and then releases that stored power when it is most valuable. This simple concept has a powerful impact on a business’s energy profile.
Increase Self-Consumption and Reduce Export Losses
Without storage, excess solar power generated during the middle of the day is often exported to the grid at relatively low SEG rates. A battery captures surplus solar and shifts it to later in the day, when onsite demand is higher and prices are typically steeper. This increases the percentage of solar power consumed on site, directly boosting the economic return of the solar investment.
Cut Costs Through Peak Shaving and Load Shifting
Commercial batteries enable strategies such as peak shaving and load shifting. By discharging stored energy during periods of high demand or expensive peak pricing, a business avoids buying costly grid electricity. Although the traditional reform linked to Triad avoidance ended in 2023, many commercial tariffs still include peak charges and time-of-use components that batteries can target for savings.
Enhance Resilience and Backup Power Capabilities
For businesses where continuous operation is essential, such as data centres, manufacturing lines and cold storage facilities, batteries provide backup power. When grid outages occur, batteries can instantaneously supply critical loads, offering a cleaner and quieter alternative to diesel generators.
Unlock Revenue Through Grid Services and Flexibility Markets
One of the most exciting developments in the UK energy system is the emergence of markets that pay for grid flexibility. Battery owners can now earn revenue by providing services such as frequency response, balancing services or participating in the Capacity Market and other ancillary services. These functions reward batteries for stabilising the grid or adjusting supply and demand in real time.
Aggregators make this participation accessible to businesses with smaller systems, pooling their batteries to compete in these markets. Revenue from grid services can meaningfully shorten the payback period on storage systems and make them income-generating assets, not just cost savers.
Strong Uptake of Batteries Across UK Commercial Sites
Battery deployment in the UK has grown rapidly, with total installed capacity increasing over 500 per cent since 2020 and expected to continue expanding through 2026. Behind-the-meter business installations are part of that growth, particularly paired with solar. Estimates suggest around 20 per cent of new commercial solar projects now include storage.
Policy and Market Drivers in the UK
The UK’s energy strategy recognises the importance of storage to complement renewables, with expectations that greater than 20 GW of battery capacity will be needed by 2030 to support the grid as intermittent generation grows. Policy support has streamlined planning for battery systems and allowed larger projects to be approved locally rather than through national infrastructure processes, speeding deployment.
How Batteries Improve ROI on Solar
Pairing storage with solar drives financial returns by:
- Increasing onsite solar utilisation
- Displacing high-cost grid power during demand peaks
- Providing resilience for critical processes
- Generating income via grid services
This multi-layered value stack means batteries are increasingly seen as a strategic business asset, not just a technical add-on.
Future Outlook for UK Businesses
Looking ahead, battery systems will play an even bigger role in commercial energy strategies as grid flexibility markets mature and energy pricing continues to fluctuate. Smart energy management software and integration with demand forecasting will further improve how batteries interact with solar and grid supply. For UK businesses seeking energy cost stability, reduced carbon emissions and operational resilience, batteries are a logical next step.
