C&I Energy Management Storage Systems Explained

Commercial and industrial facilities have never faced more volatility in electrical costs, or more pressure to keep the power on. Having a strategy for managing your utility bill is no longer just checking the mail each month. Battery storage assets allow commercial building owners and facility managers to have complete control over when, how, and how much it costs them to draw power from the grid.

Don’t think that installing batteries only provides power backup during grid outages. Commercial batteries, when deployed correctly, can also integrate with your solar PV array, electric vehicle charging stations, diesel generators, and building controls. The intelligence behind these systems is software that monitors utility rates, facility demand spikes, and on-site generation to make the best decisions with every kilowatt-hour.

So how does your storage system know when to charge, discharge, or hold onto its stored power? Let’s dive in.

A commercial and industrial (C&I) energy management storage system stores electrical energy and intelligently releases it to reduce grid power costs, stabilize power, or power a facility microgrid.

How Does a C&I Energy Management Storage System Work?

Commercial battery storage combines rugged battery hardware and advanced software automation that operates behind the meter to control your facility’s energy usage.

What does C&I stand for? Commercial and industrial. These assets are used by businesses of all types, including distribution centers, manufacturing facilities, universities, hospitals, and more. Your commercial battery storage solution will include hardware and software components. On the hardware side, there is the battery energy storage system (BESS). The brains behind the decision-making process is called an energy management system (EMS), specifically designed for C&I applications.

These systems are installed behind the utility meter and connected directly to your facility’s load and existing on-site generation (if applicable). The software is analyzing your facility’s load profile and utility rates that change throughout the day. When utility costs are at their highest or if your facility experiences a demand spike, the system will dispatch power from the batteries to proactively reduce the impact of hefty utility charges.

How Does an Energy Management System Work?

Your energy management system (EMS) for commercial and industrial applications works tirelessly, analyzing your site conditions and making financial decisions on how to operate your physical battery assets. Using sensors, your EMS monitors your building loads, time-of-use electrical rates, and controls the power conversion device. The power conversion device we are referring to is called a power conversion system (PCS). The EMS will decide if it should consume power from the grid, hold the electricity stored in the batteries, or supply power from the batteries to the facility.

The operational process looks something like this:

• Collect Data – The software pulls real-time data from your utility meter, building management system, solar inverter, and battery sensors.

• Analyze Data – Compare site conditions to current utility rates. This includes time-of-use rates, demand charges if they apply, and your batteries’ state-of-charge.

• Control Power – Notify the PCS to convert power (either draw from the grid or supply to the grid) by converting DC battery power to AC power that can be used by your facility.

• Monitor & Optimize – Continue to monitor power being drawn by the facility and make micro adjustments to the power conversion device every millisecond to keep the system in balance.

What Makes Up a Commercial Energy Storage System?

As mentioned earlier, commercial energy storage systems use both hardware and software components. We will go into the specifics of what hardware you’ll need on-site below, but commercial storage also includes a variety of software that’s monitoring and controlling your entire system.

Commercial Energy Storage System Components

Hardware	Primary Purpose	Responsibility
Battery Energy Storage System (BESS)	Store Electrical Energy	Made up of battery cells that store electricity when charging and supply power when discharging
Battery Management System (BMS)	Battery Monitoring System	Monitors battery cell voltages, current, temperature, and more to prevent unsafe operating conditions
Power Conversion System (PCS)	Power Inverter	Converts DC electricity stored in the batteries to AC power for your facility and vice versa
Energy Management System (EMS)	Optimization Software	Runs algorithms that decide when your battery should charge or discharge
Thermal Management System	Temperature Regulation	Cools batteries either through liquid cooling technology or HVAC units
Safety & Protection Equipment	Facility Protection	Commercial battery storage systems have fire suppression, isolation switches, and many other protective safety features

What Can You Do with Commercial Batteries?

Commercial batteries can do many things to save your business money and prepare for the future. Every system is different based on your goals, but here are some common ways businesses use industrial energy storage.

Avoid Demand Charges

One of the best ways C&I storage can save you money is by avoiding demand charges. Demand charges typically make up 30% to 70% of a commercial electricity bill, according to the National Renewable Energy Laboratory — for some large C&I customers, they’re the single largest line item. They’re calculated by finding the peak usage period during your billing cycle, usually measured in a 15- or 30-minute window depending on your utility. Our battery systems can detect when these peaks occur, which are typically caused by heavy equipment starting up or your HVAC system kicking on, and instantly supply power to reduce that spike.

Manage Time-Of-Use Rates

Utility companies raise and lower rates throughout the day. When more consumers are drawing power from the grid, rates are at their highest. Time-of-use rates are usually updated daily and provided to you by your utility company. An energy management system can automatically charge your batteries when utilities are cheap and discharge when costs are high.

Store Solar Energy

Did you know that every time your solar panels produce more electricity than your facility is using, you lose that extra energy? It gets sent back to the grid, and depending on your utility’s net metering policy, you may only receive a partial credit for it. By pairing your solar array with a commercial battery storage system, you can store solar energy when the sun is shining and use it when your energy consumption increases or solar generation goes down.

Provide Backup Power

The sun doesn’t always shine and the grid doesn’t always stay up. Every year millions of dollars are lost when power outages occur. By having a C&I battery energy storage system in place, you can keep your facility up and running during an outage. These systems can be configured to automatically detect a power outage and immediately switch your critical circuits over to the batteries.

Charge Electric Vehicles

Maybe your business does not have electric vehicles (EVs) currently, but you are looking into adding them in the near future. Installing large chargers that can power multiple vehicles at once could exceed your current electrical service capacity. By installing a commercial energy management system with storage, you can buffer the high initial charging demand and avoid costly utility upgrades.

Shift Loads

Another way commercial batteries help businesses reduce their electricity bill is load shifting. Essentially, you can shift your highest energy usage to cheaper tariff windows. This process doesn’t require you to change when your facility operates. An energy storage system with energy management software can automatically shift your loads.

Power a Microgrid

If you aren’t connected to the grid or have limited access, your facility can operate as a microgrid. Commercial battery storage can be the key component to your microgrid, linking your solar arrays, generators, and buildings together to distribute power where needed.

How Do These Systems Work Together?

Here is a simple way to look at how the battery management system (BMS), energy management system (EMS), and power conversion system (PCS) all work together. Below is a diagram we created along with simplified explanations of each system.

Your grid (or solar panels) and PCS will supply power to your battery storage modules. Your facility will pull power from your batteries (via the PCS) to power building loads. Your EMS (or energy management system software) along with your BMS will provide operational commands to the PCS.

Battery Management System (BMS)

• Communicates with the individual batteries inside the battery cabinet.

• Monitors each battery cell’s voltage, current, temperature, and state-of-health.

• Keeps batteries operating within a safe range. If not, it has the ability to shut down the entire system.

Power Conversion System (PCS)

Think of the PCS as the muscle. It does the heavy lifting when converting power from DC (batteries) to AC (facility) and vice versa.

Energy Management System (EMS)

EMS = Brain. The brain is constantly monitoring your building loads, utility rates, and what your operational goals are. It tells the PCS when and how much power should be converted.

Why Should You Manage Your Commercial Facility’s Energy?

There are numerous benefits to integrating a C&I battery storage system into your facility. Installing commercial energy storage is like transforming your energy usage from a fixed cost into a variable cost. Some benefits may be immediate while others may prevent future headaches.

• Lower Monthly Electricity Bills

• Avoid Demand Charges

• Increase Solar Self-Consumption

• Power Backup

• Fleet Electric Vehicle Charging

• Grid Resilience

Are You Ready for C&I Storage?

Ready to see if your facility could save money by installing commercial batteries? Answer the questions below to get a quick read on whether it’s worth exploring further for your building.

• Do you have monthly demand charges over $15/kW?

• Do your energy bills change based on the time of day?

• Do you own sensitive equipment where a momentary outage can cost your business hundreds if not thousands of dollars?

• Do you plan to install EV chargers or increase your solar generation in the next year?

If you answered "yes" to any of the above questions, you might benefit from grid-tied battery storage for your commercial building. If you answered "yes" to two or more, your business is a strong candidate for a custom C&I battery storage solution.

How Big of a Battery Do I Need?

System size is measured in two ways: Power (kilowatts, kW) and Energy (kilowatt-hours, kWh). Power is how much energy the system can deliver at any moment. Think of power as the width of a pipe and how much water can flow through at once. Energy is how long the batteries can supply that power. Going back to the water pipe analogy, energy is how big the water tank is.

Factoring Data into Your Equation

In order to determine how many kW (power) and kWh (energy) you need, your engineer will analyze your utility bill. Looking at just the summary can leave you oblivious to what’s really going on. Engineers typically look at 15-minute interval data for at least a year to make sure you’re sized correctly. They will look for:

• Facility Peak Demand & How Long It Lasts

• Local Utility Rates (demand charges)

• Existing or Future Solar PV

• Electric Vehicle Charging Stations

• Minimum Energy Needs for Backup

• Physical Space Requirements

How Much Does Commercial Battery Storage Cost?

Typing "cost of commercial battery storage" into any search engine will turn up a huge range of results. Don’t fall into the temptation of thinking cost per kWh is the only thing you should look at. There are projects out there that may be cheaper than others but lack the operational abilities you need. Here are some things that can affect the project cost.

• Battery Type & Stored Capacity

• PCS Size (how much power it can move)

• Cooling Method

• Electrical Upgrades

• Site Work

• Permits & Interconnection Fees

• Software Costs

How Do I Select the Right Commercial Batteries?

Picking the right commercial battery storage system seems like a daunting task, but if you know what you’re looking for it can be simple. First you need to know what your goal is for your project. Do you want to reduce your facility’s demand charges? Then we’ll want to look at historical data to make sure you have them and how high they are. Maybe you want to increase your solar self-consumption or add EV chargers. Every project is different, and that’s why we are here to help.

Evaluate Battery Hardware

Safety is one of the biggest priorities when determining which battery technology you should use. Not all batteries are created equal and some just have better safety features than others. Lithium Iron Phosphate batteries have been around for over 20 years and are proven to be safe. At SolarBridge Technology, we design our own PCS and thermal management systems.

Test the Software

Every energy management system is different. You’ll want to look for an EMS that has predictive analytics, automates utility signals, and has a secure connection to the cloud. SolarBridge Technology’s energy management system was designed with the industrial battery storage market in mind.

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We take pride in letting our customers know everything we provide is made in the good ole US of A. Browse our factory page to see where your SolarBridge Technology products are made.

Call SolarBridge Technology | USA Manufacturer

At SolarBridge Technology, we are a family-owned business based out of Dallas, Texas. We offer American Made hardware and software that works together to provide you commercial energy independence. Our mission is to manufacture the highest quality hardware in the industry combined with an intuitive software platform that our customers can count on for years to come. With energy costs constantly increasing, now is the time to act and reduce your electrical costs. Reach out today.