Commercial Solar PPA

Storage · BESS

Commercial Battery Storage With Solar PV

Last updated 15 October 2026 · Figures indicative

Short answer: Commercial batteries store surplus daytime solar for use in the evening peak, cutting the expensive DUoS red-band hours (typically 16:00–19:00 weekdays, varying by DNO) and reducing export of low-value power. They also provide backup for critical loads. Many PPA providers can include storage in the agreement.

How battery storage works with solar

A battery energy storage system (BESS) charges from surplus solar — or cheap off-peak grid power — and discharges when electricity is expensive. A control system decides when to charge and discharge based on your tariff, load and forecast.

Sizing: kWh vs kW

  • Capacity (kWh): how much energy it stores — sized to the surplus solar or the peak period you want to cover.
  • Power (kW): how fast it charges and discharges — sized to the load you want to support.

A typical commercial ratio is 2 hours: for example 100kW / 200kWh.

Savings streams

  • Self-consumption: use surplus solar later instead of exporting it.
  • Peak shaving: cut demand in DUoS red bands and reduce capacity charges.
  • Tariff arbitrage: charge at cheap times, discharge at expensive times.
  • Flexibility services: payments from the DNO or grid for responding to signals, where available.
  • Backup: keep critical loads running during outages (needs specific design).

2026 indicative costs

Indicative installed costs for commercial lithium (LFP) batteries, October 2026 — confirm with quotes
SizeIndicative costTypical use
50–100 kWh£550–£800/kWhSmall sites, solar shifting
100–500 kWh£450–£650/kWhWarehouses, factories, peak shaving
500 kWh–2 MWh+£400–£550/kWhIndustrial, flexibility services

Fully installed behind-the-meter commercial batteries, falling with size; UK installer and asset-finance published ranges. No official government series exists. Overall range £400–£800/kWh, October 2026. Planning ranges, not quotes.

Battery-inclusive PPAs

Some providers fund the battery within the PPA, pricing it into the p/kWh rate or as a separate service fee. Ask how savings from peak shaving are shared. Large-site considerations are covered in industrial solar.

Safety, fire and insurance

Commercial batteries should follow current fire-safety guidance on siting, separation and detection, and your insurer must be told before installation. Outdoor containerised systems are common on larger sites.

DNO notes

A battery that can export counts as generation, so it is included in the G99 application. Export limitation can keep combined solar and battery export within the DNO's limit. Read more on commercial solar panels.

Related reading: our complete guide to solar power purchase agreements, industrial solar and grid connections, commercial solar panels, solar and storage for cold stores and solar installation costs.

Commercial battery storage FAQs

Are batteries worth it for a business?

They can be when you export a lot of solar, have high evening demand or pay high peak-time charges. For sites that already use nearly all their solar during the day, the extra saving is often too small to justify the cost. Model it against your half-hourly data first.

How long do commercial batteries last?

Lithium-ion (LFP) commercial batteries are typically warranted for around 10–15 years or a set number of cycles, retaining roughly 60–80% of capacity at the end. Real life depends on how deeply and often they are cycled and on temperature.

Can batteries be added later?

Yes. Many sites install solar first and add storage once they have real generation data. Choosing a battery-ready (hybrid-capable) inverter and leaving space and cabling routes makes adding storage later cheaper.

Sources

Price ranges for larger systems, running costs, batteries and PPA rates are indicative market ranges from UK installer, funder and market sources; no official series exists above 50kWp.

Would a battery add value at your site?

Describe your operating hours and energy use for personalised guidance.

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