Commercial and Industrial (C&I) BESS Global Analysis: Business Opportunities in Solar-Storage-EV Charging and Microgrid Scenarios

As the global energy transition accelerates, energy storage technologies are becoming a focal point in the energy industry. Particularly in the integration of solar, EV charging stations, and microgrid systems, energy storage's role is becoming increasingly crucial, shifting from a technological trend to a real business opportunity. In this blog, we will explore the fundamental concepts of battery energy storage system(BESS), its application scenarios, business models, global market reviews and some typical cases. We will also analyze the profitability and risks of energy storage systems, focusing on Solar-BESS-EV Charging and Microgrid scenarios.

1. What is Energy Storage System？

Energy Storage System, in simple terms, refers to the process of storing electrical energy in various devices, to be released when needed. Energy storage systems use different technologies, such as battery energy storage, compressed air storage, and pumped hydro storage, to store excess electricity for later use when demand exceeds supply.

2. Why do we need energy storage?

Balancing Supply and Demand: Modern grids rely heavily on real-time power balance. However, renewable energy sources such as solar and wind generation are intermittent and unpredictable. Energy storage allows excess power to be stored during high production periods and released during peak demand, helping to balance supply and demand differences.

Increasing Energy Efficiency: By storing energy during off-peak times when electricity prices are lower, users can reduce their energy costs by using stored power during peak periods.

Supporting Renewable Energy: Energy storage makes renewable energy more reliable and accessible, providing a steady supply 24 hours a day, and overcoming the challenges of intermittency and instability.

Optimizing Grid Operations: Distributed energy storage systems allow grids to operate more flexibly and reliably, reducing dependence on traditional power generation.

3. Energy Storage Applications

Solar-Storage Integration: Solar power generation follows a day-night cycle. The integration of solar and energy storage systems can provide round-the-clock, stable power. This combination is widely used in residential, commercial, and industrial sectors, where excess power generated during the day is stored for use during nighttime or cloudy periods.

EV Charging Stations and Energy Storage: With the growing adoption of electric vehicles (EVs), EV charging stations are becoming an essential part of urban infrastructure. By integrating energy storage, these stations can store power during off-peak hours and release it during peak periods, reducing grid stress and improving charging station operational efficiency.

Microgrid Systems: A microgrid is a localized energy system capable of autonomous operation, meeting local power demand. In remote or off-grid areas, microgrids combined with energy storage ensure reliable power supply, especially during emergencies or grid failures.

4. Primary Business Models of Energy Storage

Profits from energy storage products are derived from grid frequency regulation, energy trading, storage device sales, leasing services, and cost savings for end-users. These channels provide stable cash flows and attractive returns on investment.

Self-use & Grid Interaction: Customers purchase energy storage systems to support their solar generation or EV charging stations and interact with the grid, participating in electricity market transactions to gain revenue.

Distributed Energy Storage Projects: Commercial and industrial users deploy storage systems on-site to interact with the grid and perform peak-shaving and valley-filling, resulting in economic benefits.

Energy Service Providers: Companies provide storage devices, technology, and operational services, participating in grid frequency regulation and obtaining operational revenue.

Energy Storage Leasing: Some companies adopt an energy storage leasing model, allowing users to rent storage devices as needed, lowering the initial investment cost while still enjoying the benefits of energy storage.

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5. Review of Global Commercial and Industrial Energy Storage Market Performance

China Market: Rapid Growth in Installations and Record Filings, Dominated by Energy Performance Contracting

In 2023, China's commercial and industrial (C&I) energy storage sector saw new installations reaching 4.72 GWh, a year-on-year increase of over 200%. By the end of July 2024, the total recorded capacity for C&I energy storage projects in China stood at 8.96 GW/20.65 GWh, far exceeding the total for the entire year of 2023. However, July saw a month-on-month and year-on-year decline in installations, and the average industrial and commercial electricity procurement prices from January to August also dropped compared to the previous year. The dominant business model, energy performance contracting, places significant importance on owner resources, making intermediaries a critical factor in project implementation. Intense competition among equipment manufacturers has driven prices below 0.6 RMB/Wh.

U.S. Market: Lower Installation Scale, Potential Boost from Interest Rate Cuts

According to Wood Mackenzie, the U.S. added 1.26 GW/3.51 GWh of energy storage capacity in Q1 2024, with C&I storage accounting for only 19.4 MW/44.4 MWh, a 78% year-on-year decline. Industrial electricity prices in the U.S. are lower than commercial and residential prices, making C&I storage less economically attractive compared to residential storage. High interest rates have further suppressed demand. However, the Federal Reserve's recent announcement of interest rate cuts could stimulate growth in the C&I energy storage sector.

European Market: Rapid Growth in C&I Storage, Italy and Germany Leading the Way

According to SolarPower Europe, Europe added 1.6 GWh of C&I storage in 2023, accounting for 9% of the total market. SPE predicts that C&I storage installations will reach 2.7 GWh in 2024 and grow to 19.5 GWh by 2028. The market is primarily concentrated in Germany and Italy, where favorable policies and energy transition goals are driving adoption.

6. Global Energy Storage Typical Cases

China Altana 2.5MW/10MWh Energy Storage System Project

Altana Electrical., is a world-leading supplier of insulating varnishes and resins, which implemented a 2.5MW/10MWh centralized energy storage system provided by Zhuhai Pilot Technologies. The system is designed for?peak shaving, valley filling, and peak-valley arbitrage?to reduce electricity costs. The project utilizes CATL lithium iron phosphate (LFP) batteries and operates on a?two-charge, two-discharge daily strategy?to maximize economic benefits.

The project demonstrates the economic viability of C&I energy storage systems in reducing electricity costs and supporting grid stability, making it a compelling investment for industrial users. While the initial CAPEX is significant, the project's profitability can be enhanced through: Optimized electricity price differentials; Improved system efficiency; Government incentives; Flexible energy management strategies.

Contact us to get key parameters and profitability analysis.

Australia Solar Energy Storage Charging Pilot Project - Cohuna, VIC

Located at a CES-owned gas station in Cohuna, Victoria, integrates a?30 kWp solar PV system,?120 kW DC fast charger, and?two 50 kW/125 kWh energy storage cabinets from Pilot Technology?to enable solar-powered EV charging. The system operates as a microgrid, dynamically managing energy flow between solar generation, storage, and grid supply to ensure continuous EV charging availability.

The solar-storage-EV charging system demonstrates strong profitability, with a lifetime net profit of $188,100.

Key drivers include EV charging revenue, energy cost savings, and efficient microgrid control.

Contact us to get key parameters and profitability analysis.

Mali Hospital Solar Energy Storage Project

The project addresses frequent grid instability at Mali Hospital by deploying a?solar-storage microgrid?across 7 sites. Each site includes:

Solar PV: 52.8 kWp (96 x 550W panels).

Energy Storage: 100 kW/209 kWh.

Solar Inverter: 100 kW.

Grid/Off-Grid Switching: Seamless transition with <1 minute switching time.

This project highlights:

The solar-storage microgrid ensures reliable power supply and significant energy cost savings, with a payback net profit of $277,425.

The project highlights the economic and operational benefits of solar-storage systems in grid-unstable regions.

Contact us to get key parameters and profitability analysis.

7. Pilot Technology's Energy Storage Solutions

Pilot Technology is committed to providing efficient, reliable battery energy storage solutions worldwide. By integrating solar, EV charging stations, and microgrid demands, Pilot Technology offers adaptable storage products that ensure higher system stability and greater economic benefits for the energy grid. Coupled with Independent Station's energy storage solutions and products, Pilot Technology can provide users with flexible energy management while contributing to grid stability.

8. Conclusion

Energy storage is a core technology driving the energy transition, and its role in solar, EV charging, and microgrid scenarios is becoming increasingly critical. The successful case studies of energy storage in various countries provide valuable insights and inspire innovation in business models. With continuous technological advancements and market maturation, energy storage products will play an increasingly vital role in the global energy landscape.