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The 7 Benefits of Energy Storage Systems for Commercial and Industrial Businesses

energy storage

The 7 Benefits of Energy Storage Systems for Commercial and Industrial Businesses

Improve Your Business with Energy Storage Systems


We are part of one of the most exciting times in human history: a massive energy revolution that seeks to transform commercial and industrial businesses' operations. The rise in popularity and decreasing costs of energy storage systems enable companies to take more control of their energy usage through energy storage systems.


For many commercial and industrial businesses, investing in energy storage systems offers significant benefits, from decreasing costs to increasing sustainability.


As the leading group of electricians in Santa Clara Valley, Watson’s Charging Stations & Electric is here to answer your questions about energy storage systems. We’ve worked with countless residential, commercial, and industrial properties to make eco-friendly and cost-saving upgrades. We put together a quick guide on the top benefits energy storage systems offer businesses.

What Are Energy Storage Systems?

Energy storage systems capture and store energy to be used at a later time, much like rechargeable batteries. The storage systems come in various forms, but businesses tend to prefer lithium-ion battery systems. These batteries absorb energy from your electrical grid or renewable sources like solar panels or wind turbines. They store the energy for later use, such as during emergencies or when energy prices are at their highest.


With the proper electrical maintenance, lithium-ion battery systems can last up to 20 years, which makes them an affordable option for businesses to join the electrification movement. While an energy storage system requires an upfront capital investment, costs have dropped dramatically in the last few years, making them more affordable and powerful.


Unlike typical backup generators that promise to provide power when needed, energy storage systems do not require fuel. They also do not produce loud operating noise or obnoxious smells associated with burning fuel. Energy storage systems are also much faster to react to a loss of power, meaning you may not even notice a power failure. More importantly, energy storage systems can be customized to meet the unique needs of your facility, regardless of its size. Energy storage is the future of clean, affordable, and reliable power.

The 7 Benefits of Energy Storage Systems for Businesses

  1. Reduced Energy Costs During Peak Hours

By storing energy during off-peak hours when electricity rates are lower, businesses can avoid drawing energy from the grid during peak hours when rates are higher. This practice can reduce energy costs exponentially each year. The stored energy can then be used to power operations or sold back to the utility company.

  1. Increased Resilience During Outages

An energy storage system provides backup power during a grid outage or emergency, which can help critical businesses like hospitals continue operating without interruption. For other companies, it prevents the loss of power to sensitive equipment, servers, security systems, and more. The backup power provides peace of mind and business continuity.

  1. Earn Additional Revenue

Some utilities offer incentives and rebates for businesses that install energy storage systems. Businesses can also earn revenue through demand response programs by allowing the utility to draw from the storage system during peak demand periods. The stored energy can then be sold back to the grid at a higher rate.


Businesses can also use their newfound energy reserves to offer additional services to the community. For example, you could install electric vehicle charging stations on site that employees or members of the public pay to use. Since you are storing energy during non-peak times or via renewable energy sources, the money made from electric vehicle charging is mostly profit for the business.

  1. Improved Sustainability

By storing energy from renewable sources like solar and wind, businesses can use clean energy even when the sun isn’t shining or the wind isn’t blowing. The stored energy reduces the need to draw power from fossil-fuel-burning grids, supporting environmental sustainability goals. Some businesses use this as an opportunity to promote their eco-friendly practices to customers and shareholders. Of course, using renewable energy sources will also lower your company’s utility bills and carbon footprint.

  1. Reduce Maintenance and Repair Costs

With an energy storage system providing backup power, businesses avoid the cost of maintaining and repairing backup generators. Energy storage systems are cheaper and less complicated to maintain than most backup generator systems, and they don’t require expensive, polluting fuels to operate.

  1. Increased Energy Security

Stored energy provides businesses with greater control over their energy usage and security. Rather than solely dependent on the primary power grid for electricity, businesses have independent supply during critical periods. This insulation from the larger grid minimizes vulnerabilities to cyber threats or physical attacks that could impact the entire power network.

  1. Meet Regulations

Some states and utilities have started implementing mandates and regulations around energy storage to support grid optimization and renewable energy goals. Businesses can use various compliance incentives to install energy storage systems that meet these regulations.


Federal programs like the Inflation Reduction Act incentivize companies to take on green initiatives, like installing energy storage systems. Under the IRA, commercial and industrial companies can earn a tax credit of up to 30% of the installation and material costs.


Early adoption of storage technology also helps businesses avoid penalties from future policies. Electrification and green energy initiatives are the future, so getting on board could help companies save thousands of dollars over the coming years.

Call Watson’s for Your Energy Storage Needs

The benefits of energy storage for commercial and industrial businesses are substantial. For companies in Gilroy and the Santa Clara Valley looking to take advantage of these benefits, Watson’s Charging Stations & Electric is here to help.


As the premier energy storage system installation expert, Watson’s Charging Stations & Electric can design and install a customized system to meet your business’ individual needs. Even if you’re just exploring your options, we offer a free consultation to review your necessities and discuss the possibilities. We handle everything from general electrical inspections and maintenance plans to major installations and repairs. Contact us today to schedule your consultation.