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Understanding BICS and Commercial Solar PV for UK Manufacturers

BICS could lower electricity costs for eligible UK manufacturers from 2027, changing some of the assumptions used to assess renewable energy investments. We look at the relationship between BICS and commercial Solar PV, battery storage and the long-term business case for generating electricity on-site.

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Commercial Battery Storage: Costs, Savings and Key Considerations

3 min read

Updated on 8 September 2026
battery

Battery Energy Storage Systems (BESS) are now a key part of many commercial energy strategies.

As businesses invest in solar PV and move towards electrifying their operations, battery storage offers a practical way to further cut electricity costs, strengthen resilience and get more value from the energy generated on-site.

Why businesses are investing in battery storage

Battery storage gives businesses the flexibility to store electricity and use it when it makes the most sense.

For many organisations, this means storing surplus solar energy during the day and using it later when demand is still high but solar output has dropped. Some businesses use batteries to manage peak demand, support EV charging or add an extra layer of resilience during power outages.

These benefits help lower electricity costs and ensure you get the most from your existing energy assets.

Every site has a different business case

There is no standard battery solution that works for every business. The financial return depends on several factors, such as battery storage cost, your electricity demand, tariff structure, operating hours, existing solar generation and any future plans like fleet electrification or expanding production.

For example, a warehouse with high evening demand will need a different approach to a manufacturing site running 24/7 or an office building that mainly uses electricity during the day.

The first step is to understand how your site uses electricity, so you can design a system that actually fits your needs.

Battery storage costs: Looking beyond simple payback

Battery storage is often talked about in terms of electricity arbitrage: storing electricity when prices are low and using it when prices go up. While this can contribute to savings, it should rarely be the only reason for investing.

A solid business case looks at all the areas where batteries add value. Cutting imported electricity, lowering peak demand, making better use of your solar, supporting critical operations and planning for future demand all play a part in long-term return on investment.

Looking at the complete picture provides a more realistic assessment of battery storage cost ROI and project performance.

Software plays an important role

Modern battery systems depend just as much on smart software as on the batteries themselves.

Control systems manage when to charge, when to discharge and how the battery works with your solar PV, EV chargers and other electrical loads. Good optimisation means you get more value from your system over its lifetime.

That’s why battery capacity alone shouldn’t be the main factor when comparing different solutions.

Planning for long-term performance

Battery projects are a long-term investment for your business. Alongside the expected savings, it’s important to look at battery storage costs, warranties, how the batteries will degrade over time, future electricity demand and how your operational needs might change.

A well-designed system will keep delivering value as your business grows, not just meet today’s needs.

Building the right energy strategy

Battery storage works best when it’s part of a wider energy strategy for your business.

Bringing together solar PV, battery storage, smart controls and energy monitoring gives you more control over your electricity use, improves resilience and supports future electrification plans.

Every site is different, so a detailed feasibility study is always a good starting point. By understanding how your business uses energy, you can make sure any battery investment is tailored to deliver real commercial value, not just based on general assumptions.

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