A Guide to Commercial & Industrial Battery Backup Systems

Facilities such as manufacturing plants, data centers, retail, hospitals, and large office complexes face unique challenges that make reliable power essential. Power outages can lead to significant downtime, equipment damage, and even safety hazards. Ensuring a continuous power supply is crucial for maintaining operations, protecting sensitive equipment, and safeguarding employee and customer well-being. As part of a microgrid system, Battery Energy Storage Systems (BESS) play a crucial role in enhancing power resilience while providing economic benefit through demand response and utility incentive programs.

What Are Commercial & Industrial Battery Backup Systems?

Commercial and industrial battery backup systems are energy storage solutions designed to provide uninterrupted power to facilities during outages. These systems store electrical energy and deliver it when the primary power source fails. They are integral to a facility's power management strategy, ensuring operations can continue smoothly even during grid disruptions.

The Types of Facilities That Benefit from These Systems

• Data Centers: To prevent data loss and maintain server operations.
• Healthcare environments: To ensure critical medical equipment remains operational.
• Manufacturing Facilities: To keep production lines running and avoid costly downtimes.
• Federal and Municipal Government: To maintain essential services.
• Large Retail, Grocery, Distribution: To keep security systems, IT systems, and customer service operations active.

How Do Commercial & Industrial Battery Systems Work?

BESS are designed to seamlessly integrate with a facility's existing power infrastructure. They are connected to the primary power source and monitor its status continuously.

When the primary power source fails, the battery backup system automatically activates. This instant response ensures there is no interruption in the power supply, allowing critical systems to remain operational.

Once activated, the battery system supplies power to connected loads, maintaining operations as long as the battery contains stored energy, typically up to four hours. This capability significantly enhances a facility's resilience against power outages, minimizing the impact of such events.

Components of an Industrial and Commercial Battery Backup System Setup

Implementing an industrial and commercial battery backup system is crucial for ensuring uninterrupted operations, safeguarding sensitive equipment, and enhancing overall energy efficiency. While these systems can vary significantly based on specific needs and capacities, there are several core components commonly found in most setups:

1. Battery Banks: At the heart of any battery backup system are the battery banks, consisting of interconnected batteries that provide stored power during outages. Industrial and commercial systems typically use lead-acid, lithium-ion, or nickel-cadmium batteries due to their reliability, longevity, and capacity. The choice of battery technology is often dictated by the specific requirements of the operation, budget considerations, and environmental factors.
   
   
2. Inverters and Converters: Inverters are essential for converting the direct current (DC) stored in the batteries into alternating current (AC) used by most industrial and commercial equipment. Converters may also be included to transform voltage levels to match the operational needs. High-quality inverters ensure minimal energy loss during conversion, which is critical for maintaining efficiency and supporting peak power demands.
   
   
3. Battery Management System (BMS): The BMS is a sophisticated monitoring system that manages the charging and discharging processes of batteries. It plays a critical role in extending battery life by preventing overcharging, deep discharging, and balancing the load among cells. The BMS can provide real-time data and alerts, helping facility managers optimize performance and perform preventative maintenance.
   
   
4. Transfer Switches: Automatic transfer switches (ATS) are crucial for seamlessly transitioning power from the main grid to the battery backup system. These switches detect disruptions in the primary power source and automatically initiate the backup power flow, ensuring minimal interruption to operations. Manual transfer switches may be used in smaller or less critical setups where manual activation is feasible.
   
   
5. Control and Monitoring Systems: Advanced control systems and monitoring software are employed to oversee the entire battery backup setup. These systems provide a centralized interface for tracking energy usage, battery health, and operational status. They can also enable remote monitoring and management, which is vital for large-scale or distributed sites.
   
   
6. Physical Infrastructure: A robust physical infrastructure, including secure enclosures, climate control, and protective measures, is essential to safeguard the battery system. Temperature and humidity control systems are often necessary to maintain optimal battery performance and extend life, while secure housings protect against physical damage and unauthorized access.
   
   
7. Integration with Renewable Energy Sources: Many industrial and commercial battery backup systems are designed to work in tandem with renewable energy sources such as solar power. Integration of photovoltaic panels or wind turbines can enhance sustainability and reduce operational costs by supplementing stored battery power with clean, renewable energy.

By incorporating these components, industrial and commercial battery backup systems can effectively mitigate the risks associated with power outages, stabilize energy costs, and ensure operational continuity. The specific configuration and scale of each system will vary based on industry needs, site-specific conditions, and technological advancements, underscoring the importance of tailored solutions.

The Microgrid and Battery Energy Storage System Connection

To optimize the benefit of BESS as a battery backup for industrial and commercial facilities, the system should be able to operate automatically in changing grid and energy conditions. Microgrids are localized energy systems that can operate independently or in parallel with the main utility grid. By integrating battery energy storage into a microgrid, facilities gain the ability to store energy from multiple sources, including renewables, and deploy it strategically based on demand, pricing, or grid conditions.

This integration transforms battery backup systems from reactive tools into proactive energy assets. Instead of simply responding to outages, batteries within a microgrid help manage load, balance supply and demand, and optimize energy costs. By embedding battery backup systems into microgrid designs, commercial and industrial facilities unlock a more flexible approach to energy management that supports reliability, efficiency, and long-term cost savings.

Why incorporate BESS?

Incorporating Battery Energy Storage Systems (BESS) into energy infrastructure or business operations offers multiple advantages that cater to the evolving demands of modern energy consumption, sustainability goals, and economic efficiency. As the global focus intensifies on enhancing energy resilience and efficiency, BESS emerges as a pivotal technology for both enterprises and individual consumers.

Economic Benefit to BESS

Battery backup systems within microgrids can unlock real financial value. By integrating energy storage, organizations gain the ability to manage energy use proactively, reduce strain on the grid and optimize operational costs. Beyond operational savings, battery systems can also qualify for a wide range of utility incentive programs. These programs offer financial benefits such as upfront rebates, performance-based payments, and compensation for grid support services. Facilities can earn revenue by participating in demand response, capacity markets, and other utility programs that reward flexible energy deployment and load reduction.

PowerSecure works closely with customers to identify and maximize these opportunities. In combination with our PowerControl Commercial Monitoring, we can help facilities seamlessly deploy stored energy strategically and align usage with business goals and energy pricing structures.

Enhanced Reliability and Resilience

Battery backup with BESS provides a power supply during grid failures or fluctuations, making it indispensable for critical infrastructure and services. By storing surplus energy generated by renewable sources or during low-demand periods, BESS ensures available power even during adverse conditions, such as when the macro grid is entirely out. This capability is particularly crucial in regions susceptible to natural disasters, where extended grid downtimes can have severe consequences.

Load Balancing

Microgrids equipped with BESS can perform load balancing by distributing stored energy during high-demand periods. This helps in mitigating peak load pressures on the macro utility grid. By strategically discharging stored energy, battery systems help in flattening demand curves, leading to enhanced grid stability and reduced energy expenses.

Integration of Renewable Energy Sources

Renewable energy sources, such as solar, are inherently variable and depend heavily on environmental conditions. Battery backups effectively balance this variability by storing excess energy generated during peak production times and supplying it when production is low. This ensures a consistent energy flow, thus promoting a more sustainable energy ecosystem.

Grid Independence and Energy Autonomy

BESS enables microgrids to maintain operational independence from the main grid, granting communities and organizations greater control over their energy use and management. This independence is particularly advantageous in remote or isolated areas where grid repairs often take longer or access to fuel for generators can be challenged. Fostering energy autonomy, microgrids contribute to decentralized energy management and bolster local energy security.

Supporting Electric Vehicle Integration

As electric vehicles (EVs) become more prevalent, microgrids with BESS are well-positioned to support the charging infrastructure necessary for widespread EV adoption. By storing energy during low-demand periods and providing it during EV charging peaks, these systems can facilitate a smoother integration of EVs into existing energy frameworks without overburdening the grid.

The incorporation of BESS in microgrids represents a strategic evolution toward achieving a more resilient, sustainable, and economically viable energy infrastructure. As energy demands grow, battery storage will undoubtedly play a pivotal role in the future landscape of energy management.

The Limitations of Battery Energy Storage Systems

When comparing batteries to other forms of energy generation, it's important to understand that batteries themselves are not energy sources but rather energy storage systems. They store electricity produced by other means and release it when needed. While a BESS represents a transformational stride towards achieving more flexible, reliable, and efficient energy management, they are not devoid of challenges and limitations.

Including:

• Initial costs
• Limited lifespan and degradation based on environmental conditions
• Environmental and resource concerns
• Energy density and space requirements
• Safety concerns

The current deployment of BESS in various sectors reveals a number of constraints that must be navigated to harness its full potential. These challenges depend heavily on battery chemistry, which we will get to next.

Types of batteries commonly used for industrial system backups

When choosing a battery chemistry for commercial and industrial backup, several factors must be considered including cost, lifespan, maintenance requirements, and performance under different conditions.

Here are some common options:

Lead-Acid Batteries

• Strengths: Cost-effective, reliable, and widely used.
• Weaknesses: Shorter lifespan and higher maintenance compared to other options.

Nickel Cadmium Batteries

• Strengths: Durable, good lifespan, and performs well in extreme temperatures.
• Weaknesses: Higher cost and environmental concerns due to toxic components.

Lithium-Ion Batteries

• Strengths: High energy density, good lifespan, and low maintenance.
• Weaknesses: Higher upfront cost but offers better overall performance and efficiency.

Lithium Iron Phosphate Batteries

• Strengths: Thermal stability, long cycle life, lower maintenance costs, and stable Voltage Profile
• Weaknesses: Energy density, voltage ceiling

Nickel-Hydrogen Batteries

• Strengths: Long lifespan, very low maintenance, and performs very well in extreme temperatures.
• Weaknesses: Higher upfront cost but offers excellent overall performance and efficiency.

Meeting The Unique Challenges These Facilities Face

Commercial and industrial facilities are often large and complex, with intricate power needs. They operate around the clock, have high energy demands, and house critical systems that cannot afford interruptions. For instance, a data center's servers need constant power to prevent data loss, while a hospital's life-saving equipment must always be operational. Every facility benefits from emergency lighting. These facilities must be prepared for unexpected power outages caused by severe weather events, natural disasters, equipment failures, or grid instability.

PowerSecure offers a diverse portfolio of battery storage technologies including lead-acid, lithium-ion, and hydrogen-based systems to ensure every microgrid solution is precisely tailored to meet the operational demands of each facility. Our engineering team conducts in-depth assessments to evaluate energy usage patterns, critical load requirements, and budget parameters, delivering a right-sized, future-ready solution.

More than just a backup system, our battery storage solutions serve as energy assets that support long-term resiliency and performance. By integrating advanced monitoring, control, and optimization capabilities through our PowerControl platform, we help customers unlock maximize utility incentives and demand response participation, reduce energy cost and minimize their carbon footprint.

Whether your facility needs to protect mission-critical operations, support renewable integration, or prepare for grid instability, PowerSecure designs battery energy storage systems that drive strategic energy transformation.