How storage cuts a demand charge
If your meter records a 90 kW spike for fifteen minutes when compressors, ovens or chargers all start at once, you may pay for that spike all month. A battery watches the load and discharges just enough to hold the peak down.
The savings depend on how spiky and how predictable your load is. We need interval data to model it honestly; without it, any savings number is a guess.
Federal credit runway for storage
Energy storage keeps the §48E credit at 100% of its base value for projects beginning construction through 2033, then 75% in 2034 and 50% in 2035 (as of September 2026; verify current terms). Projects beginning construction after 2025 must meet foreign-entity-of-concern (FEOC) material-assistance rules under IRS Notice 2026-15.
Bonus depreciation may also apply. Ask your CPA how the credit, depreciation and basis reduction fit your situation.
Outage protection for operations
Xcel’s wildfire shutoffs in December 2025 and March 2026 cut power for a day to three days or more in parts of Boulder, Jefferson, Larimer, Weld and Clear Creek counties. For a restaurant, clinic or grocery, a single day without refrigeration can cost more than months of demand charges.
Backup design means choosing which circuits stay on — refrigeration, point-of-sale, network, security — and sizing for that load. Whole-building backup is rarely economical.
FAQ
Questions we hear
Does commercial storage still get a federal tax credit?
Yes, as of September 2026. Storage projects that begin construction through 2033 can claim the §48E credit at its full base rate, stepping down in 2034 and 2035. FEOC sourcing rules apply; verify with your tax advisor.
Do we need solar to install a commercial battery?
No. A standalone battery can shave demand peaks by charging from the grid during off-peak hours. Pairing with solar adds energy savings and longer backup.
How do you figure out demand-charge savings?
From 15-minute interval data and your utility’s rate schedule. We simulate how much the battery can lower each month’s peak.
Can a battery keep our walk-in coolers running in an outage?
Usually, if we size for compressor start-up surge and the hours you need to cover. We look at nameplate data before recommending a size.