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What is BESS and How Does it Work?

Jun. 17, 2025

Battery energy storage systems (BESS) provide a reliable way to store energy for use when it’s needed. As advanced technological solutions, BESS can store energy from various sources to ensure availability despite fluctuations caused by weather, outages, or geopolitical factors. For utilities, businesses, and homes, these systems are essential to maintaining a continuous power supply. Today, BESS is no longer just an add-on but a fundamental component of any modern energy strategy, particularly those relying on renewable solar power. While solar energy is abundant during the day, its limitation is clear: no sunlight means no immediate power generation. By integrating battery storage with photovoltaic (PV) systems, excess solar energy generated during daylight hours can be stored and used at night, ensuring a consistent and uninterrupted power supply around the clock.

 

Battery energy storage systems (BESS)


How Does a Battery Energy Storage System Work?

 

A battery energy storage system (BESS) operates by storing electricity from various sources—whether from the power grid, power plants, or renewable energy like solar panels—and releasing it when needed. This stored energy allows for more efficient and flexible energy use, helping to balance fluctuations in demand and supply.

 

When integrated with advanced software, a BESS becomes a smart platform that combines the battery’s storage capacity with intelligent energy management. Leveraging AI, machine learning, and data-driven technologies, it optimizes energy consumption and enhances system performance.

 

By enabling better integration of renewable energy, battery energy storage systems contribute to lowering carbon emissions and can reduce energy costs for both businesses and households. In this way, BESS plays a crucial role in promoting sustainability and combating climate change.


BESS: Key Applications


Battery energy storage systems (BESS) offer far more than just emergency backup during power outages. Their applications vary depending on whether they serve commercial or residential users.


For commercial and industrial users, common BESS applications include:

  • Peak Shaving: Managing and reducing energy demand during short-term consumption spikes to lower costs and avoid grid strain.

  • Load Shifting: Moving energy usage from high-cost periods to lower-cost times by drawing from stored battery power.

  • Flexibility: Reducing grid demand at critical times without altering overall electricity consumption, enabling easier participation in Demand Response programs and generating cost savings.

  • Microgrids: Serving as essential energy storage components that allow microgrids to operate independently by disconnecting from the main grid when necessary.

  • Renewable Integration: Ensuring a stable and continuous power supply by compensating when renewable sources like solar or wind are temporarily unavailable.


For residential users, BESS provides benefits such as:

  • Self-Consumption: Storing solar energy generated during the day to power household appliances at night.

  • Emergency Backup: Providing reliable power during blackouts.

  • Going Off-Grid: Allowing complete independence from the electrical utility by relying solely on stored energy.

Battery energy storage solutions empower both businesses and homes to optimize energy use, improve resilience, and support a cleaner energy future.


Advantages of Battery Energy Storage Systems


Battery energy storage systems offer numerous benefits that enhance the reliability and viability of renewable energy. Since solar and wind power can be intermittent, battery storage plays a vital role in stabilizing energy supply by smoothing out fluctuations to deliver continuous power whenever it’s needed, regardless of weather conditions. Additionally, they protect users from grid instability that might disrupt energy availability. Key advantages include:


  • Environmental Benefits: Installing battery storage alongside renewable energy sources reduces pollution, supports the energy transition, and helps combat global warming.

  • Lower Energy Costs: By storing electricity when rates are low and using it during peak, higher-cost periods, users can shift consumption and save on energy bills. These savings increase significantly when paired with free solar power.

  • Reduced Grid Dependence: Battery systems ensure a stable energy supply even when the grid is unstable due to demand spikes or severe weather events.

  • Continuous Power Supply: Unlike solar panels, which only generate energy during daylight, battery storage provides power 24/7 by storing excess energy for use when the sun isn’t shining.

  • Enhanced Resilience: Batteries provide reliable emergency backup during outages, helping businesses and homes maintain operations without interruption.

Overall, battery energy storage systems improve energy reliability, reduce costs, and contribute to a more sustainable and resilient power infrastructure.


Main Types of Battery Energy Storage Systems


Battery energy storage systems are generally classified into two main types: Behind-the-Meter (BTM) and Front-of-the-Meter (FTM) systems.


  • Behind-the-Meter (BTM) Systems: These are smaller-scale storage solutions installed on the consumer’s premises, such as residential solar PV setups paired with batteries. Their primary purpose is to enhance energy stability for the user and reduce costs by storing excess energy for later use, especially when solar generation is low. In some regions, BTM systems can also feed stored energy back into the grid, creating potential revenue opportunities for the owner while easing grid stress.


  • Front-of-the-Meter (FTM) Systems: These are large-scale storage facilities connected directly to the utility grid. Typically owned and operated by utilities, FTM systems support grid stability by managing network congestion, storing energy from large power plants or solar parks, and serving as alternatives to costly grid infrastructure expansion.


Together, BTM and FTM systems address different needs in the energy ecosystem—empowering consumers and supporting utilities to optimize energy management and promote renewable integration.


Battery Energy Storage System Lifespan and Second Life


Most battery energy storage systems have a lifespan of 5 to 15 years. As vital components in the transition to sustainable energy, these batteries must also align with sustainability principles themselves. Extending their usefulness through reuse and recycling is key to supporting a circular economy.


Giving batteries a second life—by repurposing them for less demanding applications after their initial use—reduces environmental impact by minimizing raw material extraction and waste. This approach not only benefits the environment but also offers economic advantages by maximizing the value of battery materials and components throughout their lifecycle.

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