Battery storage is set to play a much bigger role in Australia’s energy future. For businesses, the opportunity is straightforward: store electricity when it is available or less expensive, then use it when it can create more value.

This shift is already visible in new projects. Battery attachment rates in Smart Commercial Energy’s solar projects have tripled since 2024, from 3.5% across 2021–2024 to 11.7% across 2025–2026*. The technology is flexible, but a successful project still needs careful planning. Kealy Day from Smart Commercial Energy explains how commercial batteries work, how they connect with solar and what businesses should consider before choosing a system.

Watch: How Does Commercial Battery Storage Work? | Smart Answers

What is a commercial battery?

A commercial battery is an energy storage system connected to a business site. It takes in electricity, stores it and releases it when the business needs it.

Some people call these systems solar batteries because they are often used to store excess solar generation. However, a commercial battery can also charge from the grid. What matters is not where the energy comes from, but when storing and using it creates the best outcome for the site.

How does commercial battery storage work?

At a simple level, electricity flows into the battery, is stored and then flows back out later. An inverter manages the movement of electricity, while the battery control system decides when to charge and discharge.

For a business, that could mean:

• Storing daytime solar for use in the evening.
• Charging when grid energy is less expensive and using it when prices are higher.
• Supporting the site during short demand peaks.
• Keeping selected critical loads operating during an outage, where backup has been designed into the system.
• The business problem or financial opportunity the battery needs to address.
• Your interval energy use and solar generation data.
• Electricity tariffs, demand charges and export arrangements.
• The power and usable storage capacity the site actually needs.
• Existing inverter, switchboard and network limitations.
• Which loads, if any, need backup power.
• Planning, network, fire safety and engineering requirements.
• Warranty, degradation, cycling limits and long-term support.
• How the system will be controlled and how savings will be verified.

The equipment is only part of the solution. The control strategy determines how the battery responds to solar production, tariffs, demand and day-to-day operations. A well-programmed system can balance several priorities without asking the business to manage every decision manually.

Which battery configuration suits your business?

The right configuration starts with a clear understanding of the problem you want to solve. Are electricity costs the priority? Are you exporting valuable solar energy? Do demand peaks or blackouts affect the business? Are you planning to add new electrical loads?

From there, we look at site data, tariffs, switchboard capacity, the network connection, available space and future energy plans. We also consider both battery power, which affects how quickly the system can respond, and storage capacity, which affects how long it can supply energy.

This approach helps avoid paying for a system that is larger than you need, or installing one that cannot deliver the intended result.

How easy is it to add a battery to an existing solar system?

It depends on the site and the existing equipment. In some cases, a compatible inverter can make the addition relatively straightforward. Other sites may need a separate battery inverter, switchboard upgrades, protection changes, metering work or a wider electrical upgrade.

Commercial battery projects can also involve planning approvals, network connection requirements, engineering studies and fire safety measures. These steps are manageable, but they need to be considered early so there are no avoidable surprises in the programme or budget.

An experienced delivery partner can guide the project from feasibility and modelling through approvals, installation, commissioning and ongoing optimisation.

How much space does a commercial battery need?

Commercial batteries come in many sizes. Smaller systems may use low-profile wall-mounted units. Larger businesses may need outdoor cabinets, while very large commercial or utility projects can use container-sized systems.

The available footprint is important, but it is not the only consideration. The design also needs to allow for safe access, maintenance, ventilation or thermal management, cable routes, emergency response and appropriate separation from other equipment.

The aim is not to fit the largest battery possible. It is to install a safe, compliant system with the right power and storage capacity for the business case.

What should you consider before installing a BESS?

Design the system around the outcome

Battery storage can solve more than one energy challenge, but flexibility only creates value when the system is designed around a clear commercial outcome. Smart Commercial Energy starts with your data, your site constraints and your long-term plans, then develops a solution around what the business needs to achieve.

Plan your commercial battery project with confidence

A well-designed battery can help you use more onsite solar, respond to changing electricity prices, manage demand peaks and strengthen business resilience. The right configuration, approvals and control strategy turn that potential into a dependable long-term asset.

Speak with the Smart Commercial Energy team about a commercial battery system designed around your site, energy profile and financial goals.

*Based on 637 commercial solar and battery projects contracted by Smart Commercial Energy between January 2021 and October 2026.