4 Ways to Boost Your Bottom Line with Battery Storage

Battery energy storage systems (BESS) are becoming a top solution for large electricity users looking to reduce energy costs, increase reliability, and generate passive revenue. In Northern Illinois, particularly within ComEd territory, battery storage is proving to be a high-impact, low-risk investment when paired with solar and combined with available incentives and grid programs. In this post, we explain how battery storage works, explore the four key revenue streams, and highlight the financial benefits for commercial and industrial businesses in the region.
Why Battery Storage Is a Smart Investment
While solar energy has helped organizations reduce electricity costs for years, solar alone can’t address peak demand charges, grid instability, or resilience during outages. That’s where battery storage provides distinct advantages. Battery systems offer businesses several key benefits, allowing them to:
- Stored energy for peak-rate periods to reduce reliance on high-cost utility power.
- Reduce demand charges, which are often a significant part of commercial electric bills.
- Participate in grid markets to generate monthly revenue.
- Protect operations during outages with optional backup power.
How Battery Storage Supports Your Facility
Modern commercial battery storage systems are intelligent, flexible, and designed to support your operations without interruption. Once installed, the system automatically responds to grid conditions, utility pricing, and your facility’s energy use to deliver financial and operational benefits. Here’s how:
Grid Participation
Battery systems can be enrolled in utility or grid support programs to provide services that help maintain a balanced electric grid. These programs compensate your facility for allowing your battery to respond to grid needs—like balancing supply and demand—often resulting in ongoing monthly payments.
Peak Charge Reduction
Batteries help reduce your highest periods of energy use and when electricity is most expensive. By automatically discharging stored energy during these moments, your facility can lower its demand-related charges on utility bills. Over time, this can lead to substantial savings, especially in high-demand environments like manufacturing.
Operational Resilience
Battery systems can be configured to provide emergency power to critical systems in the event of a utility outage, giving businesses an alternative to diesel generators. This is especially valuable for manufacturers, data centers, healthcare, and other operations protecting essential operations against unplanned downtime.
The Four Revenue Streams of Commercial Battery Storage
Now that we’ve covered how battery systems function, here are the four main ways they generate financial returns for Illinois facilities:
1. Investment Tax Credit (ITC) The federal ITC allows businesses to deduct at least 30% of a battery system’s total installed cost from federal taxes. As of 2023, standalone battery storage qualifies, thanks to the Inflation Reduction Act. Bonus credits are available for projects that meet domestic content standards, use prevailing wages, or are located in energy communities.
2. ComEd Distributed Generation (DG) Rebate ComEd’s DG rebate offers one of the most attractive battery incentives in the country, covering a good portion of battery project costs. To be eligible, systems must be behind-the-meter and designed for load management or grid participation. When combined with the ITC, businesses can cut total project costs by more than 80%-90%. Working with an experienced partner ensures compliance with technical requirements and streamlines the application process.
3. Demand Charge Reduction Demand charges are fees based on your facility’s highest electricity usage during short intervals and can make up 30%–50% of a commercial electric bill. Battery systems reduce these charges by supplying power during those high-demand moments, even if overall energy use doesn’t change.
4. Grid Services and Capacity Payments In PJM territory, batteries can provide value by participating in grid programs such as frequency regulation, demand response, and capacity markets. These services pay your facility for helping balance the grid, and enrollment through a qualified service provider can maximize returns. Well-managed systems often evolve from cost-saving tools into profit-generating assets.
Example Scenario: Northern Illinois Manufacturer
Facility Profile: 50,000 sq. ft. manufacturing site
Solar System Size: 85 kW
Battery Size: 500 kW / 3.9 MWh
Performance Highlights:- 1,450 metric tons of CO₂ offset annually
- ROI achieved in just 2 years
- 85% of costs recovered in Year 1
- Over $1.7 million in total value from energy savings and grid revenue
Final Thoughts
Battery storage in Northern Illinois is delivering real results. For commercial and industrial facilities, it offers a rare combination of:
- Utility bill reductions
- Valuable federal and utility incentives
- Grid market revenue
- Operational resilience during outages
Ready to See What Battery Storage Could Do for Your Facility?
Let’s connect. Our team can help explore whether BESS aligns with your energy goals. No pressure—just expert insights tailored to your business. Contact us today.