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Battery Energy Storage Systems (BESS) can help businesses reduce energy costs, make better use of renewable generation and build greater resilience into their energy infrastructure.
Investing in a commercial battery storage system can require significant upfront capital.
Flexible battery storage financing provides an alternative.
Make Battery Storage Work for Your Business – Without the Upfront Capital Cost
Instead of delaying an energy storage project because of capital constraints, businesses can explore a range of funding structures designed to spread the cost, preserve working capital or remove the need to purchase the system altogether.
From BESS leasing and asset finance to Power Purchase Agreements (PPAs) and Energy-as-a-Service, the right approach depends on your site, energy consumption, objectives and preferred financial model.
Why Invest in Commercial Battery Storage?
For many organisations, energy is becoming an increasingly important operational and financial consideration. A commercial Battery Energy Storage System gives businesses greater control over when electricity is purchased, stored and consumed.
Depending on the site and system configuration, BESS can help businesses:
Reduce electricity costs by storing energy during lower-cost periods for use when electricity is more expensive.
Increase solar self-consumption by storing surplus electricity generated by onsite solar rather than immediately exporting it.
Reduce peak demand by using stored electricity during periods of high site consumption.
Improve energy resilience by supporting critical loads when appropriately designed for backup or resilience applications.
Support EV charging and electrification where additional electrical demand could otherwise place pressure on existing site capacity.
Support decarbonisation strategies by allowing businesses to make more effective use of renewable electricity.
Access potential flexibility opportunities where the system, site and relevant market arrangements allow participation.
The commercial case for battery storage will vary from site to site. Understanding your half-hourly consumption, electricity tariff, peak demand, onsite generation and future energy requirements is therefore an important part of determining the potential return.
Battery Energy Storage Systems can deliver significant long-term savings, but the initial capital investment can be a barrier for some businesses. A range of flexible funding options can help make BESS projects commercially viable without placing unnecessary pressure on capital budgets.
Reduce or remove upfront capital expenditure
Align project costs with future energy savings
Choose a finance model that fits your business
Invest in Energy Savings Without the Upfront Cost
Finance Options Explained
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Battery Energy Storage Leasing
Access a commercial battery storage system without the upfront cost of purchasing it outright. Leasing spreads the cost over an agreed term, helping businesses preserve capital while benefiting from lower energy costs and improved energy resilience.
Finance the purchase of your BESS through structured repayments rather than a large initial capital investment. Capital finance can make battery storage more accessible while providing a clear route towards ownership of the system.
Benefit from battery storage without owning or managing the infrastructure yourself. An Energy-as-a-Service model can combine equipment, operation and maintenance into an agreed service arrangement, reducing upfront investment and simplifying long-term energy management.
Pay for the energy your system delivers rather than purchasing the infrastructure itself. PPAs can provide access to renewable generation and battery storage with little or no upfront capital expenditure, with costs typically based on an agreed price for the energy supplied.
Leasing can provide access to commercial battery storage without requiring the full system cost to be paid at the beginning of the project.
Instead, the cost is spread across an agreed period through regular payments.
This can be particularly attractive for businesses that want to preserve capital for other investments while still benefiting from energy storage technology.
Potential benefits of BESS leasing include:
Reduced initial capital requirement
Predictable payments
Improved cash-flow planning
Ability to deploy energy technology sooner
Potential options regarding ownership at the end of the agreement, depending on the finance structure
For businesses comparing outright purchase with financing, the projected energy savings should be considered alongside the total financing cost over the agreement period.
Pay for energy rather than purchasing the infrastructure
Finance the purchase while retaining ownership
Some businesses want the long-term benefits of owning their Battery Energy Storage System but would prefer not to commit the entire purchase price upfront.
Capital or asset financing can allow the cost of purchasing and installing BESS to be spread across an agreed period.
At the end of the relevant financing arrangement, the business can own an energy asset capable of continuing to deliver value throughout its remaining operational life.
Potential benefits include:
Ownership of the energy storage asset
Spreads investment over an agreed period
Preserves capital for other business priorities
Potential long-term savings after financing costs are repaid
Greater control over how the battery is operated and optimised
Businesses should obtain appropriate financial and tax advice when assessing the accounting and taxation treatment of any financed energy infrastructure.
Energy-as-a-Service (EaaS) allows organisations to access energy technology and expertise through a service-based commercial model.
Rather than treating battery storage simply as an equipment purchase, an EaaS arrangement can combine elements such as system design, installation, operation, monitoring and maintenance within a longer-term agreement.
This approach can be particularly useful for organisations that want the benefits of modern energy infrastructure without taking responsibility for every aspect of owning and operating the assets.
Depending on the agreement, potential benefits can include:
Reduced upfront investment
Predictable energy-related costs
Ongoing monitoring and optimisation
Maintenance and technical support
Ability to incorporate additional technologies as energy requirements evolve
Pay for energy rather than purchasing the infrastructure
A Power Purchase Agreement, or PPA, provides a different approach to funding onsite energy infrastructure.
Rather than purchasing the equipment outright, an agreed provider funds and operates eligible energy assets and the customer purchases electricity under a long-term agreement.
PPAs are commonly associated with commercial solar installations and can form part of a wider energy strategy incorporating battery storage.
For organisations seeking to reduce upfront investment, a PPA can provide a route to cleaner onsite energy while transferring elements of asset ownership, operation and maintenance to the provider.
Potential advantages include:
Little or no upfront capital expenditure
Greater long-term energy price visibility
Access to renewable energy infrastructure
Maintenance responsibilities can be incorporated into the agreement
Potential reduction in exposure to grid electricity prices
The exact commercial structure, electricity price and contract duration will depend on the project.
Choosing the Right BESS Financing Model
The best financing option isn’t necessarily the one with the lowest monthly payment.
Businesses should compare the total cost and potential benefit over the life of the project.
Factors to consider include:
Initial capital contribution
Monthly or annual payments
Contract duration
Electricity price assumptions
Projected energy savings
Ownership of the equipment
Maintenance responsibilities
Battery warranties
Performance guarantees
End-of-contract arrangements
Future expansion requirements
The technical design and financial model should ultimately work together.
A well-financed battery that is incorrectly sized is unlikely to deliver the expected return. Equally, a technically excellent system may struggle to secure internal approval if the commercial structure doesn’t meet the organisation’s investment criteria.
Start with an Energy and BESS Assessment
The first step towards financing commercial battery storage should be understanding what the system could realistically achieve at your site.
This typically means assessing your electricity consumption profile, tariffs, peak demand, available electrical infrastructure, existing or proposed renewable generation and future requirements such as EV charging or electrification.
From there, an appropriately sized Battery Energy Storage System can be modelled and different commercial structures compared.
Whether the objective is to reduce electricity costs, maximise solar generation, improve resilience or support a wider net zero strategy, financing can provide a practical route to implementing battery storage without placing unnecessary pressure on capital budgets.
Assess. Model. Finance. Implement.
Explore Your Battery Storage Financing Options
If you’re considering commercial battery storage, solar PV or a combined solar and BESS project, speak to an energy storage specialist about the technical and financial options available.
A site-specific assessment can help establish the appropriate system size, expected energy savings, potential project economics and financing structure for your organisation.
Start your BESS project today and discover how battery storage financing could help turn your energy strategy into a commercially viable project.
Access battery storage through a range of financing structures designed around your project, cash flow and commercial objectives.
Ready to Explore Your BESS Financing Options?
Every battery storage project is different. Our team can assess your energy requirements, commercial objectives and site characteristics to help identify the right BESS solution and the most appropriate route to funding it.
From outright purchase and asset finance to leasing, PPAs and Energy-as-a-Service, we can help you explore the options and build the business case.