What does commercial battery storage cost?
EQORE’s installed systems typically run about $400–600 per kWh of storage, depending on the state and any electrical upgrades the site needs. The total depends on the size, and the size that pays best is rarely the biggest one you can afford. Here is how size, cost and savings trade off, where the money goes, why the math has changed, and the two ways to pay for it.
01
The price follows the size
kW measures how much power a battery can supply at once. kWh measures how much energy it stores. More power helps cover taller peaks; more energy helps cover longer ones. Both affect the system you need and what it costs.
02
The return follows your bill
A battery earns by cutting the demand charge and through utility programs. How much depends on how tall and how long your peaks are, not on the size of the battery.
03
The right size gives the most net value
Net value is the savings left after paying for the system and its upkeep. Too small misses useful savings. Too big adds cost without enough extra savings. The sweet spot is the size with the most left over.
Find the size that earns its keep
Choose an example facility, then move the battery-size slider. Compare the savings over 10 years with the upfront cost. The widest gap between the two is the sweet spot: the size with the most net value.
A couple of brief spikes a day, such as a compressor or furnace starting up. A little energy shaves a lot of kW.
kWh is stored energy; kW is power. In these examples, a 400 kWh battery supplies 200 kW for two hours. Increase the size to cover more of the peak.
Smaller, cheaperBigger, costlier
- Savings over 10 years, after upkeep
- Installed cost
- Net value
- Demand charge cut
- 20–25%
- 171 kW off the worst peak
- Cost vs the sweet spot
- About the same
- Upfront installed cost
- Value vs the sweet spot
- about 100%
- Net value over 10 years
The line shows facility demand. The shaded area is supplied by the battery; the dashed line is the lower peak seen by the grid.
Near the sweet spot for this facility: it cuts the demand charge by 20–25% and returns the most for what it costs.
Example facilities that each peak near 800 kW, over a 10-year view. Short, sharp peaks: the sweet spot is about 175 kW / 350 kWh, cutting the demand charge by 20–25%. An afternoon ramp: the sweet spot is about 300 kW / 600 kWh, cutting the demand charge by 30–35%. Long, flat peaks: the sweet spot is about 400 kW / 800 kWh, cutting the demand charge by 30–35%. At 1,000 kW / 2,000 kWh every shape is worth less than at its sweet spot.
Start with short peaks
A brief spike needs a burst of power, but little stored energy. Move the slider up: savings rise quickly, then flatten. After that, a bigger battery mostly adds cost.
Switch to longer peaks
An afternoon ramp needs energy for longer. Long, flat peaks need it for hours. The sweet spot moves toward a larger battery because each kW of peak reduction takes more kWh to sustain.
Read the gap, not just the savings
The blue curve is savings after upkeep; the other line is the installed cost. The shaded gap is net value. A bigger demand-charge cut can still leave less net value if the extra battery costs more than it earns.
Where the upfront money goes
The battery system and power equipment take the largest share: roughly two-thirds to three-quarters of the upfront cost. The rest brings it into service: controls, electrical materials, engineering, permits, installation and commissioning.
Battery system and power equipmentAbout 70%
Battery cabinets, inverters, transformers and protection equipment. Size and power requirements drive this share.
Controls and meteringAbout 5%
The meters, control hardware and software setup that connect the battery to your facility.
Electrical and structural materialsAbout 5%
Cable, switchgear and the infrastructure around the battery. Layout and distance to the electrical service matter.
Engineering, permits and project managementAbout 10%
System design, engineering reviews, utility coordination, permits and managing the project through delivery.
InstallationAbout 5%
Construction and electrical labor to put the equipment in place and connect it to your facility.
Commissioning and handoverAbout 5%
Configuration, equipment startup and testing the complete system before it goes into service.
Looked at batteries before? The math has changed.
If storage didn't pencil out for you a few years ago, three things have moved since, and all three in the same direction.
| Year | Schedule | $ per kW |
|---|---|---|
| 2008 | E-19 | $18.16 |
| 2009 | E-19 | $20.03 |
| 2010 | E-19 | $21.14 |
| 2011 | E-19 | $21.21 |
| 2012 | E-19 | $26.55 |
| 2013 | E-19 | $27.92 |
| 2014 | E-19 | $29.02 |
| 2015 | E-19 | $32.70 |
| 2016 | E-19 | $34.60 |
| 2017 | E-19 | $34.72 |
| 2018 | E-19 | $36.21 |
| 2019 | E-19 | $37.49 |
| 2020 | B-19 | $46.66 |
| 2021 | B-19 | $46.52 |
| 2022 | B-19 | $53.49 |
| 2023 | B-19 | $61.67 |
| 2024 | B-19 | $89.45 |
| 2025 | B-19 | $96.02 |
| 2026 | B-19 | $83.53 |
01
Demand charges went up
PG&E's summer demand charge for large commercial customers went from $37.49/kW in 2019 to $83.53/kW today (E-19 then, B-19 now), 2.2 times as much. On standard B-19, every kW a battery takes off the peak can be worth that much more.
02
Batteries got cheaper
BloombergNEF found pack prices for stationary storage fell 45% in 2025 alone. That is the pack alone: an installed system includes other costs, which this pack-price figure does not measure.
03
Programs pay a battery to run
In Massachusetts, ConnectedSolutions and the Clean Peak Standard pay for discharging in set windows, on top of what the battery takes off the electric bill.
Why the right size is hard to call
A short spike and an all-afternoon peak can reach the same kW but need different amounts of stored energy. Your rate and utility programs then put a different value on covering each one. That is why sizing starts with your electricity use, not a price per kWh.
01
Your tariff
Demand charges, time-of-use windows and ratchets differ by utility and rate. The same battery can be worth much more on one rate than another.
02
Your load shape
Short spikes or long plateaus, one busy season or twelve. It takes a year of interval data to see which peaks set the bill and how much energy each one needs.
03
The programs you can join
Programs such as ConnectedSolutions and the Clean Peak Standard pay for discharging in set windows. They compete with your own peaks for the same stored energy, and they move the sweet spot.
04
How you pay for it
Purchase and shared savings change who carries the cost and who keeps the savings, so they can point to different sizes for the same facility.
EQORE runs this for every facility in the free assessment: your bills and interval data, your rate, the programs you qualify for and both ways to pay, weighed together to find the size that returns the most.
Two ways to get an EQORE system
Both include the full turnkey scope and 24/7 operation by EQORE.
Shared savings
$0 upfront. Share the savings.
- EQORE covers design, permitting, installation, operation and maintenance
- EQORE owns the system for the life of the agreement
- The savings are shared with you, with no capital or operating cost on your side
Purchase
2–3 year payback for most customers, before tax benefits.*
- You purchase and own the battery system
- EQORE operates and maintains it for you under a service subscription
- You keep 100% of the savings and program revenue it generates
* Payback includes on-bill savings and utility program revenue, before any tax benefits. Actual results vary by facility.
$0 upfront. What's the catch?
EQORE pays for and owns the system, operates it and maintains it. The battery lowers your electric bill and can earn program revenue. You share the savings with EQORE instead of paying for the installation.
See how shared savings works and compare it with purchase
- How can it cost nothing upfront?
- EQORE pays for the system and owns it for the life of the agreement. EQORE's return comes from its share of the savings the battery creates, so there is nothing for you to pay to install it or run it. It is not a government handout: the money comes from a lower electric bill and, where they apply, utility programs.
- So what's the catch?
- You share the savings instead of keeping all of them. If you would rather keep 100% of the savings and program revenue, you can purchase the system instead.
- Are there hidden costs for installation or permits?
- No. Under shared savings, EQORE covers design, permitting, installation, operation and maintenance, with no capital or operating cost on your side.
- We have no capital budget this year. Does that rule us out?
- No. That is what shared savings is for. Whether a battery fits depends on your electric bill, not your budget: the best fits are facilities spending $10K+ a month on electricity.
Questions about battery cost
How much does a commercial battery storage system cost?
EQORE’s installed systems typically run about $400–600 per kWh of storage, depending on the state and any electrical upgrades the site needs. The total depends mostly on size and on the site: the battery and inverter, the electrical hardware around them, installation, permits and the utility connection. Battery prices have fallen sharply in recent years, while site work has not fallen as fast, so two systems of the same size can cost quite different amounts. Because costs vary so much, it is very hard to know without a full analysis of your bills, interval data and site, which is what the free assessment does.
What size battery does my facility need?
The size that returns the most for what it costs, which is rarely the biggest. It depends on your rate, how tall and how long your peaks are, which utility programs you can join and how you pay for the system. EQORE models it for each facility in the free assessment.
How much will a battery take off our electric bill?
As a rough first look, a facility that fits saves about 1–4 months of its electricity spend a year: the equivalent of 1 to 4 monthly bills. Where you land depends on your rate, how tall and how long your peaks are, and the programs you can join. It is very hard to know more closely without a full analysis, so the free assessment models your facility to narrow it down.
What is the payback? We need two to three years.
For the purchase option, EQORE projects a 2–3 year payback for most customers, before tax benefits, including on-bill savings and utility program revenue. It varies by facility, with the rate, the peaks and the programs it can join, and a battery sized too small or too big pays back more slowly. The free assessment shows yours. If you need a faster return than that, shared savings needs no capital, so there is nothing to pay back.
How can a battery save money if we don't use less power?
Much of a commercial electric bill is the demand charge, set by your highest 15-minute peak of the month, not by how much energy you use. The battery charges when demand is low and covers your peaks, so the meter records a lower peak. You use the same power; the utility sees less of it at the peak.
Under shared savings, do we pay both EQORE and the utility?
You keep paying your utility as you do now, and the bill is lower because the battery cuts your peaks. EQORE’s share of the savings, and how it is settled, are set out in your agreement. Your assessment shows the numbers for your site before you commit to anything.
How long is a shared-savings agreement, and is the split fixed?
EQORE owns and operates the system for the life of the agreement. The term and split are set for each facility, because they depend on what the battery can save there. Your assessment lays them out.
What does a battery cost to run each year?
If you purchase, EQORE operates and maintains the system under a service subscription. Under shared savings, EQORE covers operation and maintenance, with no operating cost on your side. Your assessment sets out the costs for the option you choose.
Check the fit and compare alternatives
Sources (2)· Last reviewed October 26, 2026
- PG&E electric rate schedules E-19 and B-19 (opens in a new tab), summer peak-period plus maximum-demand charge, secondary voltage; current B-19 rate effective March 2026
- BloombergNEF, Lithium-Ion Battery Price Survey, December 2025 (opens in a new tab), change in stationary storage pack prices
Take control of your power
Find the right size for your facility
Send a recent electricity bill. We model your peaks, rate and programs against a year of interval data and show system options, projected savings and payback for both ways to pay.