New battery incentives for businesses

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For many local businesses, electricity costs are not driven only by how many kilowatt-hours they use.

Demand charges, afternoon peaks, refrigeration, air conditioning, machinery and extended operating hours can all increase the bill.

From September 1, a new NSW battery activity known as BESS4 was scheduled to provide an additional incentive for eligible small and medium business solar-and-battery projects.

This may suit workshops, clubs, offices, retail premises, hospitality businesses and light industrial sites that use substantial power late in the day.

Solar can supply daytime operations, while a battery can store energy and discharge during higher-cost periods. Depending on the tariff, batteries can also help reduce peak demand.

However, a battery should never be sized from the quarterly bill alone. Businesses should use interval data to understand their daily load profile, maximum demand, operating hours and seasonal changes.

A smaller battery that cycles effectively every day may deliver better value than a larger battery that regularly sits unused.

Business owners should also ask installers to show the NSW incentive separately and explain the assumptions behind projected savings, including any switchboard work, metering, network applications and energy-management controls.

For Penrith businesses, the opportunity is to treat energy like any other major input: measure it carefully, purchase it strategically and invest only where there is a clear return.

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