The Business Case for Battery Storage
By Cheryl Ashton, Marketing Coordinator, TSG UK
Why Battery Energy Storage Systems (BESS) are becoming a cornerstone of resilient, low-carbon energy strategies.
Battery Energy Storage Systems (BESS) are fast becoming a defining feature of the UK’s energy transition. As businesses seek greater control over energy costs, resilience and sustainability, battery storage is proving to be a strategic asset that supports operational continuity and unlocks the full potential of renewable generation.
From logistics hubs and manufacturing plants to data centres and defence facilities, organisations across the UK are recognising the value of storing electricity for use when it matters most. Whether paired with solar installations or integrated into high-voltage infrastructure, BESS is reshaping the energy landscape by enabling smarter, cleaner and more reliable power management.
A Strategic Shift Towards Energy Independence
The UK’s energy market is undergoing a profound transformation. Rising electricity prices, grid instability and the growing urgency of climate targets are prompting businesses to rethink how they source and consume energy. Battery storage offers a practical solution that allows surplus electricity to be stored and deployed during peak times, outages or periods of low generation.
For companies investing in solar photovoltaic (PV) systems, battery storage ensures that every kilowatt generated can be utilised to its full potential. Energy captured during daylight hours can be stored and used overnight or during overcast conditions, reducing reliance on the grid and shielding businesses from price volatility. This shift towards energy autonomy is not only financially prudent but also environmentally responsible.
Unlocking Commercial Value
The business case for battery storage is compelling. By storing energy when tariffs are low and using it when prices rise, companies can significantly reduce operational costs. In some cases, stored energy can be sold back to the grid, creating an additional revenue stream.
Careful planning is essential. The balance between energy generation, battery capacity and on-site consumption must be optimised to deliver a strong return on investment. Deep-cycle lithium iron phosphate (LiFePO₄) batteries, commonly used in commercial systems, offer high performance, long lifespans and minimal maintenance.
These batteries are specifically designed to be discharged and recharged repeatedly without compromising their internal structure, making them ideal for applications where energy is stored and used regularly. Unlike standard batteries that deliver short bursts of power, deep-cycle batteries provide a steady flow of energy over extended periods, which is particularly valuable in dynamic energy environments such as solar PV and battery storage systems.
When paired with solar PV, battery storage systems begin delivering value from day one. The average payback period is around seven years, depending on energy rates, system size and usage patterns. Once installed, these systems provide long-term protection against market fluctuations and support broader sustainability goals.
Supporting Grid Stability and Sector Growth
Beyond individual businesses, BESS plays a vital role in strengthening the national grid. By smoothing out fluctuations and reducing peak loads, battery storage helps maintain system stability and reduces the need for costly upgrades to transmission infrastructure. It also supports the integration of intermittent renewables, such as wind and solar, by ensuring that energy is available when generation dips.
Sectors such as telecommunications, aerospace and remote operations are increasingly reliant on uninterrupted power supply, making BESS a critical component of their energy strategies. Government incentives and favourable policies are accelerating adoption, while co-location with renewable assets is helping projects achieve economies of scale.
Overcoming Challenges
Despite its promise, grid-scale battery storage is not without challenges. Regulatory complexity, grid connection delays and infrastructure limitations can hinder progress. Material cost volatility and technological constraints also affect feasibility and planning.
However, these barriers are being addressed. National Energy System Operator (NESO), formerly known as the Electricity System Operator (ESO), has introduced the ‘First Ready, First Connected’ policy*, accelerating connections for up to 20 gigawatts (GW) of clean energy projects, including 10GW of battery storage. Selected BESS projects are now being prioritised for transmission connections ahead of network reinforcement, provided their operations can be adjusted to reduce system impact.
UK Power Networks has introduced a fast-track programme to significantly reduce connection times for 25 projects totalling 836 megawatts (MW)**. These changes are helping to clear backlogs and boost investor confidence.
Technological advancements are also playing a key role. Solid-state batteries are emerging as a promising alternative to traditional lithium-ion designs, offering improved safety, energy density and lifespan. These innovations support longer-duration storage and reduce reliance on critical minerals, aligning with sustainability goals.
*Source: National Energy System Operator (NESO), Clean Power 2030 Action Plan
The Role of TSG Power
TSG Power is at the forefront of this energy revolution, delivering turnkey BESS solutions that meet the operational and commercial needs of modern businesses. From feasibility studies and system design to installation and maintenance, TSG Power provides full lifecycle support, ensuring that each project is delivered to the highest standards of quality, safety and compliance.
As a trusted engineering, procurement and construction (EPC) contractor and Independent Connection Provider (ICP), TSG Power integrates battery storage with solar PV, high-voltage infrastructure and smart energy systems. Its in-house teams manage every aspect of the process, from civil works and cabling to commissioning and grid connection.
TSG Power’s consultative approach ensures that clients receive tailored solutions aligned with their energy strategy. Detailed site assessments, regulatory reviews and financial modelling provide clarity and confidence, while robust service and maintenance packages safeguard long-term performance.
Building a Resilient, Low-Carbon Future
Battery Energy Storage Systems are no longer a niche technology; they are a cornerstone of resilient, low-carbon energy strategies. As businesses face increasing pressure to decarbonise and future-proof their operations, BESS offers a practical, scalable and bankable solution.
By investing in battery storage, organisations can take control of their energy use, reduce costs, enhance reliability and contribute to a greener energy mix. With the right partner and a clear strategy, the path to energy independence is not only achievable but also commercially rewarding.
TSG Power stands ready to support this transition, delivering the infrastructure, expertise and innovation needed to power progress.
