Can peak shaving with batteries pay back at your business?

Peak shaving uses stored electricity to reduce the power your site imports during a demand peak. UK Power Networks describes batteries as a way to flatten demand [S1]. In the stated illustration, supplying 40 kW for half an hour needs 20 kWh delivered. Whether it pays depends on measured use, your tariff and total costs. Checked October 2026.

Last checked 16 October 2026

What is peak shaving with battery storage?

Your site can draw a short burst of power when chargers, refrigeration and other equipment run together. A battery can supply part of that burst so the grid sees a lower demand. UK Power Networks describes storage as a means of flattening the load profile [S1]. Start with the shape of your demand rather than the size of the battery a salesperson offers.

Kilowatts (kW) measure power at a moment. Kilowatt hours (kWh) measure energy over time. For an assumed peak of 40 kW above your target lasting half an hour, energy delivered is 40 × 0.5 = 20 kWh. This is sizing arithmetic, not a specification: ask the designer to add losses, operating reserve and a recharge strategy.

How is peak shaving different from load shifting?

Peak shaving targets the height of demand. Load shifting changes when electricity is used; storage can support both tasks [S3]. A battery that covers a brief equipment start-up may be sized differently from one intended to move an entire evening’s charging into a cheaper purchasing period.

Ask the designer to plot your original import, target import and battery output on the same timeline. Include back-to-back vehicle arrivals and the time needed to refill the battery. Test a busy winter operating day, then test what happens when the battery is unavailable. Your operating plan needs a safe response to that condition.

Does peak shaving reduce your electricity bill?

Require a line-by-line reconciliation against your own bill. Do not copy overseas demand-charge examples into a UK proposal. In your comparison, separate electricity shifted to another price period, charging margin, changes agreed with your network operator and any genuine deferred connection expenditure.

For an assumed purchase price of 15p/kWh, delivered energy at an assumed 90% round-trip efficiency costs 15 ÷ 0.90 = 16.67p/kWh before maintenance. Against an assumed 30p/kWh purchase otherwise, the difference is 13.33p/kWh. Multiply only by the energy actually shifted. These are assumptions, not an available tariff or a promised reduction. Do not also count that same electricity as free solar energy.

Compare the battery against load management and a grid upgrade. If vehicles can charge later without missing departure, ask for a controls-only design alongside the battery proposal.

What could charging supported by a battery earn?

This is an illustration, not a quote for a battery supporting a commercial charging installation. All cost, price, use and share inputs below are assumptions. Results describe the combined project; they do not prove the battery itself earns an incremental return. Obtain a charger-only comparison before investing.

In these assumed arrangements, the fully funded provider pays, installs, owns and operates the equipment; you provide the site and receive a share. Part funded means shared capital and a larger host share, with ownership agreed in writing. Self funded means you buy the equipment and retain net income after operating costs.

Delivered energy is sessions × 20 × 365: 14,600 / 29,200 / 43,800 kWh/year. Gross sales equal delivered energy × £0.60. Operating net equals delivered energy × (£0.60 − £0.25 ÷ 0.90) − £2,000. That gives £2,704 / £7,409 / £12,113 a year, rounded. No additional tariff-shifting benefit is added.

Simple return on investment (ROI) is annual host net ÷ host capital × 100; payback is host capital ÷ annual host net. Identical percentage returns arise because the assumed part funded contribution and net share are both half the self funded figures. Fully funded has no host capital in this example, so no host payback is shown.

The illustration excludes financing, tax, VAT, battery replacement, degradation, insurance, rent, business rates, payment fees and unforeseen grid works. Deduct applicable costs from an actual offer. Long paybacks must be tested against replacement needs and the contract term. Check the calculation with your accountant.

Which funding model and site checks matter?

With fully funded equipment, scrutinise the share definition, land commitment, access and exit terms. With part funded equipment, document ownership and which costs reduce your share. With self funded equipment, retain the operating risks in your forecast. See battery costs and charging payback.

Your distribution network operator (DNO) runs the local electricity network. Ask the installer which connection application applies to the proposed battery and existing generation [S2]. G99 is the engineering recommendation used for relevant generation connections; discuss the route in the G98 and G99 guide. Include battery location, fire strategy, parking access, maintenance access, landlord consent and reinstatement in your survey brief.

What should you do next?

The Workplace Charging Scheme currently offers up to £500 per eligible socket and runs until 31 March 2027 [S4]. Check the charging installation’s eligibility separately; no grant has been deducted in this illustration.

Request measured demand analysis, a charger-only alternative and a combined-project model with replacement costs. Piggy Pineapple Ltd operates this referral service. We refer enquiries to installer partners and may be paid a fee. Our owner holds shares in at least one partner. We name the proposed partner and disclose any shareholding before passing on your details. Read how we work and get matched with an installer that covers your area.