One of the biggest advantages comes when your utility provides a time-of-use rate structure. The electrical grid is a complicated beast, and utilities have an interesting problem on their hands on a daily basis. Most utilities have a diverse set of production facilities: coal, natural gas, wind, solar, and perhaps some hydroelectric. Some of these production techniques are more expensive than others, and we can’t rely on the cheapest ones at all hours of the day. Therefore, we often spin up expensive forms of production, like natural gas ‘peakers’, to accommodate voracious electricity demand ‘peaks’.
The utility doesn’t like doing this because it costs them a pretty penny. In areas where peak demand is a particular problem, utilities often disincentivize the use of electricity during these hours by offering a time-of-use rate structure. Under this structure, a customer pays less for electricity when it’s cheap to produce, and they pay more during the typical hours of peak demand.
Here’s where battery storage can be a big advantage. By storing electricity in batteries when it’s cheap and using that stored energy when grid electricity is expensive, a household or business can significantly reduce its utility bill. After a while the batteries will pay themselves off, and the utility customer continues to take advantage of the cheaper rate.