As electricity tariffs become increasingly complex and energy costs continue to rise, load shifting is emerging as one of the most practical ways for small and medium-sized commercial users to reduce their utility bills. For many businesses, installing a small-scale commercial energy storage system offers an effective and flexible way to shift energy use, improve grid independence, and optimize solar self-consumption.
This article explains what load shifting is, how it works with battery storage, and why small-scale systems — typically under 200 kWh — are becoming the preferred choice for commercial facilities, offices, and small factories.
1. Understanding Load Shifting
Load shifting means moving electricity consumption from periods of high demand (and high prices) to periods of lower demand (and lower prices). Instead of changing overall energy use, it simply changes when energy is consumed.
For example, a small manufacturing site may run its machines continuously during the day, but electricity costs are highest between 4 p.m. and 9 p.m.. By charging batteries in the morning or midday — especially when solar PV generation is available — and discharging during evening peak hours, the business can significantly reduce its utility bill.
Key Benefits of Load Shifting
- Lower peak-demand charges
- Better use of onsite renewable generation
- Reduced dependency on unstable grid tariffs
- Improved power quality and supply reliability
Load shifting does not require behavioral changes from staff or operations — it’s fully automated once the battery system is properly configured.
2. Why Small-Scale Commercial Systems Are Gaining Popularity
Large-scale energy storage systems (ESS) have been widely discussed in the utility and industrial sectors, but smaller systems — typically 30 kWh to 200 kWh — are now driving the growth of commercial storage worldwide.
Here’s why small-scale solutions are attractive:
- Lower entry barrier – Easy to install, minimal site preparation
- Scalable – Units can be added later to expand capacity
- Flexible operation – Can combine peak shaving, load shifting, and backup
- Regulatory simplicity – Easier approval and interconnection processes
- Faster ROI – Shorter payback periods for sites with time-of-use tariffs
These systems are ideal for small factories, supermarkets, restaurants, schools, and office buildings — facilities with predictable daily load profiles and defined operating hours.
3. How Load Shifting Works in Practice
Load shifting relies on the battery management system (BMS) and energy management controller (EMS) to decide when to charge or discharge energy. The strategy depends on tariff structure, solar generation, and load demand.
Typical Operation Example:
| Time | Operation | Energy Source | Purpose |
|---|---|---|---|
| 9:00 – 14:00 | Battery charging | Solar PV / grid (off-peak) | Store low-cost energy |
| 14:00 – 18:00 | Discharging | Battery → load | Offset peak energy cost |
| 18:00 – 22:00 | Continuous discharge | Battery → load | Reduce demand charges |
| 22:00 – 7:00 | Recharge | Grid (off-peak) | Prepare for next cycle |
Integration with Solar PV
When combined with PV systems, batteries store excess midday solar power and release it during the evening. This boosts solar self-consumption rates and reduces energy exported to the grid at low feed-in tariffs.
4. Components of a Load Shifting System
A small-scale commercial storage solution typically includes the following components:
- Battery Pack (LFP or NMC chemistry)
Provides energy storage. LFP (LiFePO₄) is preferred for its thermal stability and long cycle life. - Battery Management System (BMS)
Protects cells from overcharge, over-discharge, and imbalance. Ensures safe operation and accurate SOC (state of charge) estimation. - Inverter / Power Conversion System (PCS)
Converts DC from batteries to AC for loads. Bidirectional models handle both charging and discharging automatically. - Energy Management System (EMS)
The “brain” of the system — monitors load patterns, grid tariffs, PV generation, and battery status to optimize operation in real-time. - Monitoring & Control Interface
Enables remote configuration and performance tracking, often via cloud platforms or mobile apps.
5. Load Shifting Strategies
The optimal strategy depends on your tariff type and energy profile. Below are common strategies used by small-scale commercial systems:
a. Time-of-Use (TOU) Optimization
In markets with clear peak and off-peak pricing, the EMS automatically schedules battery charging during cheap periods and discharges during expensive ones.
- Example:
- Off-peak tariff: $0.10/kWh (nighttime)
- Peak tariff: $0.35/kWh (afternoon)
→ Savings achieved simply by shifting 50–100 kWh daily.
b. Solar Self-Consumption Boost
For facilities with rooftop PV, batteries capture midday surplus energy and use it after sunset, reducing grid imports.
This is especially valuable when feed-in tariffs are low or net metering is unavailable.
c. Demand Charge Management
Some utilities charge businesses based on maximum power demand (kW). By discharging batteries during load spikes, systems can smooth power profiles and avoid high demand peaks — complementing load shifting.
d. Backup Integration
Many small businesses also use their ESS for backup power. Load shifting operation can easily switch to backup mode during outages, enhancing system value without additional hardware.
6. Technical Considerations for System Design
Designing an efficient load-shifting system requires careful attention to several parameters.
a. Battery Capacity (kWh)
The energy capacity determines how long the system can sustain loads during peak hours. For example:
- A 100 kWh system can discharge 25 kW for 4 hours.
The right size depends on the duration and magnitude of the peak period.
b. Power Rating (kW)
The inverter or PCS power determines how quickly energy can be discharged. It must match the site’s load profile and response needs.
c. Cycle Life and Depth of Discharge (DoD)
Frequent daily cycling requires batteries with high cycle endurance (≥ 6000 cycles). Using 80–90% DoD maintains performance over many years.
d. Safety and Certification
For commercial applications, safety standards such as UL 9540, IEC 62619, and UN 38.3 are essential to ensure reliability and insurance compliance.
e. System Integration
Proper coordination between PV, battery, and load via EMS software is key to achieving optimal results. Systems should support real-time tariff import and smart grid interaction.
7. Typical Use Cases
1. Small Manufacturing Workshop
- Challenge: High power use during late afternoon shifts
- Solution: 150 kWh battery discharging from 4 p.m. to 9 p.m.
- Result: Up to 25–30% reduction in peak energy costs
2. Supermarket or Retail Chain
- Challenge: Cooling systems and lighting increase peak demand
- Solution: 100 kWh storage for load shifting + partial backup
- Result: Lower grid demand, stable operation during outages
3. School or Office Building
- Challenge: Daytime occupancy with solar PV available
- Solution: 60 kWh system storing midday PV surplus
- Result: Increased solar utilization from 60% to over 85%
8. Challenges and Best Practices
While load shifting provides clear economic benefits, achieving consistent performance depends on proper system setup and maintenance.
Common Challenges:
- Inaccurate load forecasting
- Poor inverter–battery communication
- Under-sized systems
- Lack of tariff updates in EMS software
Best Practices:
- Use data logging for at least one month before system sizing
- Choose certified battery modules and inverters
- Configure automated tariff-based control schedules
- Maintain regular firmware and software updates
- Train users on monitoring and alerts
A well-managed small-scale ESS can maintain over 90% operational efficiency in daily load shifting cycles.
9. The Broader Impact: Toward Smarter Commercial Energy
Load shifting does more than reduce energy bills — it contributes to a smarter, more flexible grid. By flattening demand peaks, small-scale commercial storage systems help utilities balance supply and demand, reduce grid strain, and enable higher penetration of renewable energy.
For small businesses, these systems represent energy independence: the ability to control when and how electricity is used, regardless of market fluctuations.
Small-scale commercial storage systems are transforming how businesses manage energy. Through intelligent load shifting, companies can cut costs, enhance sustainability, and gain operational resilience — all with manageable investment and minimal disruption.
As energy markets evolve, load shifting will continue to grow from a cost-saving tactic into a core strategy of smart energy management. For distributors, integrators, and facility managers, now is the time to understand how to design, operate, and optimize these systems to stay ahead in the distributed energy revolution.
