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Scope 2  ·  3.1.2

Storage

Deploying battery energy storage systems (BESS) at commercial and industrial facilities to shift electricity consumption, reduce demand charges, support renewable integration, and provide grid services. Storage is a key enabler of 24/7 clean power matching, resilience, and Scope 2 emissions reduction under market-based accounting.

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Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • Behind-the-meter lithium-ion BESS for peak shaving at high-demand facilities
  • Uninterruptible power supply (UPS) systems providing short-duration backup

Process

  • Analyzing utility bill data to identify demand charge reduction opportunity
  • Evaluating storage sizing and dispatch against time-of-use (TOU) rate structure
  • Assessing interconnection and permitting requirements with local utility

Financing

  • Internal capital with payback driven primarily by demand charge savings (3–7 years)
  • IRA Section 48 ITC (30%+) applied to standalone storage projects
  • Utility demand response program enrollment to generate additional revenue

Technology

  • Fundamental Technologies +
  • Multi-hour BESS paired with onsite solar PV for self-consumption optimization
  • DC-coupled solar-plus-storage for improved round-trip efficiency
  • Automated energy management system controlling storage dispatch

Process

  • Optimizing solar and storage dispatch to maximize self-consumption and minimize grid import
  • Participating in utility demand response programs via automated battery dispatch
  • Tracking storage contribution to Scope 2 market-based emissions reduction

Financing

  • Solar-plus-storage financed together via third-party PPA or lease structure
  • MACRS 5-year accelerated depreciation applied alongside ITC
  • State BESS incentive programs and utility storage rebates accessed

Technology

  • Market Standard Technologies +
  • Long-duration storage (4–8 hour) enabling load shifting across peak pricing windows
  • Storage integrated with EV fleet charging for depot load management
  • Advanced inverter with grid-forming capability for resilience and islanding

Process

  • 24/7 clean energy matching using storage to align consumption with renewable generation hours
  • Participating in wholesale market programs (capacity markets, ancillary services) via aggregator
  • Integrating storage into broader campus microgrid and building energy management strategy

Financing

  • Revenue stacking: demand charge reduction + DR + capacity market payments modeled in project finance
  • Third-party owned storage with shared savings agreement to eliminate upfront CAPEX
  • Green bond or sustainability-linked financing with storage performance KPIs

Technology

  • Above Average Technologies +
  • Multi-site storage fleet aggregated as virtual power plant (VPP) for grid services
  • Next-generation storage technologies (iron-air, flow battery) for multi-day storage
  • Storage integrated with V2G fleet and building loads as unified grid-interactive asset

Process

  • Dispatching storage portfolio for emissionality — discharging when grid carbon intensity is highest
  • Publishing verified 24/7 clean energy matching metrics in CDP and sustainability reports
  • Engaging utility and grid operator on storage role in distribution planning and grid stability

Financing

  • Monetizing full revenue stack: ITC + MACRS + DR + capacity + ancillary services + carbon credits
  • Portfolio-level project finance aggregating multiple sites for institutional capital access

Related Pathways

← All Pathways 2.1.1 Onsite Generation 2.1.3 Off-Site PPAs 2.2.2 VPPs