Battery energy storage systems for businesses: key risks and considerations
As businesses look for ways to manage energy costs, strengthen resilience, and make more of their renewable energy investments, battery energy storage systems are becoming an increasingly important part of commercial energy strategies.
Often installed alongside solar panels, a battery energy storage system, or BESS, stores excess electricity so it can be used when energy demand is higher. This can help businesses increase their use of self-generated electricity, manage peak tariffs, reduce reliance on the grid, and improve energy security.
“Our commercial customers use batteries to improve self-consumption, manage peak tariffs, and add resilience. BESS storage is only going to become more popular as energy tariffs increase and the payback from an initial investment in the systems improves.”
James Healey, Lead Renewable Energy Surveyor at NFU Mutual
Installing a battery energy storage system, however, can change the risk profile of a site. Businesses should understand how the system could affect their property and operations and consider how those risks will be managed from the earliest stages of planning.
What is a battery energy storage system?
A battery energy storage system stores electricity so it can be used at another time. For example, a business may use battery storage alongside solar panels to store excess electricity generated during the day and use it later when energy demand is higher.
For businesses facing fluctuating energy costs, concerns about interruptions to supply or growing sustainability ambitions, battery storage can offer operational and financial benefits.
What should businesses consider before installing battery storage?
Before investing in a battery energy storage system, businesses should consider:
- the system’s design and proposed location
- its separation from buildings and other important assets
- fire safety and emergency response planning
- the experience and competence of manufacturers and contractors
- inspection and ongoing maintenance requirements
- the potential effect of an incident on day-to-day operations
- relevant insurance and risk management considerations.
Why are businesses investing in battery storage?
For businesses facing fluctuating energy costs, concerns about supply interruptions or growing sustainability ambitions, battery energy storage systems can offer several advantages.
According to NFU Mutual's renewable energy specialists, businesses are increasingly using battery storage to improve self-consumption of generated electricity, manage peak tariffs, and strengthen operational resilience. As energy costs continue to rise, battery storage is expected to become an increasingly attractive investment for many organisations.
Are battery energy storage systems safe?
While battery energy storage systems can deliver significant operational and financial benefits, they also introduce risks that businesses may not have encountered before.
One of the most significant considerations is fire. Battery fires can be complex and difficult to control. If a system is not appropriately located and managed, an incident could cause extensive damage to buildings, equipment, and surrounding operations.
Early planning is therefore critical. Factors such as system design, location, and separation from buildings should be considered before installation begins, rather than once work is already under way.
A carefully positioned and professionally installed battery energy storage system is less likely to expose a business to unnecessary risk. Appropriate positioning can also help to limit the consequences if an incident occurs.
Planning a safe battery storage installation
As with any major infrastructure investment, the quality of installation and ongoing management can significantly affect the safety, reliability, and performance of a battery storage system.
Businesses should work with reputable manufacturers and experienced contractors who understand both the technology and the evolving standards surrounding its use.
Battery technology continues to develop, alongside relevant industry guidance and best practice. Businesses should therefore choose partners who remain informed about current safety and insurance considerations.
Battery storage maintenance and ongoing management
Battery energy storage systems should not be treated as “fit and forget” assets. Regular inspections, planned maintenance, and clear operating procedures all play an important role in supporting long-term safety and performance.
“Renewable technologies are not ‘fit and forget’ assets. Like any critical infrastructure, they need proactive management and maintenance to achieve reliable performance and long-term value.”
James Healey, Lead Renewable Energy Surveyor at NFU Mutual
A proactive maintenance strategy can help businesses identify issues early, reduce the likelihood of disruption, and protect the value of their investment.
Considering a battery energy storage system?
Getting specialist guidance at an early stage can help you understand the safety, operational, and insurance considerations associated with your proposed installation.
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How battery storage can affect business resilience
Businesses should consider more than the battery technology itself. It is also important to understand how the system could affect day-to-day operations.
For many organisations, a battery energy storage system becomes an integral part of their wider energy strategy. An incident involving the system could therefore have consequences beyond damage to the equipment, including operational disruption, reduced productivity, and additional costs.
Battery storage should consequently be considered as part of wider business continuity and resilience planning.
Frequently asked questions about battery energy storage systems
What does BESS stand for?
BESS stands for Battery Energy Storage System. It is a system that stores electricity so it can be used at another time.
What are the benefits of battery storage for businesses?
Battery storage can help businesses make greater use of self-generated electricity, manage peak tariffs, reduce reliance on the grid, and improve energy resilience.
Are battery energy storage systems safe?
The safety of a battery energy storage system depends on factors including its design, location, installation, and ongoing management. Businesses should use reputable manufacturers and experienced contractors, plan for emergencies, and establish appropriate inspection and maintenance arrangements.
What are the risks of battery storage systems?
Fire is one of the most significant risks because battery fires can be complex and difficult to control. An incident could also damage surrounding property, disrupt operations, reduce productivity, and create additional costs.
Do battery energy storage systems require maintenance?
Yes. Regular inspections, planned maintenance, and clear operating procedures have an important role in supporting the long-term safety, reliability, and performance of battery storage systems.
Can battery storage affect business insurance?
Installing a battery energy storage system can change the risk profile of a site. Businesses should seek appropriate guidance to understand the insurance and risk management considerations associated with an installation.
Looking ahead
Battery energy storage systems are expected to play an increasingly important role in helping businesses manage energy costs, support sustainability objectives, and strengthen operational resilience.
Businesses are likely to achieve the greatest benefit by taking a balanced approach that recognises both the opportunities and the responsibilities associated with the technology.
Seeking expert guidance, investing in effective risk management, and planning for the long term can help businesses approach battery storage with confidence and ensure the investment supports a more resilient future.
