Is Battery Storage a New Opportunity for Electrical Contractors?

shutterstock_2217932055 (1) (1)

Author: Brett Knox
December 3, 2024 - 3 MIN. READ

Demand for reliable battery storage solutions is rising across grid-scale, commercial, and residential levels. 

This new market could represent an exciting opportunity for electrical contractors willing to learn how to install and manage these energy storage solutions. 

Here’s what you need to know about the rapidly growing battery storage market and how to take the first steps to capitalize on this opportunity. 

What Is Battery Storage? 

Battery storage, or battery energy storage systems (BESS), refers to solutions designed to store electricity for later use. These systems are essential for balancing energy supply and demand, especially as renewable energy sources like solar and wind generate power intermittently. 

Thanks to recent innovations, back-up batteries are more affordable than ever and compatible with other electrification technologies. A popular example is solar energy systems that combine power generation with energy storage capacities to store solar power for later use. 

Battery storage capacity in the U.S. increased by over 87% between Q2 2023 and Q2 2024. This market is experiencing rapid growth on multiple levels: 

  • Grid-scale projects are on the rise to enhance grid stability and create energy reserves at the local level. 
  • Commercial and industrial projects, especially those involving renewable energy storage, play a significant role in the building electrification movement. 
  • The residential market also shows strong demand, offering entry-level opportunities for contractors interested in electrification and battery installation services. 

Why Is Demand Rising in the Residential Market? 

Home electrification is increasing electricity consumption, especially with applications like at-home EV charging or electric HVAC. 

For homeowners interested in residential electrification, whole-home battery storage is a great add-on for several reasons. 

  • The current energy grid uses an above-ground infrastructure that leaves it vulnerable to severe weather events. In fact, from 2000 to 2023, over 1,700 major power outages happened due to the weather. Homeowners are increasingly investing in battery storage to become independent from the grid and have a reliable source of power during outages. 
  • Utilities are increasingly rolling back net metering programs or reducing compensation for homeowners selling solar energy back to the grid. Investing in battery storage can be a better financial decision for these homeowners. 
  • In areas where net metering is still available, battery storage can give homeowners more flexibility and allow them to sell stored power when dynamic pricing is favorable or help power essential applications at the local level during outages. 
  • More utilities are offering time-of-use plans with cheaper electric rates at night. Whole-home battery storage allows homeowners to take advantage of these cheap rates to charge their batteries and avoid paying higher on-peak energy prices during the day. 

What Is Driving Demand for Commercial and Grid-Scale Battery Storage Projects? 

Electricity consumption will reach record highs by the end of 2024 and could reach 4,185 billion kWh in 2025. The electrification of buildings and transportation, combined with increased usage from the manufacturing sector and data centers, is behind this trend. 

For utilities, increasing power production capacities is a priority, but many organizations are also looking for more effective ways of storing and transporting energy. Back-up batteries create a buffer during times of high demand and allow utilities to store energy closer to the consumer instead of relying on an energy transportation system that can lose as much as 5% of the power produced. 

At the commercial level, the reasoning for adopting battery storage is similar to the reasons driving demand in the residential market. Building grid-scale energy storage gives building managers more control over energy costs for commercial electrification applications like fleet charging, public EV charging, and electric HVAC, on top of powering essential circuits during outages. 

With commercial solar installations increasing by 6% from 2023 to 2024, battery storage is also in demand from building managers looking to create self-sufficient buildings that can store renewable energy and use it later. 

Exploring New Opportunities for Contractors 

Focusing on battery storage installation can be lucrative for electrical contractors looking to pursue electrification opportunities. 

Plus, battery installation can lead to larger projects, including electrical infrastructure upgrades in homes and commercial buildings or the integration of renewables. 

Obtaining a NABCEP Energy Storage Certification can set you on the path to offering battery storage installation services, but you should also consider upskilling in areas like project management and renewables integration.  

Prepare for the Future of Electrification With Raiven 

As demand for battery storage continues to rise, installing and maintaining back-up batteries presents a valuable opportunity for electrical contractors. 

On top of upskilling, you’ll need to modernize a few business processes to get ready for this new service, including adopting a new and improved buying process. 

Raiven’s electrification store offers contractors access to parts and materials for modern electrification projects, along with pre-negotiated discounts and efficient purchasing tools. 

Gain access to pre-negotiated discounts of 7%-30%  from industry-leading manufacturers and distributors, including Alpscontrols, ChargePoint, EnelX/Juicebox, Ferguson, Grainger, Graybar, HD Supply, Home Depot, Lowe’s, Office Depot, Sunbelt Rentals, Schneider Electric, and more! 

Raiven is the go-to partner for electrical contractors, providing unbeatable prices on equipment, parts, and maintenance supplies. Our intuitive purchasing platform streamlines procurement for maximum efficiency. Other key benefits: 

Raiven is your one-stop shop to save time and money. Visit Raiven to learn more about saving and growing your profit margins with our buying program for contractors. 

Summary: Demand for battery storage is on the rise between grid-scale projects, commercial electrification, and the need for reliable back-up solutions in homes. For electrical contractors, battery storage represents a lucrative opportunity.