Battery Storage Strategy 101: Optimizing for Demand-Side Management

As Distributed Energy Resources (DERs) reshape the energy landscape, battery storage emerges as a critical asset in demand-side management (DSM).

With the flexibility to store and release energy as needed, batteries empower users to optimize costs, enhance power reliability, and reduce grid dependency. Success in DSM depends on selecting strategies that align with specific goals — whether they prioritize financial savings or energy independence.

#Understanding Time of Use (TOU) and Self-Consumption Strategies

Many battery systems incorporate Time of Use (TOU) and Self-Consumption strategies to support different DSM goals, especially for home batteries paired with solar. Battery strategy selection depends on your DSM objectives, utility rate structure, and energy sources. Use the comparison below to guide your selection:

#Time of Use (TOU)

TOU is designed for users with time-based utility rates. Rates vary throughout the day, with higher costs during peak hours when demand is high and lower rates during off-peak hours. In TOU, the battery charges during off-peak times, then automatically discharges during peak periods to reduce grid usage and save on energy costs.

Example:

• Morning and Evening (Peak Hours): The battery discharges to power the home, reducing reliance on costly grid energy.
• Night or Early Morning (Off-Peak Hours): The battery charges when energy prices are low, making it ready for the next day’s peak periods.

#Self-Consumption

Self-Consumption is ideal for users with solar energy. The battery prioritizes using locally generated solar power over grid electricity. The battery charges using excess solar power during sunny periods and discharges to power the home at night or on cloudy days, minimizing grid dependence.

Example:

• Daytime: The battery charges with surplus solar power after home consumption is met.
• Nighttime: The battery discharges to supply the home with stored solar power, reducing the need to draw from the grid.

#Key Operating Modes for Battery Optimization

Most battery systems offer three core modes:

• Charge: Stores energy for later use.
• Discharge: Powers connected systems with stored energy.
• Idle: Maintains the battery’s current state.

Selecting the right mode allows users to fine-tune battery performance, whether to cut costs, manage solar generation, or secure backup reserves.

#Optimizing Battery Modes with Texture’s Advanced Control Platform

With each battery manufacturer offering different APIs, standardized control across brands can be challenging. Texture’s platform unifies these strategies and operating modes, allowing seamless control through a single API. This empowers users to focus on their DSM goals without needing technical reconfiguration for each system. Texture’s future-proof solution adapts to evolving standards, ensuring that clients can deploy and scale assets to maximize cost savings and energy independence.

#Operating Mode Behavior Table

Use this table to guide your selection of the right mode for DSM success:

In addition to the operating mode there are additional parameters you can pass in:

• minimumBatteryReserve – Used when specifying discharge as the desired operating mode. This will be the value the backup reserve is adjusted to or minimum charge to reach. (Defaults to 20%)
• maximumBatteryReserve – Used when specifying charge as the desired operating mode. This will be the value the backup reserve is adjusted to or maximum charge to reach. (Defaults to 95%)
• enableGridInteraction – Whether or not the battery should attempt to import from (charging) or export to the grid (discharging). This flag isn't leveraged if idle is desired. (Defaults to false)
• executionPriority – The priority for the attempts at setting the operating mode. By default, we will attempt to execute the command via "grid_services" first, if applicable, falling back to "baseline" battery control. To bypass the "grid_services" attempt, set this to an empty array, or specify only ["baseline"]. The "baseline" priority is always attempted last (whether specified or not).

When enableGridInteraction is set to true, the battery operates in TOU mode, prioritizing cost savings by aligning with utility rate schedules. When set to false, Self-Consumption mode is used to maximize independence by prioritizing locally generated solar energy.

You can read more in our technical API docs here.

#Practical Applications with Texture: Maximizing Efficiency and Reliability

• Maximizing Solar Energy: Set enableGridInteraction to false to ensure the battery charges solely from solar, minimizing grid dependence.
• Peak Savings Strategy: With enableGridInteraction set to true, discharging during peak times reduces costs by using stored energy when utility rates are highest.
• Emergency Backup Preparation: Implement a minimumBatteryReserve to ensure critical systems stay powered during outages.
• Enhanced Stability with Reset Mode: Use the Reset mode to quickly revert to previous settings, maintaining reliable operations even during utility or system changes.

#Need Help?

If you need assistance configuring your battery system for demand-side management, please reach out to Texture’s dedicated support team here.