Agile Advantage - Unlocking full value from solar & storage: The business case for batteries

Summary

At Agile Energy, we see first-hand how Australian businesses are navigating rising energy costs, volatile tariffs, and growing pressure to decarbonise.

Over the past 24 months, average wholesale electricity prices have risen by more than 35%, and demand charges can account for up to 40% of a commercial electricity bill.

Solar PV has become an essential tool, but PV alone doesn't always align with operational needs. Batteries unlock the full business case: turning solar into a controllable asset that reduces peak demand charges, protects against network risks, and opens up new revenue streams.

Our experience in Sydney and across Australia shows that pairing solar with batteries can shorten project payback from 5-7 years (PV only) to 3-5 years (PV + storage) especially when batteries are optimised for demand savings, tariff management, and participation in demand response and VPPs.

How Batteries Enhance Solar ROI

While solar remains an effective means of reducing energy consumption, its limitations are increasingly apparent. Midday generation does not align with evening demand peaks, export restrictions constrain system design, and network demand charges remain a persistent cost driver.

Batteries address these gaps by:

• Capturing excess PV for use during high-cost periods (peak rates can be 2-3x higher than off-peak)

• Reducing maximum demand charges, often saving businesses 10-25% on network costs

• Enabling larger PV installations by mitigating export constraints, allowing systems to increase PV penetration from 30-40% of load to 70-80%

• Providing resilience during outages an hour of downtime can cost tens of thousands of dollars in manufacturing or cold storage

• Facilitating participation in market programs, including demand response and VPPs, which can generate $50-$150/kW per year in additional value

This combination transforms solar from a static generation asset into a flexible, revenue-optimising solution.

Where the Case is Strongest

Batteries deliver the greatest value in sectors with high load variability, high cost of downtime, or tariff structures that penalise peaks. Agile Energy has found particularly strong returns in:

• Cold storage and food processing: refrigeration plants can cut demand charges by 15-20% annually

• Manufacturing plants: offsetting machinery start-up surges avoids penalties and reduces downtime risk

• Retail and EV charging precincts: load shifting can cut evening peak costs by 30-40%, while batteries support charging growth

Incentives and Value Stacking

Well-structured projects stack multiple value streams, supported by government programs and market participation. Agile Energy helps clients capture:

• State rebates - e.g. NSW battery incentive and federal rebate

• Renewable Energy Certificates (STCs & LGCs) - often covering 20-30% of system costs

• Demand response & VPP payments - providing annual revenues of $5,000-$50,000 depending on site size.

• Tariff reclassification benefits - shifting to demand-based tariffs can reduce total spend by 10-15%

• Green finance & accelerated depreciation - helping free up capital while improving tax outcomes.

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By ensuring these streams complement rather than overlap, Agile creates conservative, CFO-ready business cases that survive scrutiny at board level.

Agile Energy's Framework

We apply a disciplined approach to ensure financial and operational results:

1. Site screening and tariff assessment - benchmarking against over 1,000 + C&I profiles nationwide

2. Interval data modelling & battery right-sizing modelling savings across different dispatch logics

3. Financial sensitivity analysis - stress-testing assumptions under varying tariff and demand conditions

4. Technology selection & installation - leveraging top-tier OEMs with proven warranty and service records

5. Performance monitoring & optimisation - clients typically achieve 5-10% higher realised savings vs industry averages due to Agile's continuous optimisation.

Conclusion

Agile Energy is helping C&l clients transform energy into a competitive advantage. Integrated solar and storage reduces costs, protects operations, and accelerates sustainability targets - all while delivering strong, board-ready financial returns.

With paybacks now achievable in 3-5 years and battery prices falling by around 8% per annum, battery adoption is no longer a question of if, but when.

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