Commercial BESS Battery Storage & Demand Charge Arbitrage Solver

Model utility peak demand reduction ($/kW), time-of-use energy rate spread arbitrage, Section 48 30%–40% ITC tax credits, and system IRR.

Battery Specs & Utility Tariff

Battery Power Inverter Capacity (kW)

Battery Energy Capacity (kWh - 2hr/4hr)

Utility Peak Demand Charge ($ / kW / month)

Average Monthly Peak Shaved (kW)

TOU Arbitrage Spread ($/kWh: On-Peak vs Off-Peak)

Turnkey Installed Cost ($ / kWh)

Inflation Reduction Act (IRA) ITC Tax Credit (%)

Annual Demand Charge Shaving Savings

$55,860 / yr

Annual Time-of-Use (TOU) Arbitrage Cash Flow

$23,652 / yr

Total Annual Utility Cost Reductions

$79,512 / yr

Net Turnkey Capex (Post-ITC 30% Credit)

$192,500 ($275,000 gross)

Simple Payback Period & ROI

2.4 Years (41.3% ROI)