Battery storage determines how well your microgrid performs. You use it to cut peak demand, support outages, and stabilize the facility. Good sizing and smart cycling give you predictable savings.

Battery sizing that matches your use case.

You size a battery for one primary purpose. Everything else follows from that purpose.

1. Peak shaving
   You look at the 15 to 30 minute window where your load spikes. You size the battery to cover the delta between your baseline and your peak. You match the inverter output to that peak. You use a narrow depth of discharge. This protects the battery.

   
   

2. Solar smoothing and time shift
   You size for daily charge and discharge. You focus on usable kilowatt hours. You set the inverter rating so that it can handle midday solar ramp plus facility load support. You model hourly solar patterns for the site.

   
   

3. Backup and outage support
   You size for critical load hours. You start with critical load kilowatts. You multiply by the number of hours you need to stay online. You add a reserve margin so you can handle inrush and motor starts.

   
   

4. Hybrid use cases
   Many sites want everything. You choose one anchor metric. Then you design the rest around that. Most commercial sites choose peak shaving as the anchor.

Cycle strategy that protects battery life

Cycle design determines lifetime cost.

1. Depth of discharge
   Shallow cycles extend life. Deep cycles reduce life. For commercial sites you keep average depth of discharge below 70 percent.

   
   

2. State of charge windows
   You lock the top and bottom bands. Most systems operate between 20 percent and 90 percent. This prevents accelerated degradation.

   
   

3. Ramp rate control
   Fast ramps reduce battery lifespan. The controller smooths ramps so the battery does not chase every load spike. You assign a maximum ramp rate.

   
   

4. Temperature management
   High temperature increases degradation. Low temperature reduces usable capacity. You keep the battery near manufacturer recommended temperature through HVAC or airflow.

   
   

5. Idle reserve
   You hold a fixed percentage of the battery for resilience. Many sites choose 20 percent. This prevents full depletion during outages.

Cost drivers you need to track

The cost of a battery is not just the equipment price.

1. Battery cells
   Lithium iron phosphate has stable pricing. Nickel manganese cobalt costs more. LFP is the dominant choice for commercial microgrids.

   
   

2. Inverters
   You size inverters for peak power, not for energy. Higher power ratings increase cost. Oversizing reduces efficiency.

   
   

3. Enclosures
   Outdoor enclosures cost more than indoor racks. Fire suppression and HVAC add cost. Local code also changes enclosure cost.

   
   

4. Installation and balance of system
   Cable runs, switchgear, breakers, and site layout drive installation cost. Rooftop locations increase cost. Ground pads reduce cost.

   
   

5. Controls and integration
   You need a controller to schedule charge and discharge, enforce constraints, and manage transitions. Controls usually account for five to ten percent of total cost.

   
   

6. Lifetime cost
   Cycle limits drive replacement timelines. You monitor throughput in megawatt hours. You track full equivalent cycles per year. You plan for replacement once throughput hits the design limit.

   
   

A simple example that shows sizing impact

Take a cold storage facility with a 1 megawatt peak. Baseline is 700 kilowatts. The peak lasts 20 minutes.

• Battery sized at 300 kilowatts power with 150 kilowatt hours energy covers the full peak.

• If solar is on site, the inverter supports load so the battery can discharge slower.

• If you oversize energy to 250 kilowatt hours, you add two to three hours of outage support for critical loads.

Where NextNRG fits

NextNRG optimizes battery sizing and cycling based on your top goal. If you want peak shaving, the team models your peak window. If you want resilience, the team models outage duration. The controller then enforces SOC limits and ramp rates so the battery delivers consistent value.
Battery storage is the core of any microgrid. When you size it correctly and cycle it with discipline, you get predictable savings and predictable uptime.