Original story: PV Magazine, Issue 06: The Hunt for High Efficiency

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Europe needs battery energy storage and the commercial and industrial (C&I) sector is poised to play a key role, writes James Allston, co-CEO and head of growth at feasibility modeling software provider Orkestra Energy. But to accelerate adoption at business sites, installation companies must clearly demonstrate the value of solar-plus-storage systems and focus on solving customer challenges.c

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The value of C&I storage

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Following a period of rapid growth, solar expansion in Europe has stalled. Solar markets across the European Union expanded by just 4% in 2024, according to SolarPower Europe’s latest EU Market Outlook for Solar Power report. This is in stark contrast to the average 40% annual growth seen each year since 2020.

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This slowdown reflects a decline in electricity market prices following 2022 spikes, as well as major shifts driven by high levels of renewable energy penetration across many European countries.

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The good news is that solutions are already known and proven.

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Battery Boom

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There is a saying about markets: “The best solution to high prices is more high prices.” Recent history for European electricity markets has shown this to be true – the market responded and fixed the problem with increased supply. But with much of that supply coming from renewables, it’s not just high prices but also low prices, and even negative prices that are creating both challenges and opportunities.

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It has been encouraging to see battery deployment gaining momentum. In 2024, nearly 22 GWh of battery capacity was added to European grids, representing a 15% increase, according to SolarPower Europe’s European Market Outlook for Battery Storage, published in May 2025. The report further highlights that in Germany, a remarkable 79% of residential solar systems are now sold with storage.

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While progress in deploying utility-scale and residential batteries is headed in the right direction, more must be done in one of the most promising segments: C&I. European C&I customers stand to benefit significantly from behind-the-meter (BTM) solar-and-storage systems, due to frequently large electricity loads and high energy costs.

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As component prices hit historic lows, the economic case is stronger than ever. Yet many businesses struggle to understand exactly where that value lies for batteries, leaving decision-makers hesitant to invest.

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Since its official launch in the United Kingdom in February, Orkestra Energy has been working to close that knowledge gap. A key part of this effort lies in understanding the intricacies of energy tariff structures.

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Energy Tariffs Matter

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If a solar company doesn’t understand energy pricing, it will struggle to sell commercial batteries.

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This is the blunt assessment drawn from five years of modeling behind-the-meter batteries. While there are exceptions, the principle holds true enough to serve as guidance for those developing batteries in the C&I sector.

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As Europe’s energy landscape evolves, most businesses remain on fixed electricity tariffs – pricing structures that limit the value solar-and-storage systems can provide.

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To accelerate flexibility and battery projects in the C&I sector, it’s crucial to support and educate customers in making the shift to time-of-use (ToU), passthrough, or dynamic tariffs. These more responsive pricing models not only reflect the true cost of electricity supply – helping markets self-correct during periods of high or negative prices – they also unlock significant cost savings when paired with BTM solar-and-battery systems.

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To demonstrate how critical tariff structures are to the business case for C&I battery installations, Orkestra Energy deployed its modeling platform to conduct an in-depth analysis of rooftop PV and on-site storage for UK businesses.

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The study modeled typical half-hourly electricity consumption profiles across 14 utility regions for two business types: a small enterprise and a large industrial customer. It tested a range of BTM system sizes, operational strategies, tariff structures, and geographic locations. The findings were eye-opening.

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Contrary to expectations, the net present value (NPV) of a solar-plus-storage system wasn’t always highest in the sunniest regions. In fact, due to hidden electricity network costs embedded in bundled tariffs and lucrative arbitrage opportunities, even notoriously cloudy locations like Scotland showed potential to offer strong returns for businesses investing in BTM solar and storage.

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The analysis also clearly showed that switching to a ToU tariff can boost the value of a solar-and-storage system considerably for C&I customers.

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In the small company example, the NPV of a system with 60 kW of solar and a 40 kWh battery more than doubles when operated under a ToU tariff, compared to the same system when configured to maximise self-consumption under a fixed or bundled tariff.

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For a larger industrial customer, the impact was even more pronounced. A system combining 1 MW of solar with a 240 kWh battery achieved an impressive 39% reduction in electricity costs, and the NPV was 18% higher than if the same system was optimised solely for maximising solar self-consumption.

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Solving problems

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For solar installation companies, the analysis revealed a compelling opportunity. Combining tariff optimization with battery operation for ToU arbitrage can deliver more value for the business while also increasing the system size. Greater value, more electricity cost savings, and bigger BTM system sizes – the definition of a win-win.

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Taking a holistic view of business customers’ needs is key to unlocking the full potential of solar and battery projects. For some, reducing emissions through maximizing solar self-consumption is the top priority. For others, ensuring a reliable electricity supply is critical, requiring systems to be sized and configured accordingly.

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And when cost cutting is paramount, selecting the right system under the right tariff structure becomes essential.

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The power of accurate financial modeling for C&I solar and storage systems has already been demonstrated in Orkestra Energy’s home market of Australia. By revealing the full value stack of solar and battery systems to C&I customers, Australia’s major solar installers, energy retailers, third-party financiers, and even utilities have driven rapid adoption.

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From just a few pilot projects, the C&I segment almost doubled in size from 2022 to 2023, up from 358 to 606 annual installations, and 160 MWh to 318 MWh of new battery capacity, according to Australia’s Sunwiz. By comparison, S&P Global forecasts just 50 MWh to 60 MWh of UK C&I battery deployment in 2025.

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It’s obvious that Europe needs energy storage and that the C&I market segment is set to be a major driver.

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Equipped with the right tools to demonstrate the value batteries can deliver to businesses, this potential can be realised.

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About the author

James Allston co-founded Orkestra Energy, a clean energy feasibility modeling software provider, in 2020. He previously served as managing director of New Energy Ventures, a consultancy focused on helping businesses improve financial performance through smarter energy decisions. Allston, a passionate advocate for transforming how businesses use energy, was also vice president and a founding member of the Australian Energy Efficiency Council. He is currently leading Orkestra Energy’s expansion into Europe, with a focus on the United Kingdom and Germany.

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