Energy storage systems can help reduce electricity costs in various ways. They enable time-of-use optimization by storing excess energy during low-demand periods and using it during high-demand periods, thus avoiding purchasing expensive electricity during peak rates.

They also help manage demand charges by discharging stored energy during peak periods, reducing the maximum power drawn from the grid. Additionally, energy storage systems can provide grid services such as frequency regulation and peak shaving, generating revenue or reducing costs for system owners.