SolarCity said it will offer Tesla battery-powered energy storage systems called DemandLogic to commercial customers. The company's move will help reduce electricity bills and provide electricity during an emergency.

SolarCity, the provider of energy services to businesses, home owners, government and non-profit organizations, said DemandLogic is available to business owners who plan for its installation from SolarCity and finance it through a lease contract or power purchase agreement.

The DemandLogic system will be installed without an upfront cost to be paid by the customers and the company will also price the battery system at around 20 percent less than the local utility's demand charges, which is calculated based on the maximum amount of energy used by a customer during a billing cycle. However, the DemandLogic system will not be able to provide the entire energy requirement of a business. As such, the customers will still receive utility bills for a part of electricity used.

"Utilities have altered their rate structures such that demand charges are rising faster than overall energy rates, and businesses are bearing the bulk of those increases," said Peter Rive, SolarCity's chief technology officer and chief operations officer. "Time is money, but so are control and predictability. Our storage systems can give businesses the tools to address all three-delivering immediate savings, protection against escalating demand charges and optional, grid-independent backup power in case of outages."

The DemandLogic includes batteries, which are about the size of a small refrigerator, and the relevant software. The batteries in the system are the same as those offered by Tesla in its electric vehicles.

SolarCity also confirmed that the batteries will be available only in areas where utility demand charges are relatively higher so that the company can guarantee cost savings. These areas include parts of California, Massachusetts and Connecticut.

The latest DemandLogic is currently available only for commercial use as it may not provide cost savings at home. However, with the rising energy price, homeowners will hope that the company develops a budget-friendly option for domestic use.

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