Technically, a Battery Energy Storage System (BESS) is an electrochemical device that captures and stores electrical energy as chemical energy, which can later be converted back into electricity via a reversible chemical reaction. At its core, the system consists of battery cells—typically Lithium-ion in modern grid applications—organized into modules and racks. These are managed by a Battery Management System (BMS), which monitors the health of the cells, and an inverter, which converts the power from DC to AC.
The Danville 1 Battery Energy Storage System -- a Lightshift Energy project.
At its simplest, battery storage acts like a “bank” for electricity. While the power grid traditionally operates on a “just-in-time” basis—where electricity must be used the exact moment it is generated—batteries allow us to capture that energy and save it for later. We know batteries in our daily lives – from smartphones to television remotes – but now we have the capability to manufacture batteries that can support entire communities. By holding onto power until it is needed, battery storage ensures that electricity is available even when the primary source isn’t actively producing it.
This technology is becoming the “missing link” for a cleaner energy future, particularly for renewable energy like wind and solar. Because the sun doesn’t always shine and the wind doesn’t always blow, batteries push energy onto the grid during peak demand times because batteries charge at non-peak times. Ultimately, adding storage creates a more secure and reliable grid by ensuring that power is always available exactly when and where it is needed most. According to the U.S. Energy Information Administration (EIA), a record 15 GW of BESS capacity was added in 2025, and another 8.3 GW has already been added in the first 6 months of 2026, reaching nearly 52 GW of total U.S. battery storage capacity
For more information on battery projects in Virginia and in your locality, please visit the Virginia Solar and Storage Database put together by the University of Virginia’s Weldon Cooper Center for Public Service. The database provides an inventory of large-scale solar projects and battery energy storage systems proposed for siting approval at the local level in Virginia.
Nearly all large-scale BESS today use lithium-ion batteries, which are built from many small cells grouped into modules and housed in enclosures; however, two chemistries lead the market:
No single resource can guarantee that power is always available exactly when and where it is needed, but BESS can improve grid reliability by shifting when power is delivered. Charging when demand is low does not automatically mean a battery will discharge when demand is highest. When a battery charges and discharges depends on how its owner or operator runs it, usually guided by electricity prices, grid operator instructions, or utility contracts. Many batteries are operated to charge when electricity is plentiful and inexpensive, and discharge when demand and prices are high. This can help integrate wind and solar energy, whose output doesn’t always line up with peak demand.
As a result, battery storage can help lower energy costs. This concept has been seen extensively in Texas, where the rapid increase in solar generation and BESS to meet peak demand has resulted in decreasing energy costs during summer heatwaves in recent years.
The footprint of BESS is relatively small compared to large-scale wind or solar projects. According to the University of Michigan’s 2026 Planning & Zoning for Battery Energy Storage Systems: A Guide for Michigan Local Governments, a typical BESS requires 0.03–0.1 acres of land per MW, but total site area depends on local setback and buffer requirements. Battery projects can be standalone or co-located with solar, wind, or other generation and often share the same grid connection. Large-scale battery enclosures often resemble shipping containers arranged in rows, though some projects house batteries in a style similar to a warehouse.
When siting a BESS project, it is important to know that they will need access to power lines, and sites closer to substations are generally more cost-effective. Larger projects typically connect to transmission lines, while smaller projects may connect to local distribution lines. Because battery capacity declines over time and these systems are modular by nature, operators may replace enclosures or modules, or add new ones through a process called augmentation, often within the originally approved footprint.
This photo was taken at Dominion Energy’s 20 MW Dry Bridge energy storage facility in Chesterfield County, Virginia. On just a few acres, these modules strengthen Virginia’s energy grid on a daily basis by lowering the peaks and valleys of energy demand and supply.
Utility-scale battery storage works like a giant rechargeable bank account for the power grid. The primary way these projects make money is through energy arbitrage: they “buy” electricity when it is cheap (like in the middle of a sunny day) and “sell” it back to the grid when prices are high (like during the evening when everyone turns on their lights). Because batteries can respond in milliseconds, they are much more efficient at balancing the grid than traditional power plants.
Beyond just buying and selling power, these projects earn extra income by providing grid stability. Grid operators pay battery owners “insurance” fees to stay on standby, ready to jump in if a power plant fails or demand spikes suddenly. This combination of different paychecks—selling energy and providing backup services—is what makes the high upfront cost of the battery cells a profitable long-term investment.
EIA’s Annual Energy Outlook 2026 defines LCOS as the estimated cost to build and operate daily-use storage over a specified cost recovery period and estimates LCOS at $153/kWh, calculated based on a 30-year cost recovery period. Lazard’s 2026 analysis, which reflects projects being built today, estimates an unsubsidized LCOS of $210 to $292/MWh for a 100 MW, 4-hour standalone battery, or $148 to $209/MWh with the federal investment tax credit.
Large-scale BESS can generate significant local tax revenue relative to their small footprint. A 2025 Texas analysis estimated that a 100 MW storage project would pay a county $3.8 to $4.7 million in lifetime taxes, generally comparable to wind and solar once storage’s shorter project lifetime is considered. Actual revenue depends heavily on state and local tax treatment, however, since some states exempt or reduce taxes on storage equipment. In Virginia, localities may also adopt a revenue share of up to $1,400 per MW. BESS connected to the local distribution grid can also help utilities defer costly power line upgrades.
A November 2025 analysis by Strategic Economic Research for Clean Tomorrow, Comparison of Property Tax Treatment for Solar and Battery Storage in Seven States, modeled a hypothetical 200 MW solar plus 100 MW (400 MWh) BESS project in each state over 35 years. For Virginia, it estimated about $21.1 million in lifetime property taxes, roughly $600,000 a year. Of the seven states studied, Virginia ranked fifth, with totals ranging from about $6.8 million in Pennsylvania to $73.5 million in Ohio.
Battery Energy Storage Systems are becoming increasingly vital components of our energy infrastructure. These systems offer numerous benefits, including grid stabilization, enhanced renewable energy integration, and improved energy resilience. This document aims to provide Authority Having Jurisdictions (AHJs) with comprehensive guidance on best practices and recommendations for the siting and permitting of BESS in their communities. As BESS technology continues to evolve, it is essential for AHJs to stay informed about the latest developments and safety considerations. This document serves as a starting point for building the knowledge and expertise necessary to effectively regulate and manage BESS installations in your community.
BESS ordinances are not a one-size-fits-all approach. In fact, there are four distinct types of BESS ordinances that are widely identified:
For examples of model ordinances for BESS see:
When developing an ordinance for a BESS, it is imperative to include a comprehensive Emergency Response Plan (ERP). The ERP must include protocols for the safe shutdown, de-energization, or isolation of equipment during emergencies to mitigate the risk of fire, electric shock, or hazardous material release, proper emergency response steps, along with guidelines for the safe resumption of operations afterward. Below are some strategies to address and mitigate these concerns:
Setbacks are a common-sense measure to help maintain and make these projects the best neighbors possible for our communities. Ensuring that BESS enclosure have an additional setback from property lines and other structures ensures safety and allows neighbors to enjoy their property without even knowing a storage facility is in their neighborhood.
Setback from Occupied Structures: 100ft
Setback from Property Line: 10ft – 50ft
Within setbacks, planted buffers, or supplementing existing natural vegetative buffers, surrounding the project help ensure that BESS projects are shielded from view of neighbors and passersby. Keep in mind that trees, brush, and other similar vegetation should be at least 10ft away from the system as an added safety measure.
Proposed projects should submit thorough decommissioning plans as part of the site plan review to ensure that project land is returned to its original state or better when the life of a project ends. All costs associated with decommissioning are borne by the applicant/project owner. The decommissioning cost should account for all remediation activities, for inflation, administrative costs, as well as the salvage value of project materials.
Genuine outreach in the communities where a project is proposed is imperative. Speaking with and gathering input from neighboring landowners, county leaders, and community groups will result in the best project possible for the whole community. In addition to individual outreach, at least one community meeting should be held before any official public hearings, with neighbors invited.
Whenever possible, developers and Engineering, Procurement, and Construction (EPC) companies should aim to source goods and services as local to the project site as possible. The true economic benefits come from spending dollars with local businesses, magnifying the investment.
Once constructed, BESS projects might be visited once a month. If neighbors or local leaders bring traffic and road maintenance concerns, projects should include plans to mitigate traffic and road impacts.
BESS projects can and should be great economic drivers in rural Virginia. Entering into revenue-sharing or siting agreements is a great way to generate new tax revenue without additional demand for public services. This tax revenue can help lower taxes on citizens or fund road repairs, infrastructure, schools, or first responders. Special consideration for first responders should be considered during this process.
Above, guidance is provided on various aspects affecting BESS, but it’s crucial to reference additional resources for optimal management. Our guidance is grounded in the following references and resources.
This is very useful for engineers and developers to verify the effectiveness of the product’s protection against key issues, like fire.
Composed of six documents, these Standards depict and explain the unique properties that can alert people to hazards in the workplace and at home.
– (HB 891/SB 443): Makes utility-scale BESS a permitted accessory use in all zoning districts on any parcel with an approved special exception for a solar facility.
– (HB 895): Directs the Virginia Department of Energy, working with the Department of Environmental Quality (DEQ) and the Department of Fire Programs, to develop model ordinances for storage projects by December 1, 2026, and update them every three years.
Battery energy storage facilities do not require water to operate.
Unlike some forms of energy generation, battery storage systems do not rely on water for cooling or operation. BESS facilities store electricity in battery cells and release it when needed, meaning there is no ongoing water consumption. In addition, systems are housed in sealed enclosures designed to prevent any materials from escaping into soil
or groundwater.
Fires at battery storage facilities are extremely rare and systems are designed with multiple safety protections.
Modern battery systems include layers of fire prevention technology, such as temperature monitoring, automatic shutdown systems, fire suppression equipment, and spacing between units. In the unlikely event of an incident, the design of battery enclosures allows issues to be isolated to a single unit, preventing them from spreading to other containers.
BESS facilities produce minimal sound and operate quietly.
Battery storage facilities do not contain turbines, engines, or large moving machinery. The primary sources of sound are small cooling fans or inverters, which operate at low decibel levels comparable to common background noise. Proper siting and setbacks further ensure noise levels remain minimal for neighboring properties.
Battery storage systems are designed to operate safely and reliably across a wide range of temperatures.
Battery energy storage systems are housed in insulated containers equipped with thermal management systems that regulate internal temperatures. Heating and cooling systems maintain optimal operating conditions for the batteries, allowing them to function effectively in both hot summers and cold winters. These systems are commonly deployed in regions with much harsher climates than Virginia and are engineered to maintain reliable performance
year-round.
Battery storage actually improves grid reliability and stability.
Energy storage helps balance electricity supply and demand by storing excess power when it is abundant and delivering it when demand is higher. This helps utilities manage peak usage, stabilize voltage, and reduce the likelihood of outages.
