Brooklyn bagel shop cuts energy bills with innovative plug-in battery system

A Brooklyn bagel shop is pioneering a new approach to managing energy costs through an innovative plug-in battery program that could reshape how small businesses handle their electricity bills. Black Seed Bagels has partnered with startup David Energy to install three suitcase-sized batteries that power energy-intensive equipment like commercial ovens and refrigerators, significantly reducing the company’s peak electricity usage and monthly utility costs.

The batteries, provided free through David Energy’s pilot program, target “demand charges” – fees based on a business’s maximum power usage during any 15-minute period in a month. These charges can represent up to 50% of a commercial customer’s total electricity bill. By automatically switching to battery power during peak usage times, Black Seed aims to lower these expensive charges across its 10 New York City locations, potentially saving nearly $10,000 annually.

This “do-it-yourself battery” approach offers advantages over traditional wired battery systems, particularly in New York City where strict fire safety regulations and complex utility interconnection processes make conventional installations challenging. The plug-in batteries bypass these hurdles while providing backup power during outages. David Energy has already deployed similar systems at about 50 locations, including restaurants and service businesses, totaling over 500 kilowatt-hours of storage capacity.

The program represents a growing trend toward distributed energy storage that benefits both businesses and the broader electrical grid. As retail energy providers seek to manage wholesale electricity costs and participate in demand-response programs, these customer-facing battery networks create “virtual power plants” that can store energy when it’s cheap and reduce grid strain during peak periods, supporting the transition to cleaner energy systems.