In the context of the energy and battery storage industry, arbitrage refers to the practice of buying electricity when prices are low (typically during off-peak periods) and selling or discharging stored electricity when prices are high (during peak demand periods), thereby generating a profit from the price difference.
How battery arbitrage works:
Charge the battery system from the grid or renewable source when electricity is cheap.
Store the energy in the battery.
Discharge the energy back to the grid or to a local load when electricity prices are higher.
