Plug-In Batteries Cut Costs for Brooklyn Bagel Shop

The system is elegantly simple. A 2.8-kilowatt-hour battery is connected to the Baconator, providing direct power during the morning rush when grid demand—and costs—are highest. Two additional batteries are paired with energy-intensive refrigerators in the front of the shop. The entire setup is managed by David Energy, a New York-based retail energy provider that supplied the batteries for free last August. Using its proprietary software platform, the company controls exactly when the appliances draw on backup power.

This strategy is particularly effective for equipment that runs continuously. As David Energy’s head of engineering, Vivek Bhagwat, explained, tapping batteries for the refrigerators—which are always humming—will be especially helpful during the hottest months when the shop’s air conditioners run around the clock. The goal is to lower the shop's peak grid needs, thereby avoiding the steep demand charges that disproportionately affect small businesses.

“We’re pretty optimistic about our ability to curtail energy in the summer, when it really matters most, through this machine.”

For Black Seed’s co-owner, Noah Bernamoff, the potential savings are a welcome relief. He notes that even modest benefits, when multiplied across the company’s 10 locations in New York City, could make a substantial difference. Saving just $80 per shop each month could add up to nearly $10,000 in avoided utility costs annually.

The initiative at Black Seed is part of a broader movement toward DIY energy technologies worldwide. While concepts like balcony solar systems are popular in Germany, they face regulatory hurdles in the United States. However, portable backup batteries from companies like Jackery and EcoFlow are becoming increasingly affordable and popular for households seeking blackout protection without installing fossil fuel generators. Startups like Pila Energy are also developing plug-in batteries meant for around-the-clock operation to reduce utility bills and keep critical appliances running during outages.

David Energy’s CEO, James McGinniss, believes this “do-it-yourself battery” strategy has serious potential to help small businesses combat rising electricity costs, both in New York City and beyond. The company has already expanded its pilot beyond bagel shops, installing batteries at fast-food restaurants, a day spa, and a dog grooming store, where a battery cushions the power draw of a fur-drying machine. As of mid-January, David Energy has signed deals to place plug-in batteries in approximately 50 locations, creating a collective energy storage capacity of over 500 kilowatt-hours.

For New York City businesses, installing traditional, wired-in battery backup systems has long been a challenge. The New York City Fire Department enforces strict fire-safety regulations on stationary lithium-ion battery installations, making them impractical for most building owners. While new rules from the Buildings Department last fall could improve cost-effectiveness, the process of navigating complex utility interconnection remains a significant barrier.

Plug-in batteries offer a clever workaround. They allow companies like David Energy to rapidly scale their storage under management without getting bogged down in the existing regulatory and utility interconnection processes. This approach aligns with David Energy’s long-term goal to “run the grid 24/7 on clean energy.” As solar and batteries have become “the cheapest electron we can create,” providing customers direct access to these technologies has become a core business priority.

“Because people like cheap energy.”

For David Energy, which competes with large utilities by purchasing electricity from wholesale markets and reselling it, the battery pilot represents a dual opportunity: saving customers money while creating a new revenue stream. While the financials of the no-cost battery program are not publicly disclosed, the model is built on expanding money-saving opportunities for customers and money-making ones for the business over time.

The experiment at Black Seed Bagels demonstrates a practical, scalable solution to a persistent economic challenge. By leveraging simple, portable technology, businesses can take control of their energy consumption and reduce operational costs without major infrastructure overhauls. The success of this pilot could signal a shift in how urban businesses, particularly in dense and regulated markets like New York City, approach energy management.

As David Energy continues to expand its program, the focus will remain on proving that these plug-in batteries can consistently pay for themselves. For small business owners operating on tight margins, the ability to save money on utilities—while simultaneously supporting a more resilient and clean energy grid—represents a powerful new tool for survival and growth in an increasingly expensive landscape.