Battery storage profitability

Battery storage revenues: BTM reduces costs, FTM generates revenue

Most providers sell hardware or electricity. CUBE CONCEPTS builds the system behind it.

200,000–300,000 €
FTM Revenue Potential / MW / Year
Guideline CUBE CONCEPTS
110 €/MWh
LCOS LFP System
KPMG AG, February 2026
2–4 years
Typical ROI Purchase
Guideline CUBE CONCEPTS
§118: Investment decision according to the AgNes draft before January 1, 2027 – yet 83 Days
Two revenue streams

Two sources of income – most people see only one

BTM – Cost reduction
  • ✓Peak Shaving – reducing the performance prize
  • ✓§19, paragraph 2, sentence 1 – Net cost reduction (until 2028)
  • ✓§118, paragraph 6 – 20 years exemption for electricity fed back
  • ✓Maximize PV self-consumption
FTM – Generating revenue
  • →FCR – Primary control output
  • →aFRR – Secondary regulatory performance
  • →mFRR – Minute reserve as an additional channel
  • →Spotarbitrage – fully automated
BESS battery storage system – front-of-the-meter

No either/or – Multi-Use combines both revenue sources simultaneously.

Business Case

Five factors determine your business case

This is relevant for you if you have a ≥ 500 kW grid connection (BTM) or can offer a regulated power output of ≥ 1 MW (smaller systems in a pool) – and want to understand the full revenue mix before making a decision.

01

Grid connection

BTM: from 500 kW. Regulated energy: Minimum offer of 1 MW, smaller systems included in the pool. Multiple locations can be bundled together.

02

C-rate

2h systems (0.5C) achieved around €259,000/MW in 2025, 1h systems around €151,000/MW (ISEA). For FCR, the regulatory authorities require a minimum activation time of 15 minutes and a 25% % power reserve, not a specific C rate. Incorrect design = no potential for profit increase.

03

Network operator

Grid fees, peak load periods, and connection conditions differ depending on the network operator; regulated energy prices apply uniformly nationwide. CUBE analyzes your network connection based on the specific requirements of the network operator.

04

Regulations

§118: 20 years exemption, according to the AgNes draft only for the investment decision before January 1, 2027, commissioning by August 4, 2029. §19 expires at the end of 2028. Those who plan too late will pay permanently more.

05

BTM/FTM-Split

The revenue mix is determined by how much capacity remains available for FTM marketing after BTM coverage (peak shaving, §19).

Case study

1 MW industrial storage in multi-use operation – in concrete terms

Basis: 1,000 kW / 2,000 kWh LFP system. Calculation example CUBE CONCEPTS with 220,000 € gross revenue, in the lower range of 200,000–300,000 €.

Position Amount / Year
FTM Gross Revenue / Year (FCR + aFRR + mFRR + Spot Arbitrage) 220.000 €
OPEX / Year (Operations, Marketing, IT) -55,000 EUR
Net Market Revenue / Year 165.000 €
Contracting – 0 € CAPEX, Off-Balance
Profit-Share Owners 25 % (based on net market proceeds after OPEX) €41,250 / year
Profit Share CUBE CONCEPTS 75 % (Open-Book) 123,750 € / year
Purchase – GIK ~ 250 €/kWh, 100 % own revenues
All net market proceeds to the owner €165,000 / year
Purchases – Return on Investment Metrics
Return on Investment
2–4 years
Reference IRR (KPMG, LFP 10 MW)
10,5 %
GIK
~ 250 €/kWh
Contracting – Starting point
CAPEX Owners
0 €
Profit sharing: 25% profit share on net market proceeds after OPEX · Off-balance sheet treatment possible

Source: Computational example by CUBE CONCEPTS; Reference IRR from KPMG comparison calculation (10 MW / 40 MWh, Feb. 2026) · All information provided without guarantee · Site-specific calculation based on your load profile.

Technology Comparison

What battery technology – and why LFP?

LCOS (Levelized Cost of Storage) is the right measure – not the purchase price. It takes into account investment costs, lifetime, degradation, and efficiency.

Parameter LFP Zinc bromide New in box
LCOS (€/MWh) 110 104 127
Degradation / Year 2,1 % 0,3 % 3,0 %
Service life 14 years 25 years 10 years
AC-AC efficiency 87 % 81 % 85 %

LFP: highest IRR of the KPMG comparison calculation (10.5 %) and fast amortization; ZnBr has the lowest LCOS.

* NIB = Sodium-ion battery (Na-ion). Basis: 10 MW / 40 MWh / WACC 6 % / 2 VZ/day. Source: KPMG AG, February 2026, p. 15–21.

Lithium battery modules (LFP) in production (symbol image)
Regulatory windows

What comes when – and what does that mean for your decision?

01.10.2026

MiSpeL: PV + FTM compatible

BNetzA determination: PV system can simultaneously generate FTM revenues without losing EEG subsidies; until 30.09.2027, in agreement with network and metering station operators.

31.12.2026

§118: Due date for investment decision (draft)

According to the AgNes planning draft, new storage facilities will receive the 20-year exemption only upon final investment decision before the announcement of the determination, planned for January 1, 2027.

31.12.2028

Section 19, paragraph 2, sentence 1 of StromNEV expires

Atypical network usage – last application deadline is September 30, 2028.

01.01.2029

AgNes: new network tariff system

According to the draft of 06.08.2026: Capacity price based on the ordered capacity, with a reference to a 2- to 3.5-fold cost of work; no follow-up for atypical network usage (BNetzA, GBK-25-01-1#3).

August 4, 2029

§118: Last day of commissioning

20 years of exemption from the network fee for electricity consumption, insofar as it is fed back into the grid. Legally limited in duration; not retroactively applicable. Existing connection: 6–12 months planning lead time.

Unused gross market revenue: approximately €17,000–25,000 per month at 1 MW (CUBE CONCEPTS guideline) · Source: §118 Paragraph 6 of the Energy Industry Act

Battery storage containers and inverter stations (symbol image)
Contracting vs. Purchase

Contracting or purchase – which is more economical?

Both models have access to the same revenue streams. The difference lies in capital investment and revenue sharing.

Contracting

  • ✓ 0 € CAPEX – no own investment
  • ✓ Off-balance sheet possible (accounting to be checked for each contract structure)
  • ✓ 25 % Profit Share of Net Market Revenues after OPEX
  • ✓ CUBE CONCEPTS operates and markets completely
  • ✓ Call option contractually anchored
Example 1 MW
€41,250 / year

Purchase

  • → Full self-investment (GIK ~ €250/kWh)
  • → On-Balance – Activation and depreciation
  • → 100 % of net market proceeds to the owner
  • → Reference IRR 10.5 % (KPMG comparison calculation LFP, 10 MW)
  • → Optional: CUBE CONCEPTS Takes Over Operations
Example 1 MW
€165,000 / year

“Our open-book calculation is not a bargaining position – it is the foundation on which partnership works.”

3 scenarios: Basic / Conservative / Optimistic – all open before your decision is made.

Manufacturer-independent Mind. 3 offers · LCOS-rated · no vendor lock-in. Both models.

Initial Orientation

What perspective applies to you?

Four areas of responsibility – each with a different perspective on the same business case.

You are responsible for investment decisions & balance sheet clarity

Reference IRR 10.5 % (KPMG, LFP 10 MW), available off-balance sheet (tested according to each contract structure), CAPEX relief through Contracting – or full control during purchase. Open book before your decision.

You are responsible for sustainability goals and CSRD reporting

Lower grid connection due to self-consumption of PV reduces Scope 2 emissions. Industrial electricity price eligible for investment in energy storage (CISAF, items 121–122). Auditable ESRS-E1 data points by default.

You are responsible for operational safety & plant engineering

FTM operation runs fully automatically – no interference with the operating processes. BTM dispatch coordinates CUBE EfficiencyUnit, not you.

You are responsible for energy procurement and electricity purchase costs

Peak shaving lowers the demand charge. Sections 19 and 118 reduce grid fees. FTM generates active revenue. All from one plant.

Common Objections

Common objections – direct answers

“The numbers sound good – but do they apply to our location as well?”

Location-specific – that’s why: Start with the load analysis. Our open-book calculation shows your numbers, not benchmarks. CUBE BatterySizer calculates 250+ operating variants based on your load profile.

“We already have offers from other providers.”

Have these offers been calculated based on your load profile – or based on their portfolio? CUBE CONCEPTS shows you the calculation in full before you commit.

“The market for balancing energy could change.”

Diversified multi-use strategy: FCR, aFRR, mFRR, spot arbitrage, peak shaving, §19. No single-channel risk. If one channel goes down, CUBE EfficiencyUnit automatically optimizes for the remaining revenue channels.

References

Tier-1 industrial companies – energy projects implemented across Europe

Over 150 realized PV projects, multi-site deployments across Europe. Now battery storage – on the same foundation, with the same ambition.

Magna Valeo Tenneco ITW voestalpine

Energy projects Europe-wide

Frequently Asked Questions

Frequently Asked Questions about Battery Storage Returns and Profitability

Next step

Submit your load profile – free potential analysis

Your lead generation is the foundation. We calculate based on the specific location – no portfolio benchmarks, no blanket statements.

1

Submit load profile
(15-minute data, 12 months)

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2

Analysis
(5 business days)

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3

Open-book accounting
– Your decision

Submit your load profile – free potential analysis

§118: Investment decision according to the AgNes draft before January 1, 2027 · yet 83 Days

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