What does an industrial storage system cost – and what does it offer?
An industrial storage system currently costs around €250 per kWh for capacities of up to 2 MWh and €175 to €200 per kWh from 5 MWh, depending on cell chemistry and location. Whether it pays off is shown by LCOS, internal rate of return and payback period based on your own 15-minute load profile. With Contracting, there is no investment.
LFP turnkey
KPMG AG, February 2026
KPMG comparison calculation
CUBE CONCEPTS benchmark
CUBE bears the investment
§118: Investment decision according to the AgNes draft before January 1, 2027 · Commissioning by August 4, 2029
01 – Cost structure
What are the CAPEX and OPEX of an industrial storage system?
Most providers sell either hardware or electricity. CUBE CONCEPTS builds the system behind it.
The total cost of an industrial storage system consists of one-time capital expenditures (CAPEX) and ongoing operating costs (OPEX). This distinction is relevant for the choice of model, balance sheet treatment and profitability calculation.
CAPEX – One-time investment costs
- ✓BESS hardware (battery, inverter, container)
- ✓Connection to the grid and grid connection request
- ✓Planning, Engineering, Approvals
- ✓Installation and Commissioning
- ✓CUBE EfficiencyUnit (Control System)
- ✓Prequalification for balancing energy markets
OPEX – Ongoing operating costs
- ✓Maintenance and Inspection
- ✓Operational management and monitoring
- ✓Market connection and bid submission
- ✓Insurance
- ✓Degradation management
- ✓Reporting and Documentation
Costs per kWh and MWh by size, as of October 2026
Investment costs for storage systems have recently decreased significantly, which has improved profitability (KPMG, February 2026). Larger systems also benefit from economies of scale.
| Size (performance / capacity) | Turnkey investment | per kWh | per MWh |
|---|---|---|---|
| 750 kW / 1500 kWh | ~375000 € | ~250 € | ~250000 € |
| 1 MW / 2 MWh | ~500000 € | ~250 € | ~250000 € |
| 5 MW / 10 MWh | ~2 million € | ~200 € | ~200000 € |
| 10 MW / 40 MWh | ~7 Mio. € | ~175 € | ~175000 € |
* Guideline values CUBE CONCEPTS, October 2026 (project experience 2025/2026): around €250 per kWh up to about 2 MWh, from 5 MWh onwards due to scale effects €175 to €200 per kWh, corresponding to €175,000 to €200,000 per MWh. The KPMG comparison calculation (February 2026) sets €250/kWh for LFP. All values are indicative; manufacturer-independent tender with at least 3 offers, LCOS-rated. With BESS Contracting, there is no investment.
CAPEX alone does not tell you anything about profitability. The CUBE BatterySizer calculates LCOS, IRR and payback based on your actual load profile.
Submit load profile →02 – LCOS
What is LCOS – and why is it the central benchmark indicator?
LCOS (Levelized Cost of Storage) summarizes all the costs of a storage system over its lifetime and relates them to each MWh discharged. This makes it possible to compare technologies fairly.
LCOS reference value
110 €/MWh
LFP Battery Storage · KPMG AG, Feb. 2026
The decisive comparison criterion – not the purchase price.
LCOS formula: LCOS = present value of all expenses over the lifetime (investment, operation, charging electricity) ÷ present value of the energy discharged. Key influencing factors: full cycles, degradation (LFP: 2.1 %/year), lifetime (LFP: 14 years), efficiency and cost of capital (WACC).
Technology comparison by KPMG AG, Feb. 2026
| Key figure | LFP Standard | ZnBr | Sodium-ion battery (NIB) |
|---|---|---|---|
| LCOS (EUR / MWh) | 110 | 104 | 127 |
| IRR | 10.5 % | 9.5% | 7.2% |
| NPV (Reference case, kEUR) | 2802 | 5076 | 601 |
| Degradation / Year | 2.1% | 0.3% | 3.0% |
| Service life | 14 years | 25 years | 10 years |
| AC-AC efficiency | 87% | 81% | 85% |
| Investment (€/kWh) | 250 | 360 | 275 |
* KPMG AG, Investment Case: Stationary battery storage, February 2026. Pages 15–21. Reference case: 10 MW / 40 MWh, 2 full cycles/day, WACC 6 % (real), project-specific (unlevered). Indicative.
LFP – Lithium-Iron Phosphate
Highest IRR of the KPMG comparison calculation (10.5 %) with an LCOS just above ZnBr. High cycle stability (up to 10,000 cycles according to KPMG/manufacturer’s specifications), low degradation (2.1 %/year), thermally stable. Standard technology for industrial storage from 750 kW.
ZnBr – Zinc bromide
Lowest LCOS in the comparison calculation (104 €/MWh), designed for four to twelve hours. According to KPMG, no fire risks; installation is also possible indoors. Lowest degradation (0.3 %/year); highest NPV. Attractive for arbitrage and self-consumption.
NIB (sodium-ion battery) – under observation
Emerging technology, currently LCOS of €127/MWh; according to KPMG, it could reach a similar profile to LFP in the medium term. In 2026 not yet a standard product for large-scale industrial storage. CUBE CONCEPTS actively monitors market developments and evaluates it in the manufacturer-independent tender with at least 3 offers, LCOS-rated.
03 – ROI & payback
When is an industrial storage system worthwhile – and what does KPMG have to say about it?
In February 2026, KPMG published an investment case for stationary large-scale battery storage systems. In the simplified comparison calculation (10 MW / 40 MWh, pure arbitrage, WACC 6 %), all three technologies achieve a positive net present value; LFP achieves the highest IRR.
10.5 %
IRR
LFP · KPMG comparison calculation for 10 MW
2802
NPV in kEUR
Reference case LFP 10 MW
2–4
Years to payback
CUBE CONCEPTS benchmark, Multi-Use 1 MW
Value lever 1 – FTM market
200,000–300,000 €
FTM gross revenues / MW / year · CUBE CONCEPTS benchmark
FCR + aFRR + Spotarbitrage, mFRR as a complementary channel. aFRR was the strongest channel in 2025; aFRR revenue grew by 39 % (ISEA Battery Revenue Index). FTM revenue amortizes the system.
Net FTM after OPEX deduction
145,000–245,000 €
Net Market Revenue / MW / Year after OPEX
FTM gross (200k–300k) minus OPEX (55,000 €/year/MW) = net market revenues. In BESS Contracting: your share = 25 % = around 36,000–61,000 €/MW/year. With a purchase: 100 % goes to you.
Example calculation · BESS purchase
Payback of an industrial storage system with 1 MW / 2 MWh
* All values are indicative. BTM savings from peak shaving, §19 (2) and, from 2029, AgNes come on top and shorten the payback period. With BESS Contracting there is no investment: your share is approx. 36000–61000 € per year, and 100 % of the BTM savings remain yours. The exact calculation for your site is provided by the open-book calculation based on your load profile.
Value lever 2 – BTM: Lower energy costs
Peak Shaving – reduces the performance fee by capping peak loads. §19, Sec. 2, Sentence 1 Atypik – Net tariff reduction until 31.12.2028 (last application deadline: 30 September 2028). AgNes from 01.01.2029 – according to the draft, capacity fee based on the ordered capacity; reference to the 2- to 3.5-fold labor cost; the storage unit keeps the reference below (BNetzA, GBK-25-01-1#3). Self-consumption optimization with existing PV (since MiSpeL, Oct. 2026: FTM+BTM simultaneously). Not quantified separately – location-dependent, modeled in BatterySizer.
Grid fee advantage §118 – investment decision before 1.1.2027 (draft), commissioning by 4.8.2029
20 years of grid fee exemption
§118, paragraph 6, EnWG: Exemption from network charges on electricity consumption, insofar as the electricity is fed back into the grid – a cost advantage, not a market revenue. According to the AgNes draft, only with a decision on investment before the determination is announced (planned for January 1, 2027); without exemption, new storage facilities will pay a capacity fee starting in 2029 (BNetzA estimate 4–7 €/kW per year). Planning for connection to the grid: 6–12 months. The bottleneck for new connections: In 2025, only 8 % of the connection requests for battery storage were approved in the distribution network (BNetzA/SMARD).
20 years
Investment decision before 1.1.2027 (draft), commissioning by 4.8.2029
0 years
Deadline missed – no advantage; from 2029 new storage fee
Practical example – anonymized
Cost of delay quantified: 1 MW industrial storage
lost per month
if the deadline is missed
with a 1-year delay
* CUBE CONCEPTS, anonymized C&I practical example (gross revenue around €240,000/MW/year) · §118: AgNes draft determination of 06.08.2026
§118: investment decision before 1 January 2027 according to the AgNes draft – Planning takes 6–12 months. Let us calculate your schedule now.
Check the schedule →04 – Models & CAPEX options
Which model suits your investment strategy?
You make your model decision after the open-book calculation – not beforehand. CUBE CONCEPTS does not recommend a model in advance: the right choice comes from your numbers.
| Criterion | BESS Contracting → | Buy BESS → |
|---|---|---|
| CAPEX | 0 € – CUBE bears the full investment | One-time investment (total investment cost ~250 €/kWh) |
| Balance Sheet | Off-balance-sheet possible · assessment under IFRS 16 | On-balance-sheet · capitalized as property, plant and equipment |
| Revenue control | Open-Book · 25 % Profit Share on Net Market Revenue after OPEX | 100 % FTM revenue + BTM savings for the owner |
| Ownership | CUBE CONCEPTS – transfer possible after payback | With the buyer from commissioning |
| FTM operation | CUBE EfficiencyUnit Fully Automatic | CUBE as an optional O&M Partner |
| Industrial electricity price reinvestment | ✅ eligible: implementation by third parties (BAFA guidance note, Chapter 3.5) | ✅ eligible: own investment |
| Profitability | Annual FTM inflow: around €36,000–61,000/MW (25 % net) plus 100 % BTM savings – IRR not applicable (CAPEX = 0) | Payback 2–4 years (CUBE CONCEPTS benchmark) · KPMG reference LFP 10 MW: IRR 10.5 %, NPV 2,802 kEUR |
BESS Contracting – 0 € in CAPEX for you →
You provide the site and the grid connection – CUBE CONCEPTS bears the investment, installation and operation in full. Your FTM share: 25 % of the net market revenues after OPEX = around 36,000–61,000 €/MW/year. BTM savings (peak shaving, §19, AgNes) belong 100 % to you – they are not shared. No CAPEX, off-balance-sheet possible (assessment under IFRS 16).
BESS purchase – full return for you →
You invest once – all FTM revenues and BTM savings belong to you from commissioning. Payback 2–4 years (CUBE CONCEPTS benchmark); KPMG reference for LFP: IRR 10.5 %, NPV 2,802 kEUR. Independent of manufacturer, minimum 3 offers, LCOS-rated.
✅ Both models count as reinvestment under the industrial electricity price – including BESS Contracting (0 € CAPEX)
The Industrial Power Price Directive explicitly mentions „investments in energy storage“ (No. 4.1, based on CISAF, paragraphs 121–122). When purchasing a BESS, you invest yourself; in the BESS, CUBE CONCEPTS Contracting implements the measure as a third party and finances it. This is permitted by the BAFA, „not only in terms of substance but also in financial terms“; responsibility remains with the applicant.
No option is inherently better. Your right choice depends on your calculation – free of charge, transparent, without commitment.
Start open-book calculation →05 – Industrial electricity price
BESS as a consideration for the industrial electricity price – what does this mean in concrete terms?
The industrial electricity price (billing years 2026–2028) relieves companies in sectors listed in KUEBLL sub-list 1 on 50 % of their consumption; in 2026 by 3.744 ct/kWh, with the flexibility bonus around 4.1 ct/kWh. The condition: at least 50 % of the granted amount must be used within 48 months for measures that reduce electricity system costs.
Base consideration – 50 % reinvestment
The directive explicitly mentions “investments in energy storage”. The measure is also eligible in BESS Contracting with no CAPEX for the aid recipient: according to the BAFA, a third party may implement it “not only in terms of substance but also in financial terms”.
Flexibility bonus – +10 % aid
Anyone who commits to investing at least 80 % of the investment obligation in demand-side flexibility receives a 10 % bonus on the base aid amount; 75 % of the bonus must additionally be invested in decarbonization. A battery storage system counts as flexibility, according to the BAFA, for example to reduce load peaks or to take advantage of price differences on the spot market.
Important: The measures may also be implemented and financed by third parties, such as Contracting-providers or energy service providers; the applicant remains responsible (Directive No. 4.1, BAFA brochure "Decarbonization Measures", Chapter 3.5). Upon request, the BAFA confirms in advance whether a measure is eligible for reimbursement. The full ISP analysis can be found in "Battery storage as ISP remuneration →".
Sources: Industrial electricity price directive of 27.04.2026 (BAnz AT 06.05.2026 B1) · BAFA · CISAF Rn. 121–123 · KUEBLL (EU Commission)
References
Projects realized on the same foundation
Tier-1 industrial companies from the automotive, steel and industrial sectors. Full-service from site analysis to O&M – energy projects throughout Europe.
* CUBE CONCEPTS benchmark (gross) · Images: illustrative images
All references →FAQ
Frequently asked questions about BESS costs, LCOS and ROI
The investment costs of an industrial storage system (from 750 kW / 1,500 kWh) vary depending on the technology, capacity, location, and integration effort. Benchmark: total investment cost (GIK) ~250 €/kWh turnkey for systems up to about 2 MWh (CUBE CONCEPTS; the KPMG comparison calculation also assumes 250 €/kWh for LFP). With BESS Contracting: 0 € own investment – CUBE covers CAPEX and OPEX. Profit share: 25 % of the net market revenues after OPEX. The exact costs are determined by the CUBE BatterySizer based on your load profile in an open-book calculation.
LCOS (Levelized Cost of Storage) is the discounted total cost per MWh discharged over the entire lifetime, including investment, operation, and degradation. It enables fair comparison between technologies (LFP, ZnBr, NIB) and operating strategies. KPMG comparison calculation (February 2026): ZnBr 104 €/MWh, LFP 110 €/MWh, NIB (sodium-ion battery) 127 €/MWh.
The payback period depends on the revenue structure, operating strategy, and financing model. For a purchase in multi-use operation, CUBE CONCEPTS assumes a static payback of 2–4 years. In the KPMG comparison calculation (10 MW / 40 MWh, pure arbitrage, Feb. 2026), LFP achieves an IRR of 10.5 % and an NPV of 2,802 kEUR; the discounted cash flows turn positive after nine to ten years. The §118 exemption improves profitability, but according to the AgNes draft, it requires an investment decision before January 1, 2027 and commissioning by August 4, 2029.
In February 2026, KPMG AG published the investment case “Stationary Battery Storage”. It compares lithium iron phosphate (LFP), zinc bromide (ZnBr) and sodium-ion (NIB) from a technical and economic perspective. In the simplified comparison calculation (10 MW / 40 MWh, two full cycles per day, WACC 6 %), all three achieve a positive net present value: LFP with the highest IRR (10.5 %), ZnBr with the lowest LCOS (104 €/MWh) and the highest NPV (5,076 kEUR). For uncertainties, KPMG recommends using ranges, for example via a Monte Carlo simulation. Source: KPMG AG, Investment Case: Stationary battery storage, February 2026.
Section 118(6) EnWG exempts storage systems that are commissioned by August 4, 2029, from grid fees on electricity drawn from the grid for 20 years, insofar as the electricity is fed back into the grid. According to the AgNes draft determination of the Federal Network Agency of 06.08.2026, this applies to new projects only if the final investment decision is made before the determination is announced, planned for January 1, 2027. The exemption is a cost advantage, not a market revenue, and improves the return over 20 years; without it, new storage systems will pay a capacity fee from 2029 (BNetzA estimate 4–7 €/kW per year).
CAPEX: one-time investment (hardware, grid connection, installation, prequalification). OPEX: ongoing (maintenance, monitoring, insurance, market connection) – CUBE CONCEPTS benchmark ~55,000 €/year/MW incl. marketing. In BESS Contracting, CUBE CONCEPTS covers both in full. In the purchase model: CUBE remains an optional O&M partner.
In the KPMG comparison calculation (February 2026), ZnBr has the lowest LCOS: €104/MWh, with the highest NPV (5,076 kEUR). LFP follows with €110/MWh, but achieves the highest IRR (10.5 %). NIB (sodium-ion battery) is at €127/MWh and is under observation. CUBE CONCEPTS evaluates all options in the manufacturer-independent tender with at least 3 offers, LCOS-rated.
LFP degradation: 2.1 %/year (KPMG AG, Feb. 2026). This value is explicitly priced into LCOS and IRR. At 2.1 % per year, capacity mathematically falls to about 80 % after around ten years; according to KPMG, the end of life is typically reached at around 70 %, for LFP after about 14 years at two full cycles per day. This significantly affects the LCOS calculation. The open-book calculation shows the degradation path over the entire lifetime – transparent, before signing the contract.
Yes – FTM revenues (200,000–300,000 €/MW/year gross) and BTM savings (peak shaving, §19 para. 2 sentence 1 until 31.12.2028 (last application deadline: September 30, 2028), AgNes from January 1, 2029) are sufficient on their own. §118 significantly improves profitability, but is not a prerequisite for it. The exact calculation is provided by the open-book calculation based on your load profile.
Submit load profile data (15-minute values, 12 months). CUBE BatterySizer calculates over 250 operating variants: LCOS, revenue potential (FTM + BTM), optimal storage size, technology comparison. Result: complete calculation with CAPEX, OPEX, IRR, NPV – at least 3 offers, LCOS-rated. Free, no commitment, 30 minutes for initial assessment.
First step
How do you get your individual BESS profitability calculation?
Submit your load profile. CUBE CONCEPTS calculates LCOS, revenue scenarios, CPFS calculation and IFRS structure – free of charge, without commitment, in 30 minutes for a preliminary assessment.
Submit load profile – open-book calculation →§118: Investment decision according to AgNes draft before 1st January 2027 · Commissioning by 4th August 2029 · Planning with an existing grid connection: 6–12 months
Free · No commitment · Initial consultation based on your load profile data
As of: 09.10.2026. AgNes information based on the draft determination; the final determination is planned for the end of 2026.
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