What is the difference between LCOS and the purchase price?

LCOS (€/MWh) calculates total costs over lifetime, degradation, efficiency, and OPEX. LFP: €110/MWh (KPMG, Feb. 2026). Only LCOS makes technologies comparable — not the purchase price.

Why are FTM revenues not guaranteed?

Ancillary service prices are market-dependent. CUBE calculates 3 scenarios (Base/Conservative/Optimistic). Multi-use diversifies across FCR, aFRR, mFRR, Spot — no single-channel risk.

What is the typical ROI and what drives it?

Buy: 2–4-year ROI, IRR 10.5%, % (KPMG, Feb. 2026). Drivers: Grid connection capacity, C-rate, control zone, BTM/FTM split. Site-specific via CUBE BatterySizer.

What do the three scenarios in the open-book calculation mean?

Basis: 12-month historical average revenue. Conservative: -20% %. Optimistic: +15% %. All three scenarios are fully disclosed prior to signing the contract.

Can I still use §118 — what do I need to do and when?

§118 para. 6 EnWG: 20 years of grid fee exemption for commissioning up to August 4, 2029. Not retroactive. Existing connection: 6-12 months lead time. Opp. costs: ~€16,000–€25,000/month for 1 MW.

How does multi-use perform with an increasing BESS inventory?

More BESS increases supply — channel prices may fall. CUBE EfficiencyUnit optimizes for the most profitable channels. AgNes (effective January 1, 2029) creates new BTM revenue streams independent of the FTM market.

Battery storage profitability

Battery storage revenue — BTM lowers 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

KPMG AG, February 2026

110 €/MWh

LCOS LFP System

KPMG AG, February 2026

2–4 years

Typical ROI Purchase

KPMG AG, February 2026

§118-Deadline: August 4, 2029 — 1.218 Days remaining

Two revenue streams

Two revenue streams — most only see one

BTM - Reduce Costs

✓Peak Shaving — Reduce demand charge
✓§19(2) Sentence 1—Grid fee rebate
✓§118 para. 6 — 20 Years Grid Fee Exemption
✓Maximize PV self-consumption

FTM — Generate Revenue

→FCR — Primary Control Power
→aFRR — Secondary control reserve
→mFRR - Minute Reserve as a supplementary channel
→Spotarbitrage - fully automated

BESS - Battery Energy Storage System - Front-of-the-Meter

No either-or — Multi-Use combines both revenue streams simultaneously.

Business Case

Five factors determine your business case

This is relevant for you if you have a grid connection of ≥ 500 kW (BTM) or ≥ 1 MW for direct access FTM (pooling from 750 kW) — and want to understand the full revenue mix before you decide.

Mains connection

BTM: ≥ 500 kW. FTM direct access: ≥ 1 MW, Pooling: from 750 kW. Multiple locations can be pooled.

C-rate

2h systems (0.5C) optimal for aFRR + Arbitrage. FCR: 30-minute full discharge proof required (TSO pre-qualification) — 0.5C systems can provide FCR. Incorrect C-rate = potential revenue not realized.

Control zone

50Hertz, Amprion, TenneT, TransnetBW — Price differences between control areas can result in revenue differences of 20–40 %. CUBE analyzes your grid connection on a control-area-specific basis.

Regulations

§118: 20 years of grid fee exemption for commissioning by August 4, 2029 - not extendable. §19: expires in 2028. Those who plan too late will pay more permanently.

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 system in multi-use operation — concrete

Base: 1.000 kW / 2.000 kWh LFP System. Source: KPMG AG, Investment Case BESS, Feb. 2026.

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-sheet
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 revenue
All net market proceeds to the owner	€165,000 / year

Purchase - Yield Ratios

Return on Investment

2–4 years

IRR

10,5 %

GIK

~ 250 €/kWh

Contracting — Entry Point

CAPEX Owners

0 €

Profit sharing: 25% profit share on net market proceeds after OPEX · Off-balance sheet treatment possible

Source: KPMG AG, Investment Case stationary battery storage, Feb. 2026 · All information without guarantee · Site-specific calculation based on your load profile.

Technology Comparison

Which battery technology — and why LFP?

LCOS (Levelized Cost of Storage) is the right benchmark, not the purchase price. It takes into account investment costs, lifespan, 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 dominates C&I — shortest payback, highest capital efficiency.

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

Regulatory windows

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

Mid-2026

MiSPeL — PV + FTM combinable

EEG determination: PV system can simultaneously generate FTM revenue without loss of EEG remuneration.

31.12.2028

Section 19(2), first sentence, of the StromNEV expires

Atypical network usage — final application deadline September 30, 2028.

01.01.2029

AgNes replaces §19

AgNes replaces Section 19 — the grid fee discount is being replaced by a new, load-profile-based remuneration model. Dynamic grid fee signals (BNetzA BGK-25-01-1#3).

August 4, 2029

§118 IBN Deadline - non-extendable

20 years of network charge exemption. Not retroactively acquirable. Existing connection: 6–12 months planning lead time.

Opportunity cost delay: ~€16,000–€25,000/month at 1 MW · Source: §118 Paragraph 6 of the Energy Industry Act

Contracting vs. Purchase

Contracting or buying — which is more cost-effective?

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
→ IRR 10.5% % (KPMG AG, Feb. 2026)
→ Optional: CUBE CONCEPTS Takes Over Operations

Example 1 MW

€165,000 / year

“Our open-book calculation is not a negotiation tactic — it's the foundation on which partnership works.”

3 Scenarios: Base / Conservative / Optimistic — all open before your commitment.

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

IRR 10.5%, %, off-balance-sheet treatment possible (subject to review based on contract structure), CAPEX relief through Contracting — or full control upon purchase. Full transparency before you make your decision.

You are responsible for sustainability goals and CSRD reporting

BESS as measurable Scope 2 reduction. Industrial electricity price compensation according to CISAF para. 121. Auditable ESRS E1 data points by default.

You are responsible for operational safety & plant engineering

FTM operation is fully automated—no need to intervene in operational 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 too?”

Location-specific — therefore: Load profile analysis first. Our open-book calculation shows your figures, not benchmarks. CUBE BatterySizer calculates 250+ operating scenarios 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 openly 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