BESS Payback: Arbitrage, Peak Shaving and Grid Services
Battery returns come not from one source but from stacked revenue streams. With falling costs and revenue stacking, we examine the payback logic of BESS.
Costs are falling fast
Per BloombergNEF, lithium-ion battery pack prices fell to a record low of $108/kWh in 2025, while turnkey BESS system prices dropped about 31% year-on-year to ~$117/kWh. The shift to LFP chemistry made stationary storage the lowest-cost segment. As costs fall, paybacks shorten.
Three core revenue streams
Battery returns arise not from one source but from layering several revenue streams on the same asset (revenue stacking):
- Arbitrage: store cheap/self-generated energy and use it at the expensive peak. In EPİAŞ data, peak (17–22) ~3,375 TL/MWh vs ~2,676 at night; that spread becomes income.
- Peak shaving: meet peak demand from the battery to cut demand charges and expensive-hour grid purchases.
- Ancillary services: extra income from grid services such as frequency control.
- Self-consumption: after hourly netting, shift midday surplus to evening to cut the bill.
What drives payback?
- Intraday price spread — the wider it is, the more valuable arbitrage.
- Annual cycle count — how often the battery charges/discharges.
- Round-trip efficiency (typically 85–95% for LFP).
- Battery/system cost and how many revenue streams are stacked.
The Egesa approach
Right-sizing and revenue stacking are the two main payback drivers. Egesa plans storage-backed solar end-to-end, from feasibility to commissioning, modelling which revenue streams your site can capture.
Model your BESS payback with Egesa.Frequently Asked Questions
How much does a BESS cost?
Per BloombergNEF, in 2025 lithium-ion pack prices fell to a record ~$108/kWh and turnkey BESS systems to ~$117/kWh; costs keep falling each year.
What is the payback period?
It varies by project, depending on the intraday price spread, annual cycle count and how many revenue streams (arbitrage, peak, ancillary) are stacked. Falling costs are shortening it.
What is revenue stacking?
Earning multiple revenues from the same battery — arbitrage, peak shaving, ancillary services and self-consumption combined.
Should I choose LFP?
For stationary storage, LFP leads on falling cost, safety and long cycle life and has become the dominant chemistry.