Commercial Battery Storage (BESS) & Grid Arbitrage Modeler

Underwrite 2 MW / 8 MWh commercial battery energy storage. Model wholesale power price spread arbitrage, grid frequency regulation, and 30% standalone ITC tax credits.

BESS Capacity & Arbitrage Parameters

Battery Storage Capacity (MWh)

Inverter Power Rating (MW)

Turnkey EPC Cost ($ / kWh installed)

Federal ITC Tax Credit (%)

Off-Peak Charge Price ($ / kWh)

On-Peak Discharge Price ($ / kWh)

Grid Ancillary & Capacity Payment ($ / kW / month)

Energy Arbitrage Verdict

48.6% UNLEVERED IRR

Net Capital Basis (Post-ITC)

$1,820,000

Annual Net BESS Cash Flow

+$885,000 / yr

Dual Revenue Stream Breakdown

• Power Price Spread Arbitrage: +$675,250 / yr ($0.185/kWh net spread)
• Grid Ancillary & Capacity Fee: +$300,000 / yr (2,000 kW x $12.50/mo)
• Payback Period: 2.1 Years Full Payback