The profit model of energy storage system can be divided into three ways: peak valley arbitrage (household systems), capacity leasing (shared power stations), and auxiliary function usage fees (used for grid frequency regulation and peak shaving on the grid side):
1、Peak valley arbitrage：utilizing the energy storage function of energy storage to store electricity during low periods and release it during peak periods, and obtaining profits through the difference in peak valley electricity prices. In order to increase profits, sometimes it is also necessary to discharge during peak charging periods, in order to obtain the difference between peak and average prices.
2、Shared leasing：Shared energy storage is a commercial operation model in which a third party or manufacturer is responsible for investment, operation, and maintenance, and the lessor leases the power and capacity of the energy storage system to the target user in the form of commodities. It adheres to the principle of "whoever benefits, who pays" and collects rent from the lessee. Users can enjoy the power of energy storage charging and discharging within the service period to meet their own energy supply needs, without the need to independently build energy storage power stations, significantly reducing original capital investment, and fully considering the cost and reasonable benefits of energy storage construction.
3、Auxiliary function usage fee: Peak shaving service：The revenue from peak shaving service of the energy storage system is its response to grid instructions, discharge during peak loads, and charge when there is surplus electricity. The direct benefits of peak shaving services include not only the peak valley price difference, but also compensation for auxiliary services. Frequency regulation service: The revenue from frequency regulation service of energy storage system mainly comes from the compensation cost of the power grid for its participation in frequency regulation.
At present, the majority of enterprises rely on the price difference between peak and valley periods to generate profits. That is to say, using low electricity prices for charging during peak periods and discharging during high electricity prices during peak periods. Now, China is gradually improving its phased electricity prices, and in some areas of provinces such as Guangdong and Zhejiang, it is possible to achieve two charges and two discharges per day, which accelerates the payback cycle of industrial and commercial energy storage. To gain a deeper understanding of the profit model of energy storage systems, you can contact Sharp Lai.