In February 2026, grid-scale battery revenues in the National Electricity Market fell 55% month-on-month to $54k/MW/year, the lowest level in two years.

Energy spreads narrowed, contingency FCAS prices dropped to 12-month lows, and negative price intervals declined across the NEM. At the same time, the battery fleet continues to expand, increasing competition for merchant value.

Where February saw fewer short-lived system stress events than January, intraday price spreads narrowed and volatility declined. Returns fell across every mainland state.

The outcome highlights how sensitive battery revenues remain to short periods of system stress, and how quickly earnings can compress when spreads and FCAS prices weaken simultaneously.

This article reviews grid-scale battery revenues for February 2026, including month-on-month comparisons, energy and frequency control ancillary services (FCAS) contributions, state-level outcomes, and asset-level performance.

Check out last month's report here.

Executive summary

• NEM battery revenues fell 55% month-on-month to $54k/MW/year, the lowest level in two years.
• Energy arbitrage remained the dominant revenue stream, but two-hour spreads narrowed across every mainland region.
• Contingency FCAS prices dropped to 12-month lows, continuing a downward trend as fast-response capacity increases.
• Less extreme weather than January reduced demand shocks and intraday volatility.
• Average adjusted capture rates fell to 47%, highlighting the growing importance of bidding strategy in softer markets.

February battery revenues low in all states as both volatility and FCAS drop

February marked a sharp reset from January’s heatwave highs. With less volatility, and increasing battery build-out, in both home batteries and utility-scale, energy arbitrage opportunities narrowed and total revenues compressed across every region.