Australia’s extended January heatwave delivered the first meaningful revenue uplift for battery energy storage systems since mid-to-late 2025. NEM-wide revenues rose from $64k/MW/year in December to $121k/MW/year, with the increase concentrated in South Australia. Extreme heat on 26 January pushed intraday price spreads in the state to a 12-month high.

Queensland and Victoria saw little improvement. Revenues in both states remained near multi-month lows despite higher renewable output and elevated peak demand.

This article reviews grid-scale battery revenues for January 2026, including month-on-month comparisons, energy and FCAS contributions, state-level outcomes, and asset-level performance.

Check out last month's report here.

Executive summary

• NEM-wide battery revenues doubled month-on-month to $121k/MW/year in January, driven by heatwave-related price volatility in the final week of the month.
• South Australian batteries earned $356k/MW/year, three to six times more than those in other states, but recorded the lowest capture rates of the fleet.
• FCAS prices remained low and stable for a fifth consecutive month, contributing minimal revenue as energy arbitrage accounted for nearly all earnings.

January battery revenues nearly double as heatwave brings energy price spikes to the NEM

drove a sharp increase in battery revenues across the NEM, lifting NEM-wide earnings to $121k/MW/year. Despite the spike, revenues stayed below the 12-month average of $126k/MW/year. Energy arbitrage accounted for almost all revenue, with FCAS markets contributing negligible returns across all states.