Average revenues for battery energy storage systems in ERCOT are projected to settle around $23/kW-year for April 2025 - 65% lower than the same time last year.
However, settled revenues from the most recent available disclosure data in February 2025 tell a different story.
Average battery energy storage revenues increased by over 50% year-over-year to $26/kW-year in February. This was almost entirely driven by a cold snap in Texas from February 19-21. In fact, batteries in ERCOT earned over 30% of their revenues on February 20th.
Subscribers to Modo Energy’s research can read this report to understand:
- Why BESS revenue opportunities decreased in April year-over-year, despite increases to natural gas prices and average demand.
- Which batteries were exposed to the highest - and lowest - revenue opportunities in April.
- And which battery operators and optimizers were able to capture the highest proportion of their revenue opportunities in February.
The first section of this report discusses battery energy storage revenue estimates for April 2025 based on system prices and historical market participation rates. Section two analyzes earnings for February 2025 based on available disclosure data from ERCOT, as measured by the ME BESS ERCOT index.
Key Takeaways
April 2025 Estimated Revenues