Executive Summary:

• Battery energy storage revenues decreased by over 70% in 2024.
• Commercially operational battery energy storage capacity doubled for the third year in a row.
• 19% of batteries earned revenues that were higher than the average top-and-bottom two-hour spread at their respective node.

Subscribers to Modo Energy’s Research will also learn about:

• what drove the decline in battery revenues in ERCOT - along with power prices and Ancillary Service prices,
• how the growth in operational capacity has continued to accelerate - and where new batteries came online in 2024,
• the degree to which the saturation of Ancillary Service markets has pushed battery energy storage capacity into Energy markets,
• and which batteries - and battery optimizers - were most able to out-perform their settlement point’s revenue opportunities.

In 2024, the average battery energy storage system in ERCOT earned revenues of $55 per kW of installed capacity. This translates to $4.63/kW-month.

Additionally, 2024 revenues decreased 71% year-over-year from 2023, when they earned $192/kW, or $16/kW-month. From the 2022 total of $141/kW, they decreased by 61%.