How to Make Money in Stationary Energy Storage: Establishing Threshold Values for Emerging Storage Applications

April 28, 2016 | State of the Market Report

Stationary energy storage is a transformation grid management asset that has the ability to both absorb and inject energy, acting as both a generator and consumer of power. However, despite significant system cost reduction progress, there remain few profitable avenues for stationary storage. The industry’s development has been hampered by limited and regionally specific pathways to consistent revenue streams. While there are some early market examples of profitable applications, policymakers and stakeholders have not come to a consensus on how to value the multitude of services storage can provide. Further complicating the landscape, the value of these services fluctuates with a battery’s location, grid domain, and end application. We find that there is not a single “killer app” for energy storage, but rather several applications and combinations of applications that yield profitable systems, depending on the system cost. Moreover, we identify that power-focused applications provide the best near term path to profitability, but that profitability will remain regionally specific, with developers relying on advanced software management to enable application stacking and virtual power plants. Going forward, policy certainty will be required across all grid domains for energy storage to be deployed as both a centralized and distributed energy resource.

Coverage Area

  • Owning the Energy Transition

Table of Contents

  • Title page
  • Table of contents

Lead Analyst

Dean Frankel


Cosmin Laslau, Ph.D.

About Lux Research

Lux Research is a leading provider of tech-enabled research and advisory solutions, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux clients are empowered to make more informed decisions today to ensure future success.

Already a Lux Client?

Sign In

Interested in Learning More?

Contact us to learn the benefits of becoming a Lux member.

Or call us now

For North America (Boston Headquarters)
+1 (617) 502-5300

For EMEA (Amsterdam)
+31 20 280 7900

For APAC (Singapore)
+65 6592-6978