Cost factors, price trends and two business models. Transparently explained, individually calculated. No flat-rate prices, but solid investment analysis.
The cost of a large-scale battery storage system consists of several components. The interplay between power (kW) and capacity (kWh) is decisive. These are two different metrics that are dimensioned independently and both significantly influence the total cost.
Power (kW)
Power determines how quickly energy can be charged and discharged. More power enables more simultaneous applications but increases costs for grid connection, inverters and power electronics.
Capacity (kWh)
Capacity determines how much energy can be stored. It defines how long the storage system can deliver energy at a given power level. Battery cells represent the single largest cost component.
Site Preparation
Foundation, access roads and site development. Depending on the location, earthworks, drainage and structural measures may be required. Container-based systems have lower site requirements than building installations.
Grid Connection
Transformer, medium-voltage connection and metering infrastructure. Costs vary depending on existing infrastructure and desired connection capacity. An existing grid connection significantly reduces costs.
Engineering & Project Development
Planning, permits, grid applications, detailed engineering and project management. NRG Solutions handles the entire project development as an EPC partner, from feasibility study to commissioning. We also handle maintenance and management.
Peripherals & Control Systems
Energy management system (EMS), climate control, fire protection, monitoring and communication infrastructure. These systems ensure efficient and safe operation over the entire service life.
The cost of lithium iron phosphate (LFP) batteries has fallen by approximately 70% since 2022. This price decline fundamentally changes the economics of large-scale battery storage. Projects that were not profitable two years ago are economically viable today.
Several factors are driving this trend: economies of scale in cell production, technological advances, increasing competition among manufacturers and a maturing supply chain. Forecasts indicate continued, albeit more moderate, cost reductions in the coming years.
Window of Opportunity
The combination of low battery prices and Switzerland's new capacity tariff in force since 2026 creates an ideal investment window. Those who invest now benefit from low entry costs and rising revenues.
-70%
Battery cell cost reduction since 2022
15+
Years of service life for modern LFP battery storage systems
4
Independent revenue streams for maximum profitability
5-8 yrs
Typical payback period with optimal management
NRG Solutions offers two fundamentally different models. The choice depends on your starting position: available equity, risk appetite and desired revenue structure.
| Criterion | INVEST | RENTAL |
|---|---|---|
| Investment | Full or co-investment | None (NRG finances) |
| Returns | Higher return potential | Predictable income |
| Risk | Investment risk with investor | Risk with NRG |
| Operations | NRG handles all operations | NRG handles all operations |
| Contract Duration | Typically 15 years | 15-20 years |
| Target Group | Investors, companies with capital | Landowners, companies without equity |
| Structure | SPV (special purpose vehicle) | Lease agreement or revenue share |
Both Models, One Promise
With both models, NRG Solutions assumes full operational responsibility: planning, installation, operations and energy management. You bear no operational effort.
NRG Solutions does not work with simplified marketing ROI calculations. For each project, we create a detailed financial model using DCF methodology (Discounted Cash Flow).
The model considers all relevant parameters: investment costs, ongoing operating expenses, battery cell degradation, revenues from all four revenue streams and various market scenarios. Results are presented as NPV (Net Present Value) and IRR (Internal Rate of Return).
We work with a deterministic model. Current figures such as electricity prices, historical compensation data such as SDL revenues over the past 10 years and a correction coefficient all feed in. The result is a robust investment calculation.
A BESS does not earn revenue in just one way. Four independent revenue streams run in parallel and are actively managed by NRG Optimization AG. This diversifies income and reduces risk.
Peak Shaving
Reduction of the measured 15-minute peak demand. With Switzerland's new capacity tariff in force since 2026, grid charges are directly linked to peak demand. BESS automatically smooths the load profile and measurably reduces grid costs.
Ancillary Services (AS)
Frequency regulation for Swissgrid. The storage system provides primary and secondary control reserves and is compensated accordingly. BESS responds in milliseconds and is perfectly suited for this market. NRG Optimization AG manages the storage on the AS market.
Self-Consumption Optimisation
Storage of low-cost electricity (PV surplus, off-peak tariffs) and usage when needed. Particularly attractive in combination with a PV system. Reduces grid consumption and increases energy autonomy.
Arbitrage
Exploiting price differences on the electricity market. Charge at low prices, discharge at high prices. Increasing electricity market volatility makes arbitrage ever more attractive. NRG's EMS optimises the cycles automatically.
Detailed explanations of all use cases can be found on our Use Cases page.
Every project is different. In a first conversation we assess the potential together.
Or directly:
Headquarters
NRG Solutions AGBranch Office
Rue des Moulins 51Member of
The cost of a BESS depends on numerous factors: power (kW), capacity (kWh), site requirements, grid connection and project development effort. NRG Solutions creates an individual financial analysis with a detailed DCF model for each project. A blanket price statement would be misleading, as every project is unique.
No. NRG Solutions offers two models: With the INVEST model, you invest yourself (full or co-investment) and benefit from the full return. With the RENTAL model, NRG finances the storage system. You provide the site, benefit from day one and bear no investment risk. Both models are individually tailored to your situation.
NRG Solutions works with professional financial models: DCF analysis (Discounted Cash Flow), NPV (Net Present Value) and IRR (Internal Rate of Return). No simplified marketing ROI calculations, but solid investment analysis with sensitivity analysis. The model considers all revenue streams, operating costs, battery degradation and various market scenarios.
A BESS generates revenue from four independent sources: Peak Shaving (reducing peak demand and thus grid charges), Ancillary Services (frequency regulation for Swissgrid), Self-Consumption Optimisation (storing PV electricity or off-peak electricity) and Arbitrage (exploiting price differences). These revenue sources are stackable and actively managed by NRG Optimization AG.
Three factors point to now: First, battery costs have fallen by around 70% since 2022, making BESS more economically attractive than ever. Second, Switzerland's new capacity tariff in force since 2026 makes peak demand directly and measurably expensive. Third, growing electricity market volatility increases revenue from ancillary services and arbitrage. Those who invest early secure the first-mover advantage.
Ready for a conversation?
Book a meeting ↑