How to use the BESS ROI Calculator (Battery Energy Storage System)
The Formula
Daily savings ≈ (peak − off-peak) × kWh shifted per cycle × cycles/day. kWh shifted = capacity × DoD × round-trip efficiency. Without a wide TOU spread, payback stretches—compare your tariff first with the Electricity Rate Plan calculator.
Practical Example
Payback years = installed cost ÷ annual savings. LCOS (levelized cost of storage) = installed cost ÷ total kWh delivered over battery life—useful to compare against buying peak energy from the grid.
About BESS ROI Calculator (Battery Energy Storage System)
When BESS arbitrage pays
Daily savings ≈ (peak − off-peak) × kWh shifted per cycle × cycles/day. kWh shifted = capacity × DoD × round-trip efficiency. Without a wide TOU spread, payback stretches—compare your tariff first with the Electricity Rate Plan calculator.
Payback & LCOS
Payback years = installed cost ÷ annual savings. LCOS (levelized cost of storage) = installed cost ÷ total kWh delivered over battery life—useful to compare against buying peak energy from the grid.
Depth of discharge
Higher DoD yields more arbitrage kWh but increases cycle aging. Many lithium warranties cap daily DoD (e.g. 80–90%). Model conservatively if you also use the pack for backup.
Frequently asked questions
Q: Include solar self-consumption? A: This tool is TOU spread + cycles; add avoided export/import separately. Q: Tax credits? A: Subtract incentives from install cost before payback. Q: vs. Battery Arbitrage ROI? A: That tool estimates profit without install cost or LCOS.