Investment in industrial energy storage (BESS – Battery Energy Storage System) is a strategic step towards energy independence and additional revenue from the Capacity Market. However, for many companies, the barrier to entry is high upfront costs. For a 1 MW installation, capital expenditures (CAPEX) can reach several million PLN.
Does this mean only the largest corporations can afford it? Not necessarily.
The Polish market offers various energy storage financing models that allow bypassing the capital barrier and adapting the form of cooperation to your company’s specifics. In this article, we compare three most popular options:
- Cash purchase (CAPEX) – traditional ownership model
- Operational leasing – external financing with tax benefits
- Battery-as-a-Service (BaaS) – storage as a service without investment
Model 1: Cash Purchase (CAPEX)
Traditional model where the company finances 100% of the investment from own funds or investment loan. Energy storage becomes a fixed asset on the company’s balance sheet.
How does it work?
The company:
- Purchases energy storage at full price (CAPEX)
- Bears installation, commissioning, and certification costs
- Manages the storage independently or outsources management to an operator
- Receives 100% of revenues from the Capacity Market and ancillary services
- Bears all service, repair, and disposal costs
Advantages of cash purchase:
- Full control – You decide how the storage is used and managed
- 100% of revenues – All profits from the Capacity Market, FCR, aFRR go to you
- Asset ownership – Storage is your property, increasing company value
- Tax depreciation – You can depreciate the asset, reducing tax base
- No external dependencies – No need to share profits with operator or lessor
- Long-term savings – After payback period, all revenues are pure profit
Disadvantages of cash purchase:
- High CAPEX – Investment of several million PLN freezes capital
- Full technical risk – You bear risk of failures, degradation, technology obsolescence
- Operational costs – Service, repairs, insurance, monitoring are your responsibility
- Competency requirements – You need technical team or external operator
- Long payback period – Typically 7-12 years depending on revenue streams
- Liquidity risk – Frozen capital cannot be used for other investments
Who is it for?
Cash purchase is best for large companies with:
- Strong financial position and available capital
- Technical team capable of managing energy storage
- Long-term investment horizon (10+ years)
- High risk tolerance
- Desire for full control over the asset
Model 2: Operational Leasing
Operational leasing is a financing model where a leasing company purchases the energy storage and leases it to your company for a monthly fee. The storage remains the lessor’s property throughout the lease term.
How does it work?
- Leasing company purchases energy storage and installs it at your facility
- Your company pays monthly lease payments (OPEX, not CAPEX)
- You manage the storage and receive 100% of revenues from Capacity Market and ancillary services
- After lease term (typically 5-7 years), you can buy out the storage for residual value (1-10% of initial price)
Advantages of operational leasing:
- No upfront investment – No need to freeze capital
- Tax benefits – Lease payments are fully tax-deductible as operating costs
- Off-balance sheet – Storage doesn’t appear on balance sheet, improving financial ratios
- Preserved liquidity – Capital can be used for other investments
- Predictable costs – Fixed monthly payments make budgeting easier
- Buyout option – After lease term, you can become owner for low residual value
Disadvantages of operational leasing:
- Total cost higher – Sum of lease payments + buyout > cash purchase price
- Technical risk – You still bear risk of failures and degradation
- Operational costs – Service, repairs, insurance are your responsibility
- Contractual obligations – Long-term commitment, early termination penalties
- Competency requirements – You need technical team or external operator
Who is it for?
Operational leasing is best for companies that:
- Want to preserve capital for other investments
- Seek tax optimization (lease payments as OPEX)
- Have technical competencies to manage storage
- Want to improve balance sheet ratios
- Plan to buy out the storage after lease term
Model 3: Battery-as-a-Service (BaaS)
Battery-as-a-Service is a model where the operator finances, installs, and manages the energy storage, and the host company provides space and grid connection in exchange for a share of revenues.
How does it work?
- Operator finances 100% of investment (purchase, installation, certification)
- Host company provides space (min. 5 m²) and grid connection (min. 100 kW)
- Operator manages storage, participates in Capacity Market and ancillary services
- Revenues are shared between operator and host (typically 50/50 or other ratio)
- Operator bears all costs of service, repairs, insurance, and disposal
Advantages of BaaS:
- Zero investment – Operator finances 100% of project
- Zero technical risk – Operator bears risk of failures, degradation, obsolescence
- Zero operational costs – Operator covers service, repairs, insurance
- Passive income – You receive revenue share without involvement
- No competency requirements – Operator handles all technical aspects
- Long-term stability – 15-20 year contract guarantees predictable revenues
- ESG benefits – Support grid stability and energy transformation
Disadvantages of BaaS:
- Revenue sharing – You receive only 30-50% of total revenues
- Long-term commitment – Contract typically 15-20 years
- Limited control – Operator decides on storage management
- Space requirements – You must provide suitable space
- Grid connection requirements – Min. 100 kW available capacity needed
- Early termination penalties – Breaking contract may involve financial penalties
Who is it for?
BaaS is best for companies that:
- Have available space and grid connection but no capital for investment
- Want passive income without technical involvement
- Seek to avoid technical and market risks
- Want to improve ESG metrics without investment
- Don’t have technical competencies to manage storage
Comparison Table: Which Model to Choose?
| Criterion | Cash Purchase | Operational Leasing | BaaS |
|---|---|---|---|
| Upfront investment | High (several million PLN) | None | None |
| Monthly costs | Service, insurance | Lease payment + service | None |
| Revenue share | 100% | 100% | 30-50% |
| Technical risk | Company | Company | Operator |
| Operational costs | Company | Company | Operator |
| Contract term | N/A | 5-7 years | 15-20 years |
| Tax benefits | Depreciation | Lease payments as OPEX | None |
| Competency requirements | High | High | None |
| Payback period | 7-12 years | Covered by revenues | Immediate income |
| Best for | Large companies with capital | Companies seeking tax optimization | Companies without capital |
Practical Steps: How to Start?
Regardless of which financing model you choose, the process begins with assessment of your facility’s potential:
- Check grid connection – Do you have min. 100 kW available capacity?
- Assess available space – Do you have min. 5 m² for storage installation?
- Calculate potential revenues – Use our calculator to estimate income
- Compare financing models – Analyze which model fits your situation
- Contact operator – Request detailed offer and contract terms
- Conduct due diligence – Analyze contract, legal, and technical aspects
- Sign contract – Formalize cooperation
- Installation and commissioning – Operator installs and certifies storage
- Start earning – Begin receiving revenues from Capacity Market and ancillary services
Check Your Company’s Potential
Which financing model is best for you? Use our calculator to receive a free preliminary estimate of potential revenues and compare financing options.
