⚡ Station A Marketplace Insights

With the surge in electricity demand and continued subsidies under the latest OB3, battery storage—long a promise—is now delivering attractive financials. It pairs well with solar and EV charging, and increasingly stands on its own. We polled our provider network for on-the-ground signals and highlighted opportunities for site owners seeking additional NOI in exchange for space. These results reflect 21 provider responses across NYISO, CAISO, PJM, ERCOT, ISO-NE, and SPP/MISO. Results are directional and meant to guide site screening and deal structuring; outcomes depend on site specifics, timing, and competitive bid dynamics

 

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Indicative lease revenue by ISO. Rates vary by project, timing, and developer interest.

🧭 The value prop for battery storage

Site owners with suitable land in the right utility regions can earn contract-backed income by leasing parking or pad space for a battery system. Batteries can complement solar and EV charging, and in many jurisdictions can be faster to deploy than rooftop solar. Interconnection and permitting timelines vary by utility.

🧮 How the math works

Assumptions

FTM ground or parking lease using indicative market medians; 5 MW nameplate; ~10,000 sq ft footprint (site-specific). Developer funds interconnection and siteworks unless negotiated.

Annual lease revenue by ISO medians

  • NYISO: ~$210k/MW/yr × 5 MW ≈ $1.05M/yr

  • CAISO: ~$190k/MW/yr × 5 MW ≈ $950k/yr

  • PJM: ~$180k/MW/yr × 5 MW ≈ $900k/yr

  • ERCOT: ~$90k/MW/yr × 5 MW ≈ $450k/yr

Valuation impact (illustrative)

NOI ÷ cap rate = value change. At a 6% cap:

  • $900k NOI ≈ $15.0M value effect

  • $450k NOI ≈ $7.5M value effect

Actual bids depend on feeder constraints, land prep, term and indexation, and market timing. Competitive bidding and standardization reduce variance.

🧩 Additional qualification criteria

A viable battery project needs more than open space. Prioritize proximity to a substation with available headroom and a feeder with hosting capacity for new injection. Sites should be outside mapped floodplains; while enclosures are weather-rated, flood risk raises costs, slows permits and insurance, and can jeopardize operations.

🎯 Where to focus first

  • NYISO: Highest indicative medians; strong capacity value and retail programs

  • CAISO: Behind-the-meter excels on demand charges and TOU spreads

  • PJM: Balanced opportunity across FTM and BTM with multi-state optionality

  • ERCOT: Scale leader; underwrite merchant conservatively and use floors where available

🛠️ Three structures that pencil

  • FTM lease: Capacity-led markets with merchant optionality; clean, contract-backed income indexed to capacity constructs

  • BTM savings: Customer-sited batteries capturing demand-charge and TOU economics, plus program dollars where available

  • Hybrid BTM + grid services: Retail savings plus eligible wholesale or capacity participation via an aggregator in markets that allow it

✅ What “good” looks like

Four-hour LFP leading, standardized assumptions, clear metering and curtailment rights, realistic interconnection timelines, and short exclusivity or option periods to keep diligence moving.

📬 Ready to see your portfolio’s battery storage upside

Want the upside, not the guesswork? Drop your sites, and we’ll show you which ones pencil and line up real bids you can compare apples to apples.


See if you qualify

 Rates are indicative and depend on site and market conditions. We surface competitive offers; final pricing is set by bidders.