Sectors / Battery Storage
The Technology Is Ready. The Revenue Model Isn’t Always.
Grid-scale storage is essential to the energy transition and increasingly proven — but its merchant, contracted, and hybrid revenue streams are exactly the kind of risk conventional lenders struggle to size. That’s structuring work, and it’s ours.
The Financing Reality
A battery earns its money in more ways than a lender can easily model.
Grid-scale storage doesn’t have a single revenue line. It stacks them — energy arbitrage, capacity payments, ancillary grid services, and increasingly, contracted tolling with a utility or corporate offtaker. Some of those streams are merchant and volatile; some are contracted but short; some depend on market rules that are still evolving. A lender looking at that mix sees revenue it can’t underwrite with confidence, and sizes the debt down — or declines — accordingly. The technology is rarely the problem. The revenue structure is.
Our Role
How we help.
Revenue floors and puts that put a defensible minimum under a project’s merchant exposure, so a lender can model the downside. Offtake and tolling structuring that strengthens contracted revenue and credit-supports weaker counterparties. Capital-stack design and tax-credit monetization — including the standalone storage investment credit — that improves the equity story. And where a project pairs storage with newer technology or an untested configuration, technology-performance protection to keep that risk from stalling the financing.
Solutions for This Sector
Which capabilities apply.
Primarily Offtake & Revenue Structuring and Capital & Tax Credits, with Technology & Performance Risk for hybrid or first-of-a-kind configurations.
A Recent Structure
Financing a 250 MWh merchant storage project.
A developer sought roughly $85M in senior debt for a 250 MWh grid-scale storage project, but with more than half of projected revenue coming from merchant energy arbitrage and ancillary services, lenders were sizing the debt at barely 40% of the capital cost.
We structured a multi-year revenue floor beneath the merchant exposure, strengthened the contracted tolling leg with an investment-grade offtaker, and monetized the standalone storage investment tax credit into the equity story.
With a modelable downside in place, lenders advanced a debt quantum that closed the financing, and the sponsor reached financial close roughly four months faster than its original merchant-only process.
Financing a storage project the lenders keep sizing down?
The revenue can be structured into something bankable. Let’s talk.