New study forecasts battery revenue recovery in 2026

Data from UK company Cornwall Insight indicates profits for battery storage units will progress by 2026 after a period of under performance. The GB Battery Revenue Forecast shows annual revenues for 2 hours assets will increase from £96/kW in 2025 to £108/kW by 2026. This is due to increasing wholesale prices, further price volatility and a rise in renewable energy development over the last few years.

Joe Camish, lead analyst at Cornwall Insight, explains that after a challenging period for battery asset owners, the consultancy is anticipating a recovery in battery storage revenues over the next few years. This will be a positive development for investors and asset owners, indicating a more secure and sustainable future for battery storage investments in the coming years.

Investment in the battery storage industry will be essential, especially with the newly-created National Energy System Operator’s (NESO) stating that storage capacity in the UK must increase by five times to reach government-based clean energy targets. UK battery revenues reached a peak level in August, according to a report by Modo Energy. The report indicated that battery energy storage systems (BESS) secured the second-highest daily revenue in 2024, achieving a figure of £250/MW.

So far this year, the UK has witnessed prices drop below zero for over 140 hours, exceeding the hours recorded in 2023. Modo also reported back in August that UK BESS systems provided over 600MW of energy to the grid via the Balancing Mechanism (BM), increasing the sale price to £47/MW in addition to the wholesale and frequency response revenues.