How revenue models shape the bankability of BESS projects

The commercial structure of a BESS project is no longer a secondary concern, it’s a core driver of bankability. In this article, we outline how different revenue models affect financing, risk exposure, and long-term value creation for grid-scale battery assets.

At Entrix, we work with developers, lenders, and asset owners across every stage of the storage lifecycle. We’ve seen firsthand that project success increasingly depends not just on technology, but on choosing the right revenue model for the financing strategy. In this blog article we'll provide you a practical guide to clarify which commercial models exist and how they work.

Why Revenue Models Affect Bankability

As batteries become central to grid resilience and renewable integration, developers and investors are facing a more complex reality: the viability of BESS projects increasingly hinges on revenue model design. Unlike solar or wind, battery assets don’t passively generate income. They require active participation in dynamic markets, where upside potential and revenue certainty are rarely aligned.

From institutional equity to bank debt, capital providers are seeking clarity on one key question: How stable is the cash flow, and how does that stability affect risk-adjusted returns?

1. Introducing to Commercial Models

To support strategic decision-making, Entrix has developed a typology of the four leading revenue models in today’s market. These structures differ by exposure to market risk, level of cash flow certainty, and suitability for different investor types. (Enlarge table or download it here).

These models are not static, they should evolve with the project's lifecycle, investor profile, and market maturity. We’ll dive deeper into the role of tollers and evolving market models in our upcoming blog article number 2.

To support model selection, the graphic below shows how each revenue model balances cash flow stability vs. market upside.

2. Why This Matters: What Banks and Equity Expect

The bankability of battery storage depends on reducing perceived volatility in cash flows. For projects with more than 100 MW, most lenders require some form of contracted revenue to underwrite debt and ensure coverage ratios. Equity investors, on the other hand, are willing to absorb more market risk, but expect significantly higher returns.

This trade-off between de-risking and value capture is at the heart of modern BESS offtake structuring.

3. Diagnostic Framework: Align Revenue Models with Financing Strategy

Selecting the right revenue model isn’t just a question of market exposure, it directly affects a project's ability to secure funding, attract the right investors, and perform under real-world conditions.

Key dimensions to consider include:

• Cash flow stability: Does the model provide predictable income to support debt service and operating costs?
• Market resilience: How well does the structure hold up across different price environments and regulatory shifts?
• Financing compatibility: Does the model meet the expectations of the intended capital stack, whether that’s project finance, infrastructure equity, or opportunistic capital?

Rather than treating revenue models as static choices, investors should evaluate them dynamically, tailoring structure to investor needs, project phase, and market conditions.

4. Best Practices for Revenue Structuring

Entrix recommends the following design principles for structuring resilient and financeable BESS revenue models:

Partner with specialists

• Work with optimizers like Entrix to unlock full market value across all revenue streams.
• Choose investment-grade offtakers that offer fair, transparent contract terms and reporting.

Prioritize financial flexibility

• Avoid rigid, long-term commitments that lock in exposure.
• Allow for dynamic risk management and re-optimization over time.

Stay adaptable

• Market dynamics shift your commercial strategy should, too.

Conclusion: The Revenue Model is a Strategic Asset

As capital intensity and market complexity grow, revenue model design becomes a core lever of competitive advantage.

To sum it up:

• The commercial model can define project viability, not just operations.
• Stable revenues are increasingly crucial as capital grows more risk-averse.
• Entrix delivers unmatched expertise by combining AI trading, smart structuring, and deep market access.
• Integrated service is critical especially in a fast-moving energy landscape.

At Entrix, we don’t just optimize operations, we help structure bankable, adaptive business models. If you’re developing or financing a battery asset, we’d be happy to support your decision-making with real-world data, market projections, and contract modeling.

Not sure which model fits your next project? Let’s talk—we’re happy to explore commercial options with you. Let’s discuss and book a meeting with us today to explore solutions tailored to your needs.