Revenue Stacking

Revenue stacking is earning from several storage applications with one battery, such as demand charge reduction, arbitrage, frequency regulation, and backup, by allocating its state of charge among them.

The applications compete for the same energy. A battery held full for backup cannot arbitrage; one discharged for a peak cannot follow a regulation signal. The energy management system resolves the conflict with priorities and reserves, and the value of a storage project is usually set by how well it stacks rather than by any single service. Sizing tools model the stack to choose the power and energy that pays.

Also called: Value stacking, Benefit stacking