Battery Energy Storage System (BESS) – 10 Year Financial Model

Battery Energy Storage System (BESS) – Project Finance Model Description

Battery Energy Storage System (BESS) – 10 Year Financial Model: A comprehensive financial model designed to analyze the development, operations, and profitability of a BESS facility. Includes revenue forecasting, cost analysis, financial ratios, valuation metrics, and investor distribution waterfall, all customizable for various business needs.

A Battery Energy Storage System (BESS) is a technology that stores electrical energy in rechargeable batteries for later use, improving energy reliability and efficiency. It plays a vital role in stabilizing power grids, integrating renewable energy sources like solar and wind, and reducing electricity costs by storing energy during low-demand periods and discharging it during peak demand. BESS enhances grid resilience, supports backup power applications, and enables sustainable energy solutions for residential, commercial, and industrial use. With advancements in lithium-ion and emerging battery technologies, BESS is becoming a key component of modern energy infrastructure.

This Financial Model presents a development and operations scenario of a Battery Energy Storage System (BESS) Facility. The facility has secured PPAs with offtakers and has tied up with renewable energy sources for power purchase.

The model includes calculations and assumptions for the Facility Development (Land Acquisition or Lease, Construction Costs, Equipment, etc), Startup Expenses, Facility Operating Assumptions (Installed Capacity and Availability, Charging, Discharging, and Storage Hours, System Losses), Revenue from 3 different Power Purchase Agreements, Direct Costs (Solar and Wind Energy Purchases, Maintenance, etc.), Payroll, Operating Expenses, Fixed Assets & Depreciation, Financing through Debt & Equity, and Exit Valuation assumptions (WACC and Terminal Value) in case of a potential sale of the business.

Battery Energy Storage System (BESS) – 10 Year Financial Model Structure

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Inputs and Setup Reports:

• General Setup Assumptions, including Starting Expenses, Facility Metrics, Revenue & Cost of Sales Assumptions, Financing (Debt & Equity), and Valuation Metrics

• Facility Development Budget (Land Acquisition or Lease, Construction Costs, Equipment, etc.)

• Payroll, OpEx, and Capex, including Depreciation Schedule

• Forecast Scenarios

Output Reports:

• Monthly Operating Cash Flow Report

• Annual Financial Statements (3 Statement model – 10 Year Forecast)

• Break-Even Analysis

• KPIs & Financial Ratios, including several Profitability, Efficiency, Liquidity, and Leverage (Solvency) Ratios

• Performance Dashboard

• Business Valuation, including DCF Model, Return Metrics (NPV, EV, IRR, MOIC, ROI, etc.), and Sensitivity Analysis

• Investors Distribution Waterfall Model

• Dynamic Professional Executive Summary with an option to choose the Exit Year and Exit Scenario (with or without Terminal Value)

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.

Whether you have no experience or are well-versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!

If you experience any difficulty while using this template and cannot find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.

If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.