Battery Energy Storage Project Financing
Standalone battery energy storage systems (BESS) are financed on how they earn money: tolling agreements, capacity payments, ancillary services or energy trading. The more of that revenue is contracted, the more debt lenders will provide.
FG Capital Advisors prepares standalone storage projects for lender and investor review and arranges construction debt, term debt and equity through third party capital providers.
Start Client IntakeWho This Is For
Storage Developers
Developers of grid scale standalone BESS projects moving toward financial close.
Utilities and Industrial Owners
Owners using storage for capacity, grid services or behind the meter savings.
Storage Portfolio Owners
Owners seeking portfolio or holding company financing across several storage assets.
Investors
Funds and lenders assessing storage projects and needing structured diligence.
What FG Capital Advisors Arranges
Revenue Stack Review
Analysis of tolling, capacity, ancillary and merchant revenues and how much of each a lender can rely on.
Model and Debt Sizing
Degradation, cycling, availability and augmentation built into a lender grade model with sized debt.
Capital Placement
Construction debt, term debt, mezzanine and sponsor equity from lenders and investors active in storage.
Tax Credit Support
Where a US project is eligible for storage credits, we coordinate tax equity or credit transfer with tax counsel.
This service is part of our Solar Project Finance Advisory work, which covers every stage of solar and renewable energy financing.
How It Works
- You send the project details through the client intake form, including capacity, duration, market, revenue contracts and the capital you need.
- We review the revenue stack, technology and contracts and give you a written list of the gaps that would block financing.
- We build or audit the model and size debt to the contracted and merchant cases separately.
- We approach lenders and investors whose mandate fits and coordinate diligence to close.
What Lenders and Investors Look For
Contracted Revenue
Tolling or capacity contracts with creditworthy counterparties carry the most weight.
Merchant Case
Where revenue is merchant, an independent market study and conservative downside cases.
Technology and Warranties
An established battery supplier, clear performance and capacity warranties and a fire safety plan.
Grid and Permits
An executed interconnection agreement and the permits needed for construction and operation.
Documents to Send
Project
Site, capacity and duration, interconnection agreement, permits and schedule.
Revenue
Tolling, capacity or ancillary service contracts and any market study.
Technical
Battery specifications, supply and warranty terms, augmentation and safety plans.
Financial
Financial model, budget, sources and uses and target capital.
Related Services and Guides
Frequently Asked Questions
Can a fully merchant battery project get debt?
Some lenders provide debt to merchant storage, but they size it conservatively and often want hedges, floors or partial contracts. Contracted revenue usually improves terms.
What makes a storage project bankable?
Contracted or well supported revenue, proven technology with strong warranties, a funded augmentation plan and secure grid rights.
Is this different from solar plus storage?
Yes. Standalone storage has no solar revenue behind it, so the storage revenue case carries the whole financing. See our solar plus storage page for co-located projects.
How do I start?
Send the project summary, contracts and model through the client intake form.
Start Your Client Intake
Send the project through our client intake form with the details listed above. We review every submission and reply in writing with the scope, fee and next steps.
Start Client IntakeLenders and investors make their own credit and investment decisions. Terms and approval depend on their diligence, and funding is not guaranteed.
