Battery storage in Australia is entering a new chapter. For years, many companies saw batteries mainly as a safety net against rising energy costs or grid instability. Now, those same systems are proving they can also generate steady revenue.

This evolution is being driven by changes to the National Electricity Market, which has opened up more opportunities for batteries to participate in grid services and wholesale trading.

Through mechanisms such as Frequency Control Ancillary Services (FCAS), businesses can be paid for helping stabilise supply and respond to market demand. The Tesla Big Battery in South Australia demonstrated the scale of what’s possible, earning over $13 million in FCAS payments during its first year of operation while lowering costs across the grid.

Isn’t this Only for Massive Batteries?

Actually, no. The benefits of battery monetisation strategies aren’t limited to utility-scale projects. More mid-sized businesses are discovering that combining batteries with smart trading software can create new income streams. Stored energy can be dispatched when market prices peak, and over time, this approach, often called revenue stacking, can make a significant difference to the return on investment.

“Battery monetisation is changing the way businesses approach energy,” says Kealy Day, Chief Technology Officer at Smart. “It’s no longer just about managing risk or reducing exposure to price swings. Batteries are becoming a core part of financial strategy.”

Market analysts expect revenue opportunities to continue expanding as more services come online. Alongside FCAS and wholesale trading, income streams such as network support payments are emerging, offering operators additional ways to recover costs and improve returns.

Australian Energy Markets: a 101

Australia’s energy markets operate a bit like a giant auction, where electricity supply and demand are balanced in real time, and that’s where batteries come in. When you own a large battery, you can make money in a few ways.

First, through wholesale arbitrage: buying electricity when prices are low, usually overnight or when there is plenty of solar, and selling it back to the grid when demand pushes prices higher.

Second, by providing Frequency Control Ancillary Services (FCAS), where your battery helps keep the grid’s frequency stable, an essential service that the market pays well for. A product which integrates battery hardware with AI-driven software, such as our own Smart Stack powered by Powersync, is perfect for this strategy.

Saving Money on Site

It’s not all about making money. Batteries can also help your business save a considerable amount on energy costs by reducing peak demand charges, which often make up a large part of your bill.

They can lower your reliance on grid power during expensive periods and help you avoid the need for costly upgrades to your site’s electrical infrastructure as your operations grow. Instead of paying for bigger transformers or increased capacity, your battery smooths out demand and keeps your energy use within existing limits.

Who Can Benefit from a Battery?

Any business with a significant energy footprint and the right infrastructure can take advantage of battery monetisation opportunities. This includes manufacturers, cold storage facilities, data centres, large retailers and even groups of smaller sites aggregated together.

If you already have solar, adding a battery unlocks even more value by letting you store surplus energy and participate in the markets. For organisations aiming to cut costs, reduce emissions and build resilience, commercial batteries are fast becoming a practical tool to turn energy into an income stream.

Summing it All Up

In short, a commercial battery does more than store power. It trades it, supports the grid, and works around the clock to improve your bottom line.

For CFOs and energy managers, this changing landscape calls for a different mindset. Batteries are no longer passive infrastructure sitting on standby. They’re evolving into active assets that can strengthen the bottom line and help support Australia’s broader transition to clean energy.