ABB launches battery storage subscription model to address capital constraints

ABB has introduced a new subscription-based battery energy storage offering that aims to overcome the high capital expenses and technical knowledge needed to add energy storage that can have payback times stretching years or even decades.

The “Battery Energy Storage Systems-as-a-Service” (BESS-as-a-Service) converts what would typically be a significant upfront capital expenditure into an operational expense spread across quarterly payments.

The service is targeting commercial and industrial customers with a turnkey path to utilizing batteries across multiple sectors including data centers, transportation and logistics, and commercial buildings. According to ABB, the offering includes hardware, software, and lifecycle support, with the company managing deployment, maintenance, and optimization.

This shift toward service-based models comes as global battery storage deployments are expected to increase substantially. The International Energy Agency projects a sixfold increase in global storage capacity by 2030, with commercial and industrial systems potentially growing nearly tenfold to 560 GWh during that period.

ABB’s subscription approach includes performance guarantees and coverage for maintenance costs and energy trading brokerage fees. The company says it will manage energy market participation, allowing customers to potentially sell excess energy back to the grid without managing the trading complexities themselves.

The technology-agnostic approach means customers aren’t tied to specific battery chemistries or suppliers, providing flexibility as battery technology continues to evolve. However, ABB requires prospective customers to undergo feasibility assessments before installation to ensure the economics work for their specific situation.

While subscription models can reduce barriers to entry for expensive clean energy technologies, they typically result in higher total costs over the system’s lifetime compared to outright purchases. The value proposition hinges on whether operational benefits and avoided capital constraints justify the premium.

Stuart Thompson, division president at ABB’s Electrification Service Division, described the offering as “a strategic lever for the division’s growth and innovation,” highlighting the business opportunity ABB sees in addressing customers’ financial constraints.

ABB joins several other companies exploring similar service-based models for battery storage and other clean energy technologies, as the industry continues seeking ways to accelerate deployment despite high upfront costs.