Insights
The decline in battery prices, combined with higher revenues in frequency reserve markets, has made battery investments profitable in several Nordic countries. However, behind these promising calculations lie both market risk and operational complexity. For property owners, the choice comes down to owning the battery themselves or procuring it as a service.
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In today’s energy market, batteries are more than just a backup power solution; they create value in multiple ways.
They reduce peak demand (peak shaving), capture price differences in the spot market (arbitrage), and—most valuable of all—provide grid support services.
Read more about how batteries create value in this article.
Battery investment models today can show attractive payback periods—in some cases under five years. This is largely driven by the prices seen in reserve markets (such as FCR) in recent years.
However, historical prices are no guarantee of future returns. Market prices for flexibility services can drop significantly if many players install batteries at the same time.
This has already happened in Sweden. In some price zones, reserve market prices have fallen by as much as 75 percent from 2023 to 2025. An investment that appeared highly profitable two years ago may therefore deliver significantly lower returns today.
When you own the battery yourself, you tie up capital in hardware that is directly exposed to market fluctuations beyond your control.
In addition, batteries require regular maintenance and a well-defined operating strategy to maintain supplier warranties. Incorrect use can, in the worst case, lead to rapid degradation and significant loss of value over just a few years.
With Battery as a Service, the model is reversed. Sunday Power covers the full investment, installation, and financial risk associated with market price fluctuations.
As a property owner, you effectively lease out space on your site to the battery system—typically the size of a standard shipping container—and receive an agreed share of the revenue in return.
For property owners, this means:
A battery system is significantly more complex than a solar installation. It requires advanced software and market integrations to generate value.
To maximize revenue, the battery must be integrated with the building’s infrastructure and continuously evaluate operating strategies across multiple energy markets.
At the same time, battery health must be actively managed. Improper use can lead to accelerated degradation, reducing both lifetime and value.
At Sunday Power, we specialize in balancing maximum revenue generation with optimal asset lifetime.
For customers who want to own the battery themselves, Sunday Power can also provide operations-only services.
In this case, we act as your operational partner—ensuring the system is connected to the relevant markets and operated optimally—while you retain both the financial upside and downside.
As a decision-maker, it is important to understand the full picture.
The downside of a BaaS model is the same as in any lease-versus-own structure: the upside potential.
If the value of battery services were to increase significantly and remain at very high levels over time, the property owner would receive a smaller share of the total profit compared to owning the system outright.
In other words, you trade the possibility of exceptional returns for predictable, risk-free income and no operational responsibility.
The choice between owning a battery and procuring it as a service ultimately comes down to risk appetite and core competence.
For real estate companies seeking stable income without tying up capital or taking on operational responsibility, Battery as a Service is a strong alternative. Sunday Power takes the investment and manages both operations and market integration.
For those who want full control and are comfortable with exposure to energy markets, ownership may be attractive—with the potential for higher returns if market conditions develop favorably.
