Applications & Economics11 / 13
Economics & Payback Analysis
Cost of storage vs energy savings, tariff structures, incentives.
10 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026
Thermal storage stores energy, not money, and it only pays when the value of shifting energy in time exceeds the cost of the store and its losses. Because storage saves nothing on a flat tariff and its benefits are spread over years, the appraisal needs care. This closing lesson sets out the core economic logic, what to include on both sides, a worked cooling example, the plant-downsizing bonus that often clinches it, and how tariffs make or break the case.
In this lesson
- 01The core economic logic
- 02What to include
- 03The plant-downsizing bonus, and tariffs
- 04Sources and further reading