Iso-cost-performance of thermal energy storage

Abstract As thermal energy storage (TES) systems gain increasing recognition as next-generation energy storage solutions, evaluating their techno-economic performance is crucial. This perspective analyzes the cost-performance of latent heat-based TES systems and introduces the concept of iso-cost-performance—maintaining a constant cost per unit energy ($/kWh) despite material degradation. Using an empirical degradation model, we show that after 1200 thermal cycles, the thermal conductivity and volumetric energy density of a paraffin-based phase change material (PCM) decreased by 36.0% and 26.1%, respectively, resulting in a 31.2% reduction in the figure of merit (FOM) and, consequently, the system cost-performance. However, by introducing thermally conductive additives to enhance effective thermal conductivity, the TES system can recover its initial FOM, achieving iso-cost-performance operation. This framework quantitatively demonstrates how degradation-mitigation strategies—such as improving thermal conductivity—can offset material degradations and maintain long-term cost-effectiveness. Beyond PCM-based TES, the proposed FOM-based approach provides a generalized pathway for cost-performance optimization across various TES technologies.