Abstract: Aiming at the economy problem of echelon utilization battery energy storage system for user-side peak load shifting application,the comparative analysis method is adopted. Based on the technical and economic difference between the new battery and echelon utilization battery,the economic evaluation model based on the return rate of investment and the payback period of investment is established. Combined with the actual example,the configuration scale and economy of battery energy storage system with different recycle cost is simulated and analyzed. It also is compared with the capacity configuration and economy of new battery energy storage system. The results show that,when the recycling price of echelon utilization battery is 0,0.2 RMB/Wh and 0.4 RMB/Wh,respectively,by reasonable configuration,the net income of the echelon utilization energy storage system can recover the cost. And when the continuous discharge time is 8 h,the net present value is largest,while discharge time is 3 h,the return rate of investment is highest. When the recycling price of the echelon utilization battery is 0.6 RMB/Wh,the project investment net income is always negative.