AbstractIn order to achieve the “carbon peaking and carbon neutrality” goals, we must vigorously develop renewable energy power generation. As the penetration of renewables progressively escalates, the corresponding demand for battery energy storage systems (BESS) within the power grid rises concomitantly. This paper presents an innovative optimization approach for configuring BESS, taking into account the incremental variations in renewable energy penetration levels and BESS charge‐discharge cycles. Employing incremental analytical techniques and pivotal metrics such as capacity elasticity, the proposed method determines the optimal penetration rate and corresponding BESS capacity outcomes for deploying energy storage systems. An example analysis of a rural power distribution benchmark is carried out by using the method in this paper, which proves the effectiveness of the method in this paper. This methodology was substantiated through its application to a case study of a rural power distribution benchmark, thereby validating its efficacy. Furthermore, it was compared with the particle swarm optimization, providing a comparative assessment of their relative performance.