Abstract: In response to the current challenges of the inadequate capacity tariff approval mechanism for energy storage on the grid side, vague and unclear revenue types, and difficulty in recovering investment costs, an optimization model for capacity tariff approval has been constructed. This model is grounded in the capacity tariff approval process of traditional grid-side energy storage stations, considering that the cost diversion path of grid-side energy storage is expected to expand as the electricity market evolves. Therefore, the profit types of capacity tariff calculation are refined. To enhance the cost recovery ability of grid-side energy storage, the internal rate of return is dynamically adjusted. Consequently, an optimized capacity tariff approval scheme is obtained for grid-side energy storage stations in the market environment. Calculating the capacity tariff levels in different scenarios of grid-side energy storage is of great significance for recovering the grid-side investment and ensuring the healthy development of green transformation in the power system. The calculation examples and sensitivity analysis results demonstrate that the optimized verification model can facilitate the integration of the price mechanism of grid-side energy storage with the development of the electricity market, obtaining reasonable returns across various market stages. In response to the development of the market environment, the optimized model exhibits a superior internal rate of return and a shorter investment payback period compared to the traditional model,which proves that grid-side energy storage has stronger risk resistance ability under this model.