Energy efficiency is a key performance indicator for battery storage systems. A detailed electro-thermal model of a stationary lithium-ion battery system is developed and an evaluation of its energy efficiency is conducted. The model offers a holistic approach to calculating conversion losses and auxiliary power consumption. Sub-models for battery rack, power electronics, thermal management as well as the control and monitoring components are developed and coupled to a comprehensive model. The simulation is parametrized based on a prototype 192 kWh system using lithium iron phosphate batteries connected to the low voltage grid. The key loss mechanisms are identified, thoroughly analyzed and modeled. Generic profiles featuring various system operation modes are evaluated to show the characteristics of stationary battery systems. Typically the losses in the power electronics outweigh the losses in the battery at low power operating points. The auxiliary power consumption dominates for low system utilization rates. For estimation of real-world performance, the grid applications Primary Control Reserve, Secondary Control Reserve and the storage of surplus photovoltaic power are evaluated. Conversion round-trip efficiency is in the range of 70–80%. Overall system efficiency, which also considers system power consumption, is 8–13 percentage points lower for Primary Control Reserve and the photovoltaic-battery application. However, for Secondary Control Reserve, the total round-trip efficiency is found to be extremely low at 23% due to the low energy throughput of this application type.