In recent years, the energy storage system has been widely used in power systems because of its double abilities of flexible power regulation and energy carrying. However, the single operation mode of energy storage system brought uncertainty to its net incoming expectation, and the configuration of energy storage are prerequisites. multi-function operation optimization of energy storage system considering the price mechanism is proposed in this paper. Firstly, to adapt to the development of power marketization, the electricity price of multi-function operation for the energy storage system was designed. Maximize comprehensive benefits mathematical model of Energy storage system was established, also, considering the impact of charge-discharge strategy on the life cycle of the energy storage system, the interaction of energy storage system planning and operation is introduced into the model based on the equivalent life loss. Finally, the effectiveness and feasibility of the proposed method are verified by the IEEE-14 node system. The results show that the net income of the energy storage multi-function operation mode is significantly improved.