Navigating the rigid world of energy storage warranties
Creating a more effective warranty model that addresses both supplier and end-user needs will help build a more sustainable and productive energy storage market.
It does not matter if you accelerate fast and brake hard, run your gas tank to empty, and never change your oil! Operational requirements are common in energy storage warranties. Even with significant improvements in cell and system technology alongside cost reductions, warranty terms have become more complex.
As challenging as warranties are for battery energy storage system (BESS) owners and operators, it is possible for there to be more clarity. Look no further than how the automotive industry handles electric vehicle warranties. They are simple and flexible, typically covering time (usually eight years) and mileage (usually 100,000 miles).
Inflexible and complex, the warranty model for energy storage systems has failed to keep pace with rapid market growth, the authors argue. This is an extract of a feature article that originally appeared in Vol.41 of PV Tech Power, Solar Media's quarterly journal covering the solar and storage industries.
When we review capacity warranties we take a close look not only at the annual degradation curve provided, but at how it is measured, how performance is calculated, and any other operational restrictions imposed upon the project for the warranty to remain valid. Typical terms are shown in the table below, which is by no means comprehensive.
PDF includes complete article with source references for printing and offline reading.
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