Does the warranty model for energy storage systems keep pace?

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.

Do warranty conditions limit daily charge-discharge cycles?

For instance, most warranty conditions cap daily charge-discharge cycles to one or two, even though significant portions of annual revenue are generated during just a few high-demand days in some markets. As the industry shifts from contracted revenues to higher shares of merchant operation, such limitations become increasingly costly.

What is a battery energy storage system (BESS) warranty?

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).

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Why is a warranty framework important?

A well-designed warranty framework benefits suppliers and end-users alike by ensuring long-term asset reliability while supporting flexible, revenue-optimised usage patterns.