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.

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).

Why do you need warranty insurance for your energy storage system?

Our warranty insurance solutions help to secure your sustainable business in the long run. Energy storage systems often involve the complex integration of multiple high-tech components. These are all prone to failure and malfunction, particularly over long periods of ten years and more.

How long do energy storage systems last?

Energy storage systems often involve the complex integration of multiple high-tech components. These are all prone to failure and malfunction, particularly over long periods of ten years and more. As a manufacturer and system integrator you have to provide your customers with warranties.

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.

Why do we need reliable energy storage systems?

Renewables like wind and solar energy are intermittent by nature. To successfully master the energy transition, reliable energy storage systems are a must to provide the necessary supply stability.