Do you need a warranty for energy storage?

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.

How long does a Bess warranty last?

Installing BESSs involves technical and operational risks for utility operators and investors. To mitigate risks, BESS manufacturers may offer warranties for 10 years or more based on performance estimates. However, purchasers of BESSs must choose the level of warranty coverage and pay a premium for this coverage.

Are warranties a last resort?

At DNV we recognize that warranties are a last resort we hope our clients can avoid enforcing as it takes time and money to file a warranty claim and can result in legal battles. The goal is always to focus on identifying ways a product can meet or exceed the performance expectations backstopped by warranties or guarantees.

How do we review capacity warranties?

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.

How important is a battery warranty?

The underlying battery chemistry and construction also greatly affect design, controls, and reliability. The value of a warranty will often be something the utility, operator, or investor needs to evaluate.

What are flexible warranty terms?

These flexible warranty terms typically include formulas instead of a fixed table of values that use operational metrics as inputs (see Table 1 above) and then provide adjusted warranty curves for a given timeframe as outputs (see Figure 3 below).