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 are the different types of storage warranty?

In the energy storage sector, there are two main types of warranties: a product warranty, which is a guarantee against defects, and a performance warranty. In this context, we do not focus on the product warranty as much.

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.

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Should a 10-year warranty be extended to 15 years?

A 10-year warranty will not have a design target of 10 years because half of the batteries will need to be returned under warranty. Thus, the design target would have to be at least 14 or 15 years. I would not give a 15-year warranty, and I do not think anybody in the space should do so.

How long should a Bess warranty last?

2. Reflect practical usage patterns: Given that BESS warranties often span 15 years or more, flexibility is essential. Owners and operators require warranties that support evolving usage profiles, especially as energy markets grow more complex.