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.

Is a standard two-year warranty sufficient?

A standard warranty of two years for both performance and product is what most manufacturers offer. However, most projects that are financed require a longer warranty.

Does LG Chem offer an energy throughput warranty?

LG Chem offers an energy throughput warranty, meaning it warrants that the battery will deliver a certain amount of energy over a 10-year life. The number of times a day the battery is cycled affects the battery's lifespan, making energy throughput a crucial factor.

Is a 10-year warranty beneficial?

A 10-year warranty from the vendor guaranteeing that the system will have 75% of year-one capacity is not necessarily beneficial. The system could have 150% of year-one capacity at year 10, but if it's not being dispatched correctly, it provides no value to the host customer.

Should you buy a warranty on a car battery?

For energy storage batteries, purchasing a warranty beyond 10 years does not make much sense, as a significant portion of the battery would likely need to be replaced after that period. Insurance can also be obtained. Operating and maintaining batteries is complex due to the reliance on software to optimize performance. The rates of deterioration of the battery depend on how the battery is used.

Are solar developers quoting energy storage in every deal?

Under Southern California Edison’s GS3 time-of-use rate, energy storage is being quoted in every solar deal as the energy charge during peak periods, which are from 4 to 9 p.m. or 5 to 8 p.m., is as high as 40¢ a kilowatt hour. With the change in time-of-use rates in California, developers and solar installers are now quoting energy storage.