Newsletter: June 2024
This month we hosted a group of renewable energy experts and solar installers at our Hayward facility. We learned a ton from these on field experts and shared with them about what we are working on behind the scenes to make the ideal BESS for C&I application.
Newsletter June 2024
Last week, we hosted a group of renewable energy experts and solar installers at our Hayward facility. I learned a ton from the group and shared with the guests about what we are working on behind the scenes to make the ideal BESS for C&I applications. A highlight video can been found here
Conversations with Solar Installers
I spoke to over 50 solar installers, contractors, and EPCs about battery energy storage solutions (BESS) for commercial and industrial (C&I) applications.
As I spoke with all these solar installers, I noticed that there was a list of ideas that came up over and over again. Of the many that were talked about, the five most common are as follow: competitive pricing, fully integrated system, easy to install, UL-certified and NFPA-compliant and 10 year warranty.
Competitive Pricing
Battery costs have come down a lot over the years, and we are seeing many projects with 2-3 years of payback time. There are also many federal and state incentives that make BESS attractive. To name a few, most BESS projects can enjoy the standard 30% ITC tax credit. Under the federal Modified Cost Recovery System (MACRS), businesses may recover investments in BESS property through depreciation deductions. If you are in California, you may be eligible for SGIP, which subsidizes BESS projects between $250/kWh to $850/kWh. These incentives combined sometimes make the batteries literally free
Fully Integrated System
A fully integrated Battery Energy Storage System (BESS) combines all necessary components into a single unit. This typically includes the batteries, inverters, thermal management systems, energy management systems (EMS), and isolation transformers in one cabinet. The system should output 480V or 208V, 3 phase 4 wires (with a neutral).
Easy-to-Install
An easy-to-install BESS is designed to be quickly and efficiently set up with minimal complexity. This includes features like modular design, pre-wired components, and clear installation manuals. In most cases, installers want to have one conduit coming out of the BESS cabinet that goes to the panel without needing to wire anything inside the batteries or program anything at the job site.
UL-certification and NFPA-compliant
UL 9540 certification is almost a hard requirement for any project to get approved these days. In addition, local fire marshals may have additional requirements to make sure that the BESS meets the NFPA 855 standard. Many jurisdictions (especially in California) require BESS to have a fire suppression system and active deflagration venting built into the cabinet.
10-year warranty
A 10-year warranty provides a guarantee that the manufacturer will repair or replace the BESS if it fails or underperforms within the warranty period. Battery technology is becoming more mature these days, and some battery vendors are offering extended warranties beyond the 10-year standard.
After showcasing and interacting with many solar installation experts, we were able to gain much more insight into what both installers and customers are looking for when doing research on BESS for C&I installment and usage.
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