Making BESS warranties work: Contracts vs. reality
Summary
Striking a careful balance between technical limitations, market ambitions, and contractual realism in operating battery energy storage systems (BESS) is no easy task. Rigid battery warranties can often be a make-or-break factor in BESS asset management. As a result, many industry players now argue that adopting a more flexible approach to warranties could unlock greater value from these inherently flexible assets.
<p class="p1"><span class="s1">Striking a careful balance between technical limitations, market ambitions, and contractual realism in operating battery energy storage systems (BESS) is no easy task. Rigid battery warranties can often be a make-or-break factor in BESS asset management. As a result, many industry players now argue that adopting a more flexible approach to warranties could unlock greater value from these inherently flexible assets.</span></p><p><strong>From <a href="https://www.ess-news.com/2025/09/19/making-bess-warranties-work-contracts-vs-reality/" rel="noopener" target="_blank">ESS News</a></strong></p>
<p>Current BESS warranty structures often limit operational flexibility, restricting how assets can be used – even when technically capable of more.</p>
<p>Unlike commercial warranties, which are short-term and typically cover component defects at the beginning of an asset’s life, performance warranties span up to 25 years and guarantee specific operational standards over time. However, these long-term conditions can significantly constrain the ability to fully monetize BESS assets. As a result, performance warranties are becoming one of the most critical – and contentious – topics in BESS asset management today.</p>
<p>This very issue was the focus of an in-depth discussion at the ‘Get Enspired! 2025’ conference, held in Berlin last week.</p>
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