The overall cost of energy storage systems, particularly Battery Energy Storage Systems (BESS), can be broken down into several key components:
- Battery Cost:
- Battery Cells: The cost of the battery cells themselves is typically the largest expense, with lithium-ion batteries being the most common due to their high energy density and efficiency. The cost per kWh for lithium-ion batteries can range from $300 to $400.
- Battery Management System (BMS): Essential for monitoring and managing the battery’s performance, BMS costs can account for about 5% to 10% of the total system cost.
- Balance of System (BoS) Components:
- Power Conversion System (PCS): Converts stored DC energy into AC energy usable by the grid or homes. PCS costs can range from 10% to 20% of the total system cost.
- Inverters, Transformers, Cooling Systems, Wiring, and Structural Supports: These components collectively contribute significantly to the total cost, often accounting for 30-40% of the system’s expense.
- Installation Costs:
- Skilled Labor, Permits, Site Preparation: These costs can vary widely depending on system size, location, and complexity. Generally, installation costs account for 10-20% of the total expense.
- Operations and Maintenance (O&M) Costs:
- Fixed O&M (FOM) Costs: Include battery augmentation and system maintenance, usually estimated at a percentage of the capital costs.
- Variable O&M (VOM) Costs: Often considered minimal or zero for lithium-ion systems due to fewer moving parts.
- Other Factors:
- Economies of Scale: Larger systems often provide better value per kWh due to bulk purchasing.
- Location and Regulations: Costs can vary based on location-specific regulations and installation complexities.
- Government Incentives: Rebates and tax credits can significantly reduce overall costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-components-that-contribute-to-the-overall-cost-of-energy-storage-systems/
