- Lithium-Ion Battery Packs: These are a significant portion of the overall cost, typically accounting for about 40% of the system cost. The cost of lithium-ion batteries is measured in $/kWh.
- Power Electronics and Grid Connection: This includes inverters, transformers, and other power conversion systems necessary for grid integration. These components are typically measured in $/kW and account for approximately 30-40% of the system cost.
- Balance of System (BOS) Components: BOS includes items such as battery management systems, cooling systems, electrical wiring, and cabling. These components can add 20-30% to the overall system cost.
- Installation Expenses: These costs involve skilled labor and specialized equipment for setting up the battery system. Installation costs are often site-specific and can range from $50 to $100 per kW.
- Operational and Maintenance (O&M) Costs: Although not directly adding to upfront costs, O&M expenses can impact the long-term cost-effectiveness of the system. These include ongoing expenses such as monitoring and potential efficiency losses over time.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-components-that-drive-up-the-cost-of-utility-scale-battery-systems/
