Path-Q Solar
How should battery degradation be included in a solar investment calculation?
Answer
Model declining usable capacity or increasing replacement needs over time, using the manufacturer's warranty limits and a conservative degradation scenario rather than assuming constant output.
Key points
- Track both capacity loss and cycle or throughput limits.
- Include efficiency changes and replacement timing.
- Test results with faster degradation than the warranty minimum.
What it depends on
- Warranty terms
- Annual cycles and throughput
- Operating temperature and dispatch
Risks and trade-offs
- Warranty guarantees may be conditional.
- Replacement costs can dominate long-term economics.
Information you may need
- Usable capacity warranty
- Expected annual throughput
- Replacement price assumption
Your next step
What to do next
Add annual usable-capacity decline and replacement cases to the investment model.
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SQ00115