As solar and renewable projects continue to scale globally, Battery Energy Storage Systems (BESS) are becoming a critical part of the clean energy mix. Yet, one of the most overlooked parts of project development remains selecting the right supplier and structuring the contract effectively.
The discussion covered not only what to do, but also what not to do when navigating the complex BESS procurement landscape. Here’s a breakdown of the key takeaways.
What You Shouldn’t Do
1. Don’t Start Without a Clear Use Case
Before reaching out to suppliers, be absolutely clear on what applications your battery will serve — frequency regulation, peak shaving, energy arbitrage, or backup.
Your target use case defines cycling rates, lifetime expectations, and performance guarantees — the foundation for both technical and financial feasibility.
2. Don’t “Throw a Bottle into the Sea”
Avoid sending your RFP to every supplier you can find. Instead, target a limited pool of Tier-1 or well-referenced manufacturers with proven track records. Quality over quantity saves months of confusion and risk down the line.
3. Don’t Ignore Interface Boundaries
Know exactly what you’re procuring — the full turnkey system, just the DC container, the inverter, or the transformer.
Poorly defined interfaces between suppliers, EPCs, and local authorities can create costly gaps or overlaps in responsibility.
A RACI matrix (Responsible, Accountable, Consulted, Informed) is a practical way to map roles and prevent disputes later.
4. Don’t Overlook Local Rules and Certifications
Fire safety, spacing regulations, and environmental standards differ by region.
Solutions that lack certifications such as UL 9540 may face insurance issues, higher premiums, or outright refusal from financiers.
5. Don’t Evaluate Only on Cost
Price is just one factor. Always assess performance, references, after-sales support, warranty terms, and supplier credibility — all of which directly impact financing confidence.
What You Should Do
1. Define Clear Performance Metrics
Your contract should specify:
- Availability rate
- Round-trip efficiency
- Usable capacity (at the point of connection)
Link these KPIs with penalty clauses if performance falls below the agreed thresholds.
2. Clarify Scope and Timelines
Your procurement documents should spell out:
- Site conditions and grid connection details
- Targeted COD (Commercial Operation Date) and handover schedule
- Step-by-step procurement and testing process
The more precise your scope, the fewer disputes and surprises later.
3. Build in Transparency
Whether public or private procurement, transparency across bidders encourages healthy competition and ensures fairness.
This not only attracts better offers but also strengthens your negotiation position.
4. Consider Financing Early
Banks and insurers favor projects with proven suppliers, proper certifications, and robust warranties. Align your technical and financial teams early to avoid late-stage deal breakers.
The Bigger Picture
Battery storage isn’t just about technology — it’s about long-term reliability and financial performance.
The message from Sinovoltaics’ experts was clear: success depends as much on the contract and supplier selection as on the engineering design.
By following these guidelines, project developers and investors can avoid expensive pitfalls, ensure compliance, and build BESS assets that deliver reliable returns for years to come.