14 Common Questions about Battery Energy Storage Systems (BESS)

1. What Does BESS Mean and How Do You Define BESS?

BESS is an acronym for Battery Energy Storage Systems. These battery storage systems collect energy from the electrical grid or co-located electricity generator, like an adjoining solar project, and store it until the utility grid needs the energy during periods of high demand.

2. How Do Battery Storage Systems Work?

Battery storage systems store electricity in large rechargeable batteries and send it back to the grid when needed. They charge when power is plentiful or lower cost, and discharge during peak demand, outages, or when renewable generation drops.

For property owners, they function much like a quiet industrial energy facility: electricity goes in, is stored, and is released later to help improve grid reliability and support renewable energy.

3. What Types of Batteries Are Used in Battery Storage Systems?

Lithium-ion batteries are the dominant technology in the market for BESS. Modern lithium-ion batteries have high energy density (and thus a smaller footprint), reduced degradation, and are comparatively low-maintenance, which also makes this technology well suited to many familiar applications such as smartphones, laptops, power tools, and electric vehicles.

4. How Do Lithium-Ion Batteries Work?

Lithium-ion batteries are rechargeable batteries that store energy and release it when needed. They work by moving lithium ions between two electrodes during charging and discharging.

5. Where Does the Energy Come From That Is Stored in the Batteries?

Battery storage systems can draw energy from a co-located generation source like a solar project, wind farm, a gas generation plant or the local electric grid.

6. How Do Battery Systems Improve Electric Grid Reliability?

Battery systems help balance electricity supply and demand by storing energy when it’s available and deploying energy during periods of peak usage. Battery storage systems can be developed on underutilized industrial sites, commercial properties, brownfields, former agricultural land, vacant parcels, and locations near existing electrical infrastructure.

BESS projects also support voltage and frequency stability because they can turn on and off much faster than traditional electricity generation sources such as a coal or natural gas power plant.

7. How Common Is BESS in the US?

Battery systems are not new to the U.S. Large-scale battery storage has been deployed in the U.S. for more than a decade, with rapid growth occurring since the late 2010s.

Currently, over 50 GW of BESS projects have been deployed in the U.S.; that amount of energy is enough to power 5.7 million average U.S. homes annually. Industry deployment has accelerated significantly as battery costs have declined, and utilities have sought new ways to improve grid reliability and integrate renewable energy.

8. How Much Space Do Battery Systems Need?

Project size varies depending on the battery capacity and local grid needs. New Energy Equity builds projects to support the local distribution grid, which means they are smaller and typically require a ½ acre or less. A common industry guideline is approximately 1,000 square feet per megawatt hour (MWh) of battery storage.

9. What Types of Places Can the Projects Be Built?

Battery storage systems can be developed on underutilized industrial sites, commercial properties, brownfields, former agricultural land, vacant parcels, and locations near existing electrical infrastructure. The most important factor is access to the electric grid.

Modern Li-ion batteries are generally best installed outdoors, set back from other inhabitable structures or important infrastructure.

10. What Are the Benefits of Hosting a BESS Project?

Battery storage projects provide an opportunity to generate long-term, passive income from land that may otherwise have limited use. Because battery systems require less than one acre, these parcels can become productive assets and create reliable lease revenue without interfering with operations on the rest of your property. These projects do not require frequent maintenance and are remotely operated and monitored 24/7.

11. How Long Does It Take to Build?

Permitting and applying for interconnection can take up to 2 years. Construction is often completed within 6 to 12 months depending on project size, site conditions, and utility interconnection requirements.

12. What Happens After the Project Is Built? Is Active Maintenance Needed?

Yes, and New Energy Equity handles all of it. Battery storage facilities are monitored continuously by remote operations staff and undergo periodic inspection and maintenance. Preventative maintenance work is performed by trained technicians and requires low day-to-day site activity, with no maintenance requirements of the property owner.

13. What Safety Precautions Are Taken to Ensure Operations Run Smoothly?

BESS are designed for safety and are subject to rigorous industry standards and regulations. Advanced monitoring systems that operate 24/7 and additional safety systems such as automatic shutdown capabilities, fire detection and alarm systems, and secure enclosures are all used to protect your property.

14. How Long Do Battery Storage Systems Operate?

Most battery storage projects are designed to operate for approximately 20 years, depending on the technology, equipment upgrades, and contractual arrangements. At the end of the project's life, the equipment is removed, and the site is restored to its original state or repowered with newer technology.