The Wild World of Battery Market: Are You Getting Your Money’s Worth?
The battery market is booming with new traders popping up rapidly, promising high returns on investment. However, not all traders are created equal. One commonality among them is that customers are paying a hefty price for a battery system, relinquishing control over its management. Before considering any offers, it’s crucial to ask the right questions, as reminded by HS’s economic journalist Anni Lassila.
The Promise of High Returns
- Battery traders promise high returns from reserve markets, but the promises are often unclear.
- One battery system stands out as significantly cheaper, with return expectations based on real experience.
- Consumers should ask at least five important questions before purchasing a battery system.
How are the Promised Returns Calculated?
A seller of a €11,000, 14 kWh battery system fails to provide a clear answer when asked about the estimated returns of €2,000-€3,000 annually. The returns are expected from using the battery capacity in reserve markets to balance the electricity system.
Variability in Traders
- While many traders operate by selling aggregated capacity from customers’ batteries to reserve markets, disparities exist in return promises, operational logic, and company credibility.
- Operating in reserve markets requires a contract with the national grid operator, fulfilling specific requirements, and often undergoing testing.
Elisa’s Case: A Model of Credibility
Elisa offers a 15 kWh battery system at around €8,000, significantly cheaper than competitors. The company has a proven track record in operating battery systems for reserve markets, yielding actual returns for customers.
The Future of Battery Markets
- As the need for quick and slow system adjustments increases with the rise of wind and solar power, the future returns from reserve markets remain uncertain.
- The rapid increase in battery installations may lead to a saturation of the market, potentially impacting returns.
Important Questions to Ask Before Buying a Battery System
- How are the promised returns calculated, and what is the contract for battery management?
- Does the company have experience in managing distributed battery systems?
- With whom is the operational contract made, and what is the company’s background and credibility?
- Is the battery used for timing household electricity usage and storing solar power? What are the actual promises in this regard?
- What happens if the managing company goes bankrupt or reserve market returns diminish?
In conclusion, the battery market offers lucrative opportunities but also poses risks. It is essential for consumers to conduct thorough research and ask critical questions before investing in a battery system to ensure they get their money’s worth.