Equipment Replacement
Equipment replacement is the act of removing a current system and adding a new system in its place.
In ETB, equipment replacement (i.e. inverters or batteries) happens at the systems defined end of life (i.e. Year 10 or 15). End of life will vary based on the detailed equipment or vendor used in a design or it will default to your company settings.
Since energy storage systems (ESS) have shorter lifespans and can be costly to replace, a full replacement may not be the best fit for every project. To address this, we’ve developed three end of life treatment options for ESS that accommodate a wide range of modeling needs (image below).
-
Replace ESS: Savings Refresh
At end of life, the original energy storage system (ESS) is completely removed and replaced with a brand-new system. This "refreshes" the savings, essentially restarting them with a new battery system. -
Do Not Replace ESS: Savings Continue
At end of life, the original ESS is not replaced, but it continues operating beyond its expected life. It’s assumed the battery life is extended, and savings continue, following the current degradation schedule. -
Do Not Replace ESS: Savings Stop
At end of life, the original ESS is not replaced and is assumed to no longer function. As a result, all savings from the ESS system stop completely.
It is critical to evaluate site equipment and determine how to properly support the equipment throughout the term of the project. Equally important is ensuring that all costs associated with equipment replacement, repair, and any operation and maintenance (O&M) are included in each design to accurately represent the project’s long term viability.
Any additional costs must be included in the transactions in order to flow through into a proposal financials. ETB provides a gallery of pre-built transactions to support quick and effective modeling. Click here to learn more about ETB's Transaction Gallery.