Clean Energy Associates report shows 72% of BESS manufacturing defects happened at system level

LinkedIn
Twitter
Reddit
Facebook
Email
BESS manufacturing defects CEA
Cell-level, module-level and system-level defects in BESS manufacturing in 2024 vs. 2025. Image: Clean Energy Associates

According to market intelligence firm Clean Energy Associates (CEA), 72% of battery energy storage system (BESS) manufacturing defects were at the system level.

CEA has released its BESS Quality Risks report, a summary of the most common BESS manufacturing defects from 2024.

Following system-level defects were cell-level defects at 15%, and module-level defects at 13%.

The 72% figure represents a 24% increase in system-level defects from previous years.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Of the system-level defects, 62% were identified across three ‘Safety-critical failures’. The first was 28% of defects in fire detection and suppression, 19% with faulty auxiliary circuit panels, and 15% with thermal management defects.

The other notable categorised system-level defect was ‘Performance failures,’ which comprised 6% of systems failing capacity tests.

For CEA, a critical failure denotes “Findings that may result in severe safety risks and hazardous conditions. Critical findings are likely to cause damage to other products or property, trigger non-compliance regulatory issues and generally constitute a breach of mandatory regulations.”

The firm also says that none of the inspected systems were shipped with unresolved thermal management of fire detection/suppression defects.

It follows a four-step defect resolution protocol: buyers are notified, the manufacturer is informed of the issue, the manufacturer must fix or make a new item, and then the item is re-inspected.

CEA further clarified that most system-level findings, 64%, were balance of system (BOS)-related.

Balance of system-related findings occur when defects with BESS components or improper system integration procedures arise. CEA says an example would be a live conductor exposed within the AC/DC distribution, or malfunctioning sensors and alarms due to miswiring.

30% of system-level findings were enclosure-related. These are defects from the enclosure manufacturing and mishandling during transportation. CEA gave the example of grounding mechanism defects.

6% of system-level findings are performance test-related. This includes a wide variety of manufacturing defects or improper system integration. CEA gave an example of charging/discharging failure due to wiring issues in battery rack’s high-voltage boxes.

Defects at the system level greatly affect safety, potentially causing fires, system failures, or energy shortages.

The report from CEA indicates that 28% of the inspected BESS units exhibited defects in their fire suppression systems.

These defects included non-responding release actuators for the fire extinguishing agent, non-functional fire alarm abort buttons and non-responding smoke and temperature sensors.

15% of the inspected BESS had thermal management defects. These included circulation system component failures and compressor mainboards short-circuiting.

Fire safety remains a primary focus in the energy storage sector. Recently, UL Solutions revised its fire safety testing procedures for battery storage to align with updates to the UL9540A test method.

In February, Aaron Marks, market intelligence consultant at CEA, wrote for Energy-Storage.news about the possible impacts of fires like the one at Moss Landing Energy Storage Facility on future BESS projects and public perceptions.

8 September 2026
Barcelona, Spain
Battery & Energy Storage Tech Europe (BESTE) is Europe’s industrial scaling platform for stationary and industrial battery applications — not EVs. Taking place 8–9 September 2026 at Fira de Barcelona, BESTE brings together utilities, IPPs, energy-intensive industries, data centres, ports, rail, maritime, defence and aerospace OEMs — all deploying or integrating battery storage at scale. Over 100 companies already confirmed — including EDP Renewables, Acciona, Endesa, Naturgy, Neoen, Galp, Basquevolt and Veolia — alongside 40+ expert speakers and international institutional support from BEPA, BVES, LDES and Volta Foundation. Where Europe’s battery & ES ecosystem turns projects into reality.
15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.
15 September 2026
Berlin, Germany
Launching September 2026 in Berlin, Energy Storage Summit Germany is a new standalone event dedicated to Germany’s energy storage market. Bringing together investors, developers, policymakers, TSOs, manufacturers and optimisation specialists, the Summit explores the regulatory shifts, revenue models, financing strategies and technology innovations shaping large-scale deployment. With Germany targeting 80% renewables by 2030, it offers a focused platform to connect with the decision-makers driving the Energiewende and the future of utility-scale storage.

Read Next

July 24, 2026
ESS Tech Inc is deploying sodium-ion BESS in the US with Juniper Energy, while CATL deploys its sodium-ion technology in Eastern Europe with Solarpro.
July 24, 2026
In this news roundup, Grenergy, MaxSolar and Saft, and Amarenco have made significant advancements on BESS projects in Spain, Germany, and France.
Premium
July 23, 2026
BESS has huge potential to be deployed alongside AI data centres, but how are industry players positioning themselves to capture this opportunity?
Premium
July 23, 2026
ESN Premium speaks with Bryen Alperin and Sophie Brkovic of Foss & Company about the tax equity investor’s entrance into microgrids.
July 23, 2026
System integrator and project developer ON.Energy and AI data centre infrastructure developer Crusoe have partnered to deploy 5GW of uninterruptible power supply (UPS) technology across multiple US hyperscale campuses.