Degradation
Also known as: Capacity Fade, Battery Degradation
The gradual reduction in battery capacity and performance over time and through cycling. Quantified as State of Health (SoH) and governed by degradation curves. Factors include operating temperature, depth of discharge, C-rate, and total cycle count.
In energy storage
Degradation drives the augmentation schedule and is a central input to the BESS financial model — it determines when additional cells must be added to maintain contracted capacity. OEM warranties typically guarantee a minimum SoH (e.g. 60–70% after 15–20 years) under specified operating conditions, and the degradation curve provided by the OEM defines the expected trajectory against which actual performance is measured.
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