The premium range
FEOC-compliant BESS currently carries price premiums ranging from US$70 to US$80 per kWh on the low end to as much as US$150 to US$200 per kWh for certain project configurations, according to Anza, which tracks supplier compliance strategies.
That range reflects variations in project size, eligible cost basis components including engineering, procurement, and construction (EPC), and site work, and whether products also qualify for the domestic content adder that boosts the base 30% ITC to 40%.
“The denominator that we are trying to compare against is not a fixed number, it’s a range,” Manghani explains. “As a result of that, your decision to go with the FEOC-compliant product is also going to come with a range of premiums that you will be willing to live with.”
Tax equity investors remain cautious about committing to projects with FEOC considerations, creating a financing gap that could push more developers toward non-ITC pathways.
