A stronger starting point for every BESS contract

An open, buyer-side model procurement contract for utility-scale Battery Energy Storage Systems, built for developers, EPCs, IPPs and asset owners. The clauses are publicly readable; membership provides access to the technical appendices and participation in the standards process.

Energy Storage
Contract Alliance

5+ GWh of contracts reviewed

By default, the supplier writes your BESS contract.

Suppliers often leave clauses vague, or skip topics like serial defects, traceability and inspections. ESCA helps buyers close those gaps.

Lean & fast-moving buyers

Developers & smaller IPPs

The pain

Without a dedicated battery or contracts team, drafting or vetting a BESS contract from scratch is hard, and it's tempting to just accept the supplier's draft.

How ESCA helps

Adopt a complete, state-of-the-art contract to facilitate your procurement process. You don't need to rely on the supplier's template anymore.

Large & sophisticated buyers

Utilities & major IPPs

The pain

You have negotiating power, but suppliers optimise against you on quality, warranties and risk allocation, on several fronts at once.

How ESCA helps

Detailed technical clauses covering the latest development in BESS technical procurement, covering various topics as cell traceability, quality control, data monitoring and liquidated damages.

What is ESCA

The first open contract standard for utility-scale BESS procurement.

An industry initiative administered by Sinovoltaics. ESCA gives developers, EPCs, IPPs and asset owners a common contract framework for BESS procurement. Open access, practical to use, and built around the buyer's interests.

Open standard

A single, well-drafted contract anyone can read and reuse. It is not controlled by a law firm.

Buyer-side

Drafted from the buyer's perspective: warranties, FAT and SAT, payments and quality terms that protect the asset owner.

Quality-backed

Includes 15+ technical appendices covering cells, racks, system specifications, warranties, monitoring, calibration and spare parts.

The Contract

Open access to the ESCA Model BESS Supply & Purchase Agreement.

An independently maintained BESS procurement template focused on buyer-side risk allocation. It covers pricing, specifications, quality control, commissioning, warranties, cybersecurity, and related procurement requirements. The clauses are publicly readable; the technical appendices are available to members.

ESCA Model BESS Supply & Purchase Agreement ↗

Publicly readable · All clauses

Clause 1, Table of Contents

1. Table of Contents · 2. Agreement Parties · 3. Purpose & Scope · 4. Contract Price, Traceability & Cybersecurity · 5. Inspection, Shipping & Delivery · 6. Site Commissioning, Monitoring & Payment, followed by the 15+ technical appendices.

Clause 2, Agreement Parties

This Agreement is entered into between [Seller], a manufacturer and supplier of BESS, and [Buyer]. Subject to approval by the third-party inspection company (Sinovoltaics Group Limited) designated by the Buyer, Buyer desires to purchase BESS from Seller under the terms set out herein.

Clause 3, Purpose & Scope

This Agreement sets out the terms under which (i) Seller manufactures and supplies BESS to Buyer, (ii) Sinovoltaics Group Limited inspects the BESS prior to final acceptance, and (iii) Buyer purchases and pays for such BESS.

Clause 4, Contract Price, Traceability & Cybersecurity

Seller shall provide traceable data certifying the origin of all battery cells and components within 14 days of the start of each manufacturing batch. All firmware must be verifiable via SHA-256 or equivalent. Seller must notify Buyer within 72 hours of any critical vulnerability and within 24 hours of any cybersecurity incident. NIS2 Directive and IEC 62443 compliance is mandatory.

Clause 5, Inspection, Shipping & Delivery. All containers inspected, no sampling permitted. Acceptance Quality Limits: Critical 0, Major 0, Minor 0. No BESS shipped without a Pass Certificate from Sinovoltaics Group Limited. Late delivery liquidated damages: 0.2% per day from day 16 after the scheduled delivery period expires.

Clause 6, Site Commissioning, Monitoring & Payment. Post-delivery inspection and acceptance periods. Advanced quality assurance service integrated with factory and site acceptance testing. Real-time monitoring obligations covering 100% of containers, racks and packs. Payment by Letter of Credit or wire transfer: 10% advance on FAT approval by Sinovoltaics Group Limited, 90% balance within 30 days of final delivery. Ownership transfers to Buyer upon successful completion of Site Acceptance Testing...

Access and download the full contract with appendices below

Access levels

Public access, member access, and steering committee participation.

The ESCA access model distinguishes between public contract access, member access to appendices and discussion, and Steering Committee participation in the development of the standard.

Steering Committee

Shape the ESCA standard

  • Everything in Registered Member access
  • Named Steering Committee seat, with voting rights on contract evolution
  • Propose directions & add-ons to the contract
  • Non-anonymous public comments; answer & validate member questions publicly
  • Logo on the ESCA website & all publications, plus co-branded content & outreach
  • Bi-monthly online meetings, plus a yearly in-person meeting

Registered Member

Get the full contract + appendices

  • Complete contract, all clauses
  • All 15+ technical appendices, specs, FAT, SAT, warranty schedules
  • Anonymous comments & questions
  • Reference ESCA alignment in RFPs & financing documents
  • Access to all future versions as released

Visitor

Read the clauses, free, no sign-up

  • All clauses, publicly readable
  • No registration needed
  • No access to the appendices
  • Cannot leave comments or ask questions

Get access

Become an ESCA member to access the appendices and technical schedules

Steering Committee enquiries will be followed up separately by the Secretariat.

Steering Committee

Organisations contributing to ESCA governance

Steering Committee members are BESS buyers, developers, financiers, and technical advisors who contribute to ESCA governance. They hold a named Steering Committee seat, review amendment proposals, and support the continued development of the standard as market requirements evolve.

Secretariat

Steering Committee membership is open to

About ESCA

How the standard is maintained.

BESS procurement contracts often vary significantly between projects, resulting in repeated negotiation of common commercial, technical, and quality-related issues.

ESCA maintains a model BESS procurement contract that documents buyer-side risk allocation, technical specifications, cybersecurity requirements, and quality assurance provisions, with updates as market requirements evolve.

The contract is publicly readable and can be reviewed without contacting ESCA. It is drafted from the buyer's side, so warranties, FAT and SAT, payment terms, and quality provisions are structured around asset-owner requirements rather than supplier preferences. The contract is maintained independently of equipment manufacturers and is intended to provide a consistent buyer-side reference framework.

ESCA is an industry initiative administered by Sinovoltaics Group Limited as Secretariat, coordinating contract administration, version control, and stakeholder participation.

What registered members get

  • Complete contract, all clauses
  • All 15+ technical appendices, specs, FAT, SAT, warranty schedules
  • Anonymous comments & questions
  • Reference ESCA alignment in RFPs & financing documents
  • Access to all future versions as released

FAQ

BESS procurement contract questions, answered

Common questions on what a battery storage supply agreement should cover, and how the ESCA model contract handles each point.

About ESCA and the model contract

What should a utility-scale BESS supply and purchase agreement cover?

Most BESS contracts start from the supplier's template, which is built around what the supplier is willing to guarantee rather than what the asset needs to deliver. Whole topics tend to be missing, serial defects, cell traceability, data access, and their absence is not visible until something fails, at which point you have no contractual hook and no leverage. The gap costs nothing at signature and everything at commissioning. The ESCA model contract covers these as standard clauses with technical appendices at system, rack, pack and cell level.

Why do I need a specific contract for battery energy storage systems?

Standard supply contracts often miss things specific to batteries, such as cell traceability, the site commissioning checklist, or storage-specific inspection steps. A BESS-specific contract covers these gaps.

Why do I need the contract template from ESCA?

BESS procurement contract templates are usually sent by the BESS manufacturer or integrator, which means the clauses are seller-sided and tend to overlook key aspects of a BESS project, including Factory Acceptance Testing (FAT), site commissioning, and maintenance.

What is included in the ESCA model contract?

Pricing, technical specifications, quality control, commissioning, warranties, and cybersecurity requirements. The clauses are free to read and freely downloadable from this website. Members get the full technical appendices.

Is the ESCA contract free to use?

Yes. The clauses are public and free to read. Membership is only needed for the technical appendices, specifications, and warranty schedules.

Who administers the ESCA contract?

Sinovoltaics administers ESCA as Secretariat and coordinates inspections, version control, and member participation.

How do I become an ESCA member?

Complete the membership form on this page. Registered Members get full contract access, including the technical appendices. Steering Committee members also get a vote on how the contract should evolve, and meet through dedicated meetings.

What is the difference between a Visitor, a Registered Member, and the Steering Committee?

Visitors can read the contract for free with no sign-up. Registered Members get the full contract and appendices, and can comment. Steering Committee members also help shape future versions and meet during specific events.

Can I use the ESCA contract in an RFP or financing document?

Yes. Registered Members can reference alignment with the ESCA standard in RFPs and financing documents.

Commercial terms, delivery and disputes

When is BESS ownership transferred?

If title passes on shipment or delivery, you own an unproven asset before anyone has demonstrated it works. That affects insurance, financing drawdown, and, critically, your position if the system fails SAT: you are now the owner of a non-performing asset arguing for a remedy, rather than a buyer withholding acceptance. ESCA transfers title only on successful SAT, with risk transferring separately under the Incoterm and payment obligations independent of both.

What payment structure protects a BESS buyer?

Large advance payments against no verified milestone transfer your leverage to the supplier on day one. If the payment schedule is not linked to inspection outcomes, you are paying for units nobody has checked, and recovery of an advance from an overseas manufacturer is slow and often uneconomic.

Which Incoterm should I use for BESS containers?

Vague delivery terms leave customs clearance, import duties, and unloading unallocated, and those costs surface as change orders after the vessel has sailed. Packaging is the quieter risk: containers stacked in transit arrive with structural and enclosure damage that only appears at SAT. ESCA specifies DDP or CIF (Incoterms 2020) with a named place of destination and an explicit no-stacking requirement.

What are typical late-delivery liquidated damages (LDs) for BESS?

Without an LD mechanism, a slipped delivery is free to the supplier and expensive to you. Grid connection windows, PPA start dates, and construction crews all have their own clocks. Without a termination trigger, you can be held indefinitely by a supplier that has stopped performing but has not formally breached. ESCA provides clear wording to cover those points.

Should liquidated damages be capped?

Uncapped LDs are usually unsignable, so a cap is normal, but a cap without a carve-out lets the supplier treat LDs as a price list and buy its way out of ever fixing the system. That is the worst outcome: you receive a payment and keep the underperforming asset. ESCA caps total LDs while preserving the obligation to restore performance to guaranteed levels.

Where should BESS contract disputes be arbitrated?

An unspecified forum usually defaults to the supplier's home jurisdiction, where enforcement is slow and unfamiliar. Where a contract exists in two languages without a prevailing-version clause, the ambiguity itself becomes the dispute. ESCA specifies ICC arbitration seated in a neutral country such as Switzerland or Singapore, conducted in English, with the English text prevailing over any translation.

Testing, performance guarantees and warranties

What is the difference between FAT and SAT for a BESS?

Relying on SAT alone means defects are found after the units have been manufactured, packed, shipped, cleared and installed. Every one of those steps has to be repeated to fix a problem that was visible at the factory, and the schedule impact usually exceeds the repair cost. ESCA requires both, with FAT covering conformity, functional, safety and performance testing before shipment, and SAT covering full system validation at site.

What availability guarantee should I require from a BESS supplier?

Availability guarantees are frequently written against the battery alone, which excludes the PCS, EMS, HVAC and auxiliaries, where a large share of real outages originate. A 98% number measured on the wrong boundary is worth less than a 95% number measured at system level, and without a stated calculation method the figure is unenforceable.

How are liquidated damages for capacity shortfall calculated?

“Repair or replace” as the sole remedy sounds adequate until the supplier takes eighteen months to do it. With no pre-agreed formula, you negotiate compensation after the failure, with the asset already underperforming and no residual leverage. ESCA fixes the calculation in advance: shortfall against guarantee, pro-rata to purchase order value, with the same approach for power.

What LDs apply to round-trip efficiency and availability?

Efficiency shortfall does not announce itself. It erodes arbitrage margin every cycle for the life of the asset, and unless the contract attaches a monetary value to each percentage point, there is nothing to claim against. The same applies to availability. ESCA fixes a clear value per percentage point of efficiency and availability shortfall.

What end-of-warranty capacity should I require?

If no floor is specified, the degradation curve is whatever the supplier's warranty document says it is, and those documents are frequently drafted around test conditions you will never operate in. The augmentation cost then lands on you, mid-life and unbudgeted. ESCA sets a minimum of 80% usable capacity at end of warranty, with commissioning measurement as the baseline and annual testing thereafter.

What is a serial defect clause and why does it matter?

Without one, you chase failures unit by unit. The supplier replaces only what has already failed, leaving a known-defective population installed and running, and each replacement resets nothing. This is the single most expensive omission in BESS procurement. ESCA defines a serial defect and presumes all units sharing the design or batch are affected unless the supplier proves otherwise, and places all costs on the supplier.

What response times should I require for site issues?

Without a clearly defined response time, an outage lasts as long as the supplier's support queue allows, and safety-critical events are handled on the same timeline as routine faults. Spare parts are the parallel exposure: a discontinued component with no availability commitment can strand an asset years before end of life. ESCA sets a clear support process to ensure your BESS asset is available again as soon as possible.

Quality control, data and supply chain

What sampling level should I apply to BESS container inspection?

Sampling means you have contractually agreed that some proportion of containers will ship uninspected. An AQL above zero goes further: it states in writing the number of defects you will accept. ESCA covers both topics to ensure the highest quality of assets.

How do I get battery cell traceability in a supply contract?

Without documented cell origin you cannot verify chemistry or grade, cannot demonstrate compliance with local content or sanctions requirements, and cannot root-cause a failure to a batch. Suppliers will generally provide traceability if asked at the right moment; the difficulty is that after production has started, there is no leverage to compel it.

Can the supplier subcontract BESS manufacturing to another OEM?

Silent subcontracting means the factory you audited is not the factory that built your units. This is common and rarely disclosed, and it invalidates the assurance you paid for in the audit. ESCA prohibits the use of third-party OEMs or subcontractors without prior written buyer approval, following a pre-production audit covering quality systems, ESG, supply chain and traceability.

What data monitoring rights should a BESS buyer demand?

A supplier dashboard is not data access. Without a defined signal list, resolution and retention obligation, you cannot independently verify a capacity test, cannot substantiate a warranty claim, and cannot detect a developing problem before it becomes a failure. ESCA defines mandatory signals at 100% of containers, racks and packs, with time synchronisation.

What happens if the supplier fails to provide monitoring data?

The supplier's incentive is to let data quality lapse precisely when performance is poor. If the contract is silent, missing data becomes your evidentiary problem, and you are asserting underperformance you cannot prove. ESCA reverses this: where required data is unavailable or unreliable due to the supplier, the system is deemed to have failed its guarantees for that period unless the supplier demonstrates otherwise.

What cybersecurity requirements apply to battery energy storage systems?

Suppliers should meet the NIS2 and IEC 62443 standards. The ESCA cybersecurity annexes also cover firmware updates, and what happens when a vulnerability or incident is reported.