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Viridi recently announced one of its battery energy storage systems has replaced a diesel backup generator at a wastewater facility in New York State. When we write about battery storage on this site, sometimes it is paired with solar power to store excess clean electricity. Energy storage has other applications, as we see in this case because it can be used to provide backup electricity efficiently. Gas and diesel generators have had their use value for many years and yet increasingly the economics make sense to eliminate or reduce their usage in favor of electricity.
Bill Krug, Senior Principal of Sales at Viridi, answered some questions about the New York project for CleanTechnica.
What was the cost of the new battery system?
The total installed cost of the Viridi Battery Energy Storage System (BESS) for the lift-station project was $130,000. However, federal clean-energy incentives significantly reduce the municipality’s effective capital cost.
Under the Clean Energy Investment Tax Credit (IRC Section 48E), municipally owned BESS projects qualify for:
- 30% Base Investment Tax Credit (ITC)
- +10% Domestic Content Bonus
- Total Eligible ITC: 40%
Because municipalities can utilize the Direct Pay provision, the incentive is received as a cash payment rather than a tax offset.
Project Cost Breakdown:
- Gross Project Cost: $130,000
- Federal ITC (40%): $52,000
- Net Municipal Capital Cost: $78,000
In addition, New York State incentives may further reduce costs. NYSERDA is incorporating the Inclusive Storage Incentive (ISI) into its Energy Storage Market Acceleration Program as part of the Climate Leadership and Community Protection Act (CLCPA) equity mandate. In certain qualifying zip codes, this can result in an effective zero upfront cost for municipalities.
What is the battery chemistry?
The system uses lithium-ion Nickel Manganese Cobalt (NMC) battery chemistry, integrated with Viridi’s proprietary Fail-Safe Anti-Propagation™ architecture, which is specifically engineered to prevent cell-to-cell thermal runaway propagation and mitigate the risk of battery fire.
How long will the battery system last for its whole lifetime?
Viridi battery packs are rated for 4,000 full charge-discharge cycles before degrading to 80% of their original (day-one) usable capacity, which is considered the system’s “end of primary life.”
For example, a 100 kWh battery that undergoes one full discharge and recharge cycle 4,000 times would still retain approximately 80 kWh of usable capacity at that point.
Actual lifespan depends on how frequently the system is cycled. In applications like the Erie County Pumping Station — where the battery is not continuously cycled — the system is expected to operate for well over 20 years before reaching the end of primary life.
How much can be saved by using electricity in a battery system instead of diesel fuel in a diesel generator and generator maintenance and repairs?
Using a Viridi Battery Energy Storage System (BESS) alongside (or in place of frequent generator use) can reduce both recurring operating expenses and long-term capital exposure associated with diesel generators.
Municipal lift stations typically spread generator costs across both operating and capital budgets. These costs are not limited to routine “maintenance” — they include ongoing fuel, testing, service contracts, emergency repairs, and eventual full replacement of generators and control systems.
Viridi’s BESS absorbs the majority of real-world outage events, significantly reducing generator runtime, wear, and fuel consumption. That translates into measurable financial savings.
Reduced Annual Generator Operating & Maintenance Costs
Typical annual generator-related costs:
- Routine testing & inspections: $3,000–$6,000
- Fuel management & replacement: $2,000–$4,000
- Preventive maintenance contracts: $2,000–$4,000
- Load bank testing: $1,000–$2,000
Total Annual Generator O&M: $8,000–$15,000
Note: This excludes fuel consumption during extended outage events.
Reducing generator runtime lowers these recurring costs and decreases mechanical wear.
Deferred Generator Replacement & Control Upgrades
Typical capital exposure:
- Installed generator replacement: $150,000–$250,000
- Typical service life: 10–15 years
- Annualized replacement exposure: $10,000–$20,000
By reducing cycling and stress on the generator, a BESS extends useful life and defers major capital replacement and control upgrade projects.
Total Generator Lifecycle Value
- Recurring O&M reduction: $8,000–$15,000 per year
- Annualized replacement deferral: $10,000–$20,000 per year
- Total generator lifecycle value: $18,000–$35,000 per year
A battery system reduces fuel dependency, lowers maintenance requirements, extends generator life, and improves budget predictability. Over time, these savings can materially offset the cost of deployment — especially when combined with federal and state incentives.
How is the battery system fail-safe?
Viridi’s battery systems are engineered around a proprietary Fail-Safe Anti-Propagation™ architecture, integrated directly into its RPS50 battery packs.
In third-party UL 9540A testing — which involves intentionally forcing a battery cell into thermal failure — Viridi’s passive design successfully stopped cell-to-cell thermal propagation. The test results showed no detectable release of heat, sparks, smoke, or flames beyond the initiating cell.
This means that if a single cell were to fail, the event is contained within that cell and does not spread throughout the pack — eliminating the cascading fire risk associated with conventional lithium-ion systems.
The packs are housed in a ¼-inch steel enclosure and are IP55-rated, providing a highly durable, industrial-grade design built to withstand harsh environments.
Together, these safety features make Viridi’s BESS uniquely suited for deployment in and around occupied buildings, critical infrastructure, and sensitive equipment where safety is paramount.
Can other cities and towns also employ battery systems to replace fossil fuel generators and is this the expectation moving forward?
Yes. Battery Energy Storage Systems (BESS) are increasingly being adopted by municipalities as a cleaner, lower-maintenance alternative to diesel generators for critical infrastructure.
Viridi has launched the New York State Infrastructure Hardening & Modernization Program, which includes applications such as wastewater lift stations and traffic signal and camera systems — infrastructure traditionally dependent on fossil fuel generators for backup power.
The program is designed to help municipalities improve resilience, reduce operating costs, and lower emissions while modernizing aging backup systems. Viridi is currently engaged in discussions at both the state and county levels to expand deployments.
Looking ahead, as federal and state incentives remain in place and municipalities prioritize resilience, emissions reduction, and budget predictability, the shift away from diesel backup toward battery-based systems is expected to accelerate — particularly for infrastructure located in or near populated areas.
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