Navigating FEOC Requirements for Battery Energy Storage Projects

New Foreign Entity of Concern (FEOC) requirements are reshaping battery energy storage system (BESS) procurement, supply chain due diligence, and federal tax credit qualification in the United States.

Key Considerations for BESS Projects

In a recent pv magazine article, Allan Oduor, Project Manager at Enertis Applus+, examines how evolving FEOC requirements are affecting BESS procurement and project financing. Key considerations include:

• Prohibited Foreign Entity (PFE) requirements and supplier certification
• Material Assistance Cost Ratio (MACR) compliance
• Battery cell sourcing and factory-level supply chain traceability
• Technical verification and documentation requirements
• Effective-control risks associated with software, licensing, O&M, warranties, and other post-commissioning arrangements
• Contractual controls and documentation needed to support long-term compliance

The article highlights how FEOC compliance is becoming an increasingly important consideration for BESS developers, project owners, lenders, tax equity investors, and transfer credit buyers. With project-specific documentation and supplier certifications facing greater scrutiny, early technical verification and traceability can help identify potential compliance gaps, strengthen financing due diligence, and support project bankability.

Enertis Applus+ supports BESS stakeholders with independent technical advisory, supply chain traceability, factory audits, and technical due diligence to help navigate evolving procurement, financing, and compliance requirements.

Read the full article, “Burden of Proof,” by Allan Oduor, published in pv magazine Global 11/26