German court rules Senec dealer must deliver new, defect-free home battery storage system

German energy storage provider Senec has been dealing with the fallout since three reported fires in homes which featured Senec residential battery storage systems, in March 2022.

With the affected products initially switched off, further incidents have meant the Senec home storage systems in question are in “conditioning mode” and can only use a maximum 70% of their rated output.

Leipzig-based Senec has started replacing affected systems with units based on lithium ferro-phosphate technology, which is considered safer than the original lithium-ion products.

On Sept. 19, 2024, judges at the Frankfurt am Main Regional Court ordered, in case number: 2-31 O 77/24, a Senec dealer to deliver a new power storage unit without any defects. That verdict was reported by law firm Dr. Stoll & Sauer which said the ruling is provisionally enforceable but not yet legally binding as it may be subject to appeal.

The case

The plaintiff in the case bought a home PV system which included a Senec.Home V3 hybrid Duo storage system, in spring 2022. Shortly after, Senec switched off the storage system, after the abovementioned fires, and later reduced its performance.

“As a result of these measures, the plaintiff suffered a significant reduction in the storage capacity of his device,” said Dr. Stoll & Sauer. “Even offers of compensation from Senec were not sufficient to fully compensate for the damage.” Since Senec “did not offer a defect-free solution,” the customer filed a lawsuit. “In essence, it was about the new delivery of a defect-free power storage system,” said the legal firm.

The Frankfurt judges determined “the plaintiff’s power storage device has a material defect because its performance was permanently ‘throttled’ to 70%.” This was “a significant restriction” and therefore did not meet contractual requirements. The reduction of storage capacity to 70% represented an unreasonable restriction on the functionality of the storage device.

Dr. Stoll & Sauer said the judges considered Senec’s attempt to compensate for the problem with goodwill payments inadequate. They obliged the Senec dealer in question to “deliver a new, defect-free device.”

Other customers

The legal firm, which specializes in enforcing consumer rights, said many other Senec customers could have warranty claims and has offered anyone affected a free initial consultation.

“This ruling is a great success for all affected Senec customers,” said the law firm. “It clearly shows that consumers have the right to defect-free products, even with technical devices that have been in use for years. The goodwill payments offered by Senec are [not] sufficient to compensate for the damage and the restrictions on use.”

In September 2024, Senec reported it had replaced 5,000 of the affected home storage units since the end of July 2024. The company said it aims to replace around half the battery storage units with a new model by the end of 2024.

The products affected are Senec’s V2.1, V3, and Home 4 models which are equipped with a certain generation of battery modules. Senec, which is owned by German utility EnBW, has not yet said how many home storage units need to be replaced in total.

From pv magazine Deutschland.