Battery safety on multifamily housing

Multifamily property owners face rising insurance costs and operating expenses, including but not limited to energy prices. One solution is to install solar with battery energy storage; however, residents must be informed of the potential risks and protocol in case of fire.

[Also read Solar keeps the affordable in affordable housing]

Lithium batteries are the most common today, yet they have been known to cause fires. Clean Energy Group (CEG) notes in its recent report that, although residential battery storage adoption doubled from 2023 to 2024, “emergency incidents are decreasing due to improved technologies, standards, and codes.” In comparison, the report states, “diesel generators (like the ones sold at hardware stores) cause an estimated 100 deaths a year, mostly due to carbon monoxide poisoning from improper use.”

The risk of fire from lithium-ion batteries is caused by thermal runaway, in which the battery enters an uncontrollable, self-heating state, which can cause a fire. As noted above, fires from lithium-ion batteries are relatively rare compared to the number of these batteries in use, and fortunately, they are highly preventable.

To ensure that battery storage is safe in multifamily housing, the project developer and local permitting authority should work together to ensure battery safety, according to the report. In addition, local fire departments as well as residents should be aware of the presence and location of the batteries and their inherent risks.

“Transparency about risks and information about the benefits and purpose of battery storage helps residents feel safe, prepared, and supported, and discourages misinformation,” CEG states.

Providing information on what the battery system does, location and safety protocols in place, the residents will gain further understanding of the benefits along with inherent risks of the technology.

Multifamily property managers should include this potential risk when informing residents about emergency evacuation routes and procedures. Because fires involving lithium-ion batteries can spread quickly and emit toxic fumes, and CEG advises that residents should be informed that, as with most other fires, they will need to evacuate the building. 

The health risk is caused by the significant amount of smoke during and after a battery fire. The gases that can be harmful to people with asthma or heart disease, as well as others. Wearing proper personal protective equipment may be considered as regular fire protocol for residents.

The risk of contaminants spreading is low, however. According to CEG, none of the large-scale battery energy storage fires in the United States since 2012 resulted in widespread contaminant risks. Studies show, the report states, that toxic gas emissions are mostly contained near the location of the fire and dissipate quickly outdoors.

After a battery fire, housing providers should work with local environmental agencies to monitor the air and water for toxic gases, heavy metals and other volatile organic compounds, according to the report.

With transparency and proper safety protocols, property owners and residents of multifamily housing can reap the many benefits of solar and battery energy storage.