Hi Kory,
SAM should account for the effect of battery degradation on the project cash flow: As the battery capacity degrades over time, the battery can store less energy, and if the battery degrades to less than the battery bank replacement threshold and battery replacements are enabled on the Battery Life page, you should see a battery replacement cost in the cash flow for the year(s) they occur.
If you are not seeing those results, then it is possible that the battery is not being significantly degraded, which could happen if it is not being cycled too often, or not being deeply discharged too often, and being maintained at a reasonable temperature.
Best regards,
Paul.