Advanced battery degradation models are extremely effective to optimize sizing and operational strategies of batteries. The models can be used to make informed decisions or be integrated in real time algorithms. In general, it is unpractical to embed advanced degradation models. However, we find that complex degradation models can be mapped offline in simple look-up tables and then used online in the power/current derating strategies. This framework is evaluated in experimentally validated simulations of an outdoors-installed Battery Energy Storage System (BESS) with passive thermal management, which operates in a residential photovoltaic application. In comparison to standard derating, the degradation-aware derating achieves: (1) increase of battery lifetime by 65%; (2) increase in energy throughput over lifetime by 49%, while III) energy throughput per year is reduced by only 9.5%. These results show that this is a game-changing method to prolong lifetime and ease thermal management. Given the effectiveness and universal applicability of this framework, it has potential to become the new industry standard in battery derating.