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The little bit I know about electrical may not be any help, but I'll try. A capaciter stores charge. Your bsa should run fine without a battery, but a capaciter will help when you kickstart because there is enough electricity stored up to give it the boost it needs. When you add lights to the equation you need a battery or some sort of battery eliminator (like a magneto or box). A capaciter alone isn't enough on the british bikes I don't think. Again I'm no expert. One trick is to buy the smallest battery you can find. Honda Scooters from the 80's have tiny little batteries and they actually take a beating well. I know a couple of guys that run them in their cafe racers with a lot of success.
If I'm wrong about any of this stuff please chime in and correct me, I'm not an electrician.
If I'm wrong about any of this stuff please chime in and correct me, I'm not an electrician.