Several U.S. states offer notably attractive incentives for energy storage, with specific programs designed to encourage both residential and commercial adoption. Here are some of the most prominent examples:
California
- The Self-Generation Incentive Program (SGIP) in California is widely recognized as one of the best state-level storage incentives in the country.
- SGIP provides a combination of upfront rebates and performance-based payments, covering up to 50% of the battery cost upfront plus additional incentives based on how the battery performs.
- The program includes increased incentives for customers in high fire threat zones and low-income households, aiming to provide emergency backup power where it is needed most.
Connecticut
- Connecticut’s Energy Storage Solutions program offers a strong package of incentives including upfront rebates plus ongoing performance-based incentives.
- For residential customers, there is an equity focus, such as a 2x multiplier on upfront incentives for income-eligible residents, and multifamily affordable housing projects qualify for these enhanced rates.
- Commercial projects have seen strong uptake, with up to 50% upfront incentives and performance payments twice yearly for ten years based on the battery’s grid contribution during peak demand.
- Recent adjustments increased residential incentives by 25% to stimulate more adoption.
Massachusetts
- Massachusetts provides multiple programs that support battery storage, including the ConnectedSolutions program, which pays businesses for reducing energy consumption during peak demand, and the Clean Peak Standard, rewarding energy discharge during peak hours.
- The SMART Program supports solar-plus-storage projects allowing multiple incentive stacking.
- Programs like ConnectedSolutions also offer zero percent interest financing to reduce installation costs and promote grid stability.
Additional Notes
- In total, at least 16 states have formally adopted energy storage policies that include procurement targets and regulatory adaptations, reflecting growing support nationwide.
- Businesses and residents interested in energy storage incentives should closely monitor program evolutions, as incentive levels and program rules can change frequently.
Summary
California, Connecticut, and Massachusetts stand out for having particularly attractive and comprehensive energy storage incentive programs, combining upfront rebates, performance-based payments, equity considerations, and financing options to drive adoption across various customer segments.
These states offer some of the best opportunities for maximizing financial benefits linked to energy storage investments in the U.S. as of 2025.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-specific-states-that-offer-particularly-attractive-incentives-for-energy-storage/
