Several states and regions in the U.S. offer notably attractive performance incentives for energy storage, with key programs providing upfront rebates combined with ongoing performance-based payments to encourage battery storage deployment.
States with Attractive Energy Storage Performance Incentives
California
– California’s Self-Generation Incentive Program (SGIP) is one of the best-known and robust state-level battery storage incentives. It offers rebates based on installed capacity ($/kW) and includes enhanced funding and higher incentives for customers in high fire threat districts and low-income households. This program supports both grid resilience and equity goals by providing emergency backup power to vulnerable populations.
Connecticut
– Connecticut’s Energy Storage Solutions program combines upfront rebates that can cover up to 50% of the battery cost with performance incentives paid twice annually for ten years. This program rewards batteries that reduce grid stress during peak summer days.
– The program also has strong equity provisions, including a 2x multiplier on upfront incentives for income-eligible residential customers and expansion to multifamily affordable housing, boosting uptake in disadvantaged communities.
– After initial success on the commercial side, residential incentives were increased from $200/kWh to $250/kWh to encourage more participation.
Massachusetts
– Massachusetts offers multiple programs incentivizing energy storage, including the ConnectedSolutions program, which pays commercial businesses for reducing energy use during peak demand, and the Clean Peak Standard, which rewards discharging stored energy at peak times.
– Its SMART Program supports solar-plus-storage projects, allowing stacking of benefits to maximize returns.
– The Mass Save ConnectedSolutions program offers financial incentives plus zero-interest financing to reduce installation costs and enhance grid stability.
Overview
These states stand out because their programs are multifaceted—offering upfront cost reductions and sustained performance incentives that reward storage systems for helping manage grid demand and enhancing reliability. Moreover, equity considerations in Connecticut and California ensure benefits reach low-income and vulnerable populations.
Summary Table of Notable State Incentives
| State | Incentive Type | Key Features | Focus Areas |
|---|---|---|---|
| California | SGIP rebate + enhanced funding | Rebates per kW with higher incentives in fire-risk/low-income areas | Emergency backup, fire resilience |
| Connecticut | Upfront rebate + performance incentives | Up to 50% cost offset + payments for grid stress reduction; equity multipliers for low-income households | Equity, grid stress relief |
| Massachusetts | Multiple programs including ConnectedSolutions, Clean Peak Standard, SMART | Incentives for peak reduction and solar+storage projects; zero-interest financing | Peak load management, solar integration |
In conclusion, states like California, Connecticut, and Massachusetts currently offer some of the most attractive and layered energy storage performance incentives in the U.S., with structured payments encouraging both immediate deployment and long-term grid value.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-specific-states-or-regions-that-offer-more-attractive-performance-incentives-for-energy-storage/
