Several states offer particularly strong performance-based incentives for energy storage systems, with notable programs in Connecticut, Massachusetts, and California:
Connecticut
The Energy Storage Solutions program provides upfront rebates (up to $250/kWh for residential and 50% of costs for commercial) paired with performance-based incentives paid twice annually over 10 years for grid support during peak demand. Commercial projects dominate participation, with additional incentives for low-income or multifamily housing developments.
Massachusetts
- ConnectedSolutions: Compensates businesses for reducing consumption during grid stress periods.
- Clean Peak Standard: Rewards energy discharge during seasonal/high-demand windows.
- SMART Program: Offers solar-plus-storage incentives, though 2025 updates remain pending.
California
The Self-Generation Incentive Program (SGIP) prioritizes high-fire-risk areas and low-income users, though its structure emphasizes capacity-based rebates ($/kW) rather than pure performance payments. Recent additions include backup power incentives for vulnerable communities.
Comparison Table
| State | Key Program | Incentive Type | Target Recipients |
|---|---|---|---|
| Connecticut | Energy Storage Solutions | Upfront + performance-based | Residential/Commercial |
| Massachusetts | Clean Peak Standard | Performance-based | Commercial |
| California | SGIP | Capacity-based + equity focus | High-fire-risk/low-income |
These programs reflect a broader trend toward performance-linked incentives in states with aggressive renewable energy targets, particularly in the Northeast and West Coast.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-specific-states-or-regions-that-offer-more-favorable-performance-incentives-for-energy-storage/
