Performance-based incentives can indeed be combined with other types of incentives for energy storage. This approach is commonly used in various state programs to maximize both customer uptake and grid value. The combination typically involves:
- Up-front Incentives: These include rebates or direct financial support at the time of installation. They reduce the initial costs of energy storage systems, making them more accessible to customers.
- Performance-Based Incentives: These compensate businesses or individuals based on the services their energy storage systems provide to the grid. This might include participation in demand response programs or contributing to grid stability.
- Combined Incentives: Many state programs provide both up-front rebates and ongoing performance-based incentives. For example, Connecticut’s Energy Storage Solutions program offers upfront rebates along with performance incentives, especially for systems enrolled in active dispatch programs.
- Additional Support: Some programs also incorporate elements like low- or no-cost financing, on-bill payment options, and equity provisions to ensure broader participation, including income-eligible customers.
Combining these incentives helps make energy storage investments more attractive by reducing costs and enhancing returns, while also promoting grid resilience and renewable integration.
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