Incentives for Energy Storage in the U.S.
Incentives for energy storage vary significantly between different states in the U.S., reflecting diverse program structures and rates. Here’s an overview of how these incentives differ:
Types of Incentives
- Rebates: Many states offer upfront rebates for installing energy storage systems. These rebates can be a fixed amount per kilowatt-hour (kWh) and often decrease as more installations occur.
- Performance Incentives: Some programs pay for the energy services provided by storage, such as reducing peak demand.
- Combined Incentives: Some states offer both upfront rebates and ongoing performance incentives to encourage wider adoption.
State-Specific Incentives
- California: The Self-Generation Incentive Program (SGIP) is one of the most comprehensive, offering rebates and higher incentives for areas at high fire risk and for low-income households. SGIP combines upfront and performance incentives, especially for projects in high wildfire areas.
- Connecticut: The Energy Storage Solutions program offers up to $16,000 for residential customers and a significant upfront rebate for businesses, with performance incentives available for reducing grid stress.
- Massachusetts: Programs like ConnectedSolutions and the SMART Program provide financial incentives for battery installations, especially those integrated with solar (solar-plus-storage).
- New York: Offers a Market Acceleration Bridge Incentive Program with varying rates depending on location. Long Island residents can receive a $250/kWh rebate, which is rapidly being subscribed.
- New Jersey: Finalizing its Energy Storage Incentive Program, which will support both standalone and solar-plus-storage projects. Details are still being finalized.
- Maryland: Offers a tax credit for energy storage, providing up to $5,000 for residential and $75,000 for commercial installations.
Variability and Challenges
- Comparability: Due to different structures (rebates vs. performance payments) and rates (ranging from $350/kWh to $1,333.33/kWh), direct comparisons between states are challenging.
- Program Success: Success rates vary, with some states like New York having nearly fully subscribed programs despite relatively low incentive rates, while others like Connecticut have seen less uptake for residential installations.
Conclusion
The diversity of energy storage incentives reflects a broader strategy to encourage renewable energy integration and grid resilience. While incentives are crucial for adoption, factors like supportive utilities and regulations also play significant roles in program success.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-incentives-for-energy-storage-vary-between-different-states/
