Residential Incentives
- Funding Levels: Residential incentives typically offer smaller funding amounts per system. For instance, Maryland’s Energy Storage Tax Credit caps residential incentives at $5,000, and federal tax credits under the Inflation Reduction Act provide up to a 30% tax credit on system costs.
- Incentive Types: Residential incentives often focus on upfront rebates or performance-based incentives. California’s Self-Generation Incentive Program (SGIP) offers $500/kWh for residential systems and higher rates for equity-focused programs, up to $1,000/kWh.
- Usage and Benefits: Residential customers primarily seek resilience and backup power during outages, with fewer opportunities to monetize storage services without state-specific performance incentives.
Commercial Incentives
- Funding Levels: Commercial incentives provide larger funding amounts due to the typically higher costs and larger system sizes involved. In Maryland, commercial incentives can reach up to $150,000, and federal incentives under the Clean Electricity Investment Credit (CEIC) can provide credits of up to 50% of project costs.
- Incentive Types: Commercial incentives often include both upfront rebates and performance-based incentives, allowing businesses to benefit from demand charge management and participating in utility demand response programs.
- Value Streams: Commercial customers have more value streams, such as savings through demand charge management and participation in wholesale energy markets, making incentives more cost-effective.
Overall, residential incentives tend to be smaller and more focused on individual system resilience, while commercial incentives are larger, reflecting the greater scale and potential savings for businesses.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-residential-and-commercial-energy-storage-incentives-differ-in-terms-of-funding-availability/
