Several states in the U.S. offer notably high performance incentives for energy storage, with programs that include both upfront rebates and ongoing performance-based payments to encourage adoption and grid support.
Top States Offering High Performance Incentives for Energy Storage
California
California’s Self-Generation Incentive Program (SGIP) is one of the most recognized state-level storage incentive programs. It provides rebates based on the kilowatt capacity of energy storage systems installed. The program is designed with stepped-down rebate levels as adoption increases but offers higher incentives for those in high fire threat districts and low-income customers who need emergency backup power. This program combines upfront rebates with targeted higher incentives to support vulnerable communities.
Connecticut
Connecticut’s Energy Storage Solutions program offers generous upfront rebates plus ongoing performance-based incentives paid semi-annually for up to 10 years. Businesses get a 50% upfront incentive when the storage system is connected to the grid and participates in grid demand reduction during peak times. Residential customers can receive up to $16,000 per installation and additional incentives based on energy discharged to the grid. The program is especially supportive of commercial projects and includes extra funding for low-income and affordable housing developments.
Massachusetts
Massachusetts has multiple incentives supporting battery storage through programs like the ConnectedSolutions and the SMART program. The ConnectedSolutions program pays businesses for reducing energy consumption during peak demand and rewards for discharging stored energy during peak hours. Additionally, finance options like zero-percent interest loans help reduce installation costs. Although the SMART program recently updated, it still offers benefits to solar-plus-storage projects, combining multiple financial incentives for maximum value.
New York and Rhode Island
These states also have established energy storage incentive programs (e.g., New York’s Bridge Incentive Program and Rhode Island’s ConnectedSolutions) that provide substantial support, though their structure and rates differ. New York’s incentives are somewhat lower per kWh but the program is highly subscribed, indicating strong market uptake.
Summary
- California’s SGIP is noted for high rebates, especially for vulnerable customers.
- Connecticut offers both very high upfront rebates and long-term performance payments, particularly attractive for commercial and low-income projects.
- Massachusetts provides multiple layered incentives including performance payments and financing options.
- New York and Rhode Island have strong programs, though incentive rates may be lower than Connecticut or California.
These programs exemplify the highest performance incentives available, combining upfront financial support with ongoing payments that reward actual grid benefits from stored energy usage during peak demand periods.
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