Utility Scale Energy Storage

Find Your State's Energy Storage Incentives


As highlighted in the images below, there are currently seven states with energy storage targets. Energy storage has become increasingly popular in recent times, with five of the seven states adopting, or increasing, their storage targets in the past two years. In addition, financial incentives for energy storage are currently available in at least ten states nationwide. This includes:

 

  • Rebates

  • Tax Credits

  • Sales/Property Tax Incentives

  • Performance-based Incentives

 

On this page, YSG Solar has compiled a database of the energy storage incentives available for commercial, industrial and utility projects, as well as the energy storage targets for applicable states.

 

State Energy Storage Targets & Incentives as of 4/13/2020

(Images courtesy of DSIRE | NC Clean Energy Technology Center)





Click the name of a state for a breakdown of its energy storage incentives & energy storage targets.

 



Program: Self-Generation Incentive Program

 

Budget: $166 million annually

 

Website: https://www.selfgenca.com/

 

Administrator: California Public Utilities Commission

 

Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Institutional

 

Max. Incentive Value: $5 million/60% of eligible project costs—whichever is less. Payment is capped at 3 MW.

 

Eligible Utilities:

 

  • Pacific Gas & Electric Co.

  • San Diego Gas & Electric Co.

  • Southern California Edison Co.

 

Program Summary:

The SGIP, originally initiated in 2001, offers incentives for customers producing electricity with a range of generation technologies and advanced energy storage. The program’s original expiration date has been extended on a number of occasions and now stands at January 1, 2021.

 

Incentives: 

 

  • Large Scale Storage Not Claiming ITC: $0.35/Wh - $0.40/Wh depending on utility

  • Large Scale Storage Claiming ITC: $0.25/Wh - $0.29/Wh depending on utility

  • Non-Residential Storage Equity Not Claiming ITC: $0.35/Wh - $0.50/Wh 

  • Non-Residential Storage Equity Claiming ITC: $0.25/Wh - $0.40/Wh

 

Incentive Distribution:

 

  • Projects under 30 kW: 100% of incentive upfront.

  • Projects 30kW or greater: 50% of incentive upfront + 50% of incentive based on actual performance across five years.

 

Source:

https://programs.dsireusa.org/system/program/detail/552



Program: Energy Storage Procurement Target

 

Website: https://www.cpuc.ca.gov/General.aspx?id=3462

 

Administrator: California Public Utilities Commission

 

Sectors: Investor-owned Utilities

 

Technology: Lithium-ion batteries

 

Program Summary:

In 2010, A.B. 2514 required that the California Public Utilities Commission (CPUC) determine energy storage procurement targets, if necessary, for each load-serving entity. This resulted in the establishment of an energy storage target for the entire state of California, 1,325 MW by 2020.

 

Source:

https://programs.dsireusa.org/system/program/detail/22112

 



Program: JEA Battery Incentive Program

 

Website: https://www.jea.com/ways_to_save/residential_rebates/solar_battery_incentive_program/

 

Administrator: JEA (Jacksonville Electric Authority)

 

Sectors: Commercial, Residential

 

Incentive Amount: $4,000

 

Program Summary:

Jacksonville Electric Authority is offering a $4,000 rebate for the purchase of eligible battery storage systems (only new batteries, replacements do not qualify). The rebate is available to energy storage customers in the commercial and residential sectors.

 

Eligibility Requirements:

 

  • Batteries

    • Usable capacity rating of at least 6 kWh.

    • Warranty of at least 10 years (or 5,000 cycles).

  • Customers

    • Must have a renewable energy system installed.

    • Battery must be charged by this renewable energy system.

 

Incentive: 

 

  • Lithium-ion batteries

  • Commercial & Residential sectors

  • $4,000 rebate available

 

Source:

https://programs.dsireusa.org/system/program/detail/22078

 



Program: Energy Storage Tax Credit

 


Budget: $750,000 (per year)

 

Website: https://energy.maryland.gov/business/Pages/EnergyStorage.aspx

 

Administrator: Maryland Energy Administration

 

Sectors: Commercial, Industrial, Residential, Agricultural, Multifamily Residential

 

Incentive Value: 30% of installed system costs

 

Max. Incentive Values: 

 

  • $5,000 for Residential Systems

  • $75,000 for Commercial Systems

 

Technologies: Lithium-ion batteries

 

Program Summary:

Maryland offers a tax credit for the installation of energy storage systems on commercial/residential properties. This tax credit covers 30% of installed system costs up to a maximum of $5,000 for residential systems and $75,000 for commercial systems. The tax credit will be offered on a first come, first served basis until the funding, outlined below, has been exhausted. If an application is received after funding has been oversubscribed, applicants will be placed on a waitlist for the current tax year. The waitlist will not be transferred to the next tax year.

 

Funding:

 

  • Residential: $300,000

  • Commercial: $450,000

 

Source:

https://programs.dsireusa.org/system/program/detail/22076

 



Program: Energy Storage Target

 

Website: https://www.mass.gov/energy-storage-initiative

 

Administrator: State of Massachusetts

 

Sectors: Investor-Owned Utilities

 

Technology: Lithium-ion batteries

 

Program Summary:

Originally adopting an energy storage target of 200 MWh, the Massachusetts Department of Energy Resources later extended the energy storage procurement target to 1,000 MWh by Dec. 31, 2025. This resulted from legislation enacted in H.B. 4857.

 

Source:

https://programs.dsireusa.org/system/program/detail/22113



Program: Net Metering & Energy Storage

 

Website: https://www.mass.gov/net-metering

 

Administrator: State of Massachusetts

 

Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional

 

Technology: Lithium-ion batteries

 

Program Summary:

In February 2019, the Department of Public Utilities (DPU) issued an order authorizing the net metering of eligible net metering facilities that are paired with energy storage systems. There are three possible configurations for this net metering & energy storage process:

 

1) Storage system charges only from net metering facility & cannot export.

2) Storage system charges only from net metering facility & can export.

3) Storage system charges from grid OR net metering facility & cannot export.

 

Source:

https://programs.dsireusa.org/system/program/detail/281



Program: Solar Massachusetts Renewable Target (SMART)

 

Website: http://masmartsolar.com/

 

Administrator: Department of Energy Resources / CLEAResult

 

Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Multifamily Residential, Low Income Residential, Institutional

 

Technology: Lithium-ion batteries

 

Program Summary:

The SMART Program offers per-kWh incentives for solar projects up to 5 MW in size. This includes solar projects operating alongside energy storage systems.

 

For projects co-located with energy storage systems, there is a compensation rate adder available. The compensation rate adder for energy storage projects is variable and based upon the formula outlined in this document, 225 CMR 20.00.

 

Incentive Amounts:

 

  • Standalone Solar Projects:

    • (Base compensation rate + compensation rate adders - greenfield subtractor) * total kWh generated - value of energy generated

  • Behind-the-meter Solar Projects:

    • (Base compensation rate + compensation rate adders - greenfield subtractor) - (distribution kWh charge + transmission kWh charge + transition kWh charge + three-year average of basic service kWh charge)

 

Source:

https://programs.dsireusa.org/system/program/detail/22111

 



Program: Energy Storage Procurement Target

 

Website: https://www.leg.state.nv.us/App/NELIS/REL/79th2017/Bill/5078/Text

 

Administrator: State of Nevada

 

Sectors: Investor-owned Utilities

 

Technology: Lithium-ion batteries

 

Program Summary:

In May 2017, S.B. 204 was enacted, requiring the Public Utilities Commission of Nevada (PUCN) to determine the necessity of energy storage procurement targets. Following this, it was determined that energy storage procurement targets were necessary, and so a target of 1,000 MW by 2030 was set out. Logical milestone targets along the way include the following:

 

  • 100 MW by Dec. 31, 2020.

  • 200 MW by Dec. 31, 2022.

  • 400 MW by Dec. 31, 2024.

  • 600 MW by Dec 31. 2026.

  • 800 MW by Dec 31. 2028.

 

Source:

https://programs.dsireusa.org/system/program/detail/22112



Program: NV Energy | Energy Storage Incentive

 

Website: https://www.nvenergy.com/cleanenergy/energy-storage

 

Administrator: NV Energy

 

Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Institutional

 

Max. Incentive Values:

For all values listed below, whichever amount is smaller (monetary value or percentage) will be applied.

 

  • Residential Systems: 50% or $3,000

  • Commercial Systems 4 kw - 100 kW: 50% or $50,000

  • Commercial Systems 100 kw - 1,000 kW (Critical Infrastructure): 50% or $400,000

  • Commercial Systems 100 kw - 1,000 kW (Non-Critical Infrastructure): 50% or $300,000

 

Technology: Lithium-ion batteries

 

Program Summary:

The incentive, provided by NV Energy, encourages customers to install energy storage systems on both commercial and residential properties. Customers must have a prior renewable energy system installation, or be in the process of installing a renewable energy system alongside the energy storage system. Standalone energy storage systems do not qualify for the incentive.

 

Eligibility Requirements:

 

  • Capacity: 

    • Commercial Systems: 4 kW - 1,000 kW

    • Residential Systems: 4 kW - 100 kW capacity

  • Equipment:

    • Commercially available system

    • UL listed

    • Connected to net metering

  • Warranties:

    • 10 years for storage device

    • 7 years for inverter

    • 2 years for labor

 

Incentives: 

 

  • Commercial Systems 4 kw - 100 kW eligible for ITC: $0.25/Wh

  • Commercial Systems 4 kw - 100 kW not eligible for ITC: $0.35/Wh

  • Commercial Systems 100 kw - 1,000 kW Critical Infrastructure eligible for ITC: $0.40/Wh

  • Commercial Systems 100 kw - 1,000 kW Critical Infrastructure not eligible for ITC: $0.50/Wh

  • Commercial Systems 100 kw - 1,000 kW Non-Critical Infrastructure eligible for the ITC: $0.30/Wh

  • Commercial Systems 100 kw - 1,000 kW Non-Critical Infrastructure not eligible for the ITC: $0.40/Wh

 

Source:

https://programs.dsireusa.org/system/program/detail/22075

 



Program: Energy Storage Procurement Target

 

Website: https://www.njleg.state.nj.us/2018/Bills/PL18/17_.PDF

 

Administrator: State of New Jersey

 

Sectors: Investor-owned Utilities

 

Technology: Lithium-ion batteries

 

Program Summary:

The State of New Jersey has established energy storage procurement targets of:

 

  • 600 MW by 2021.

  • 2,000 MW by 2030.

 

In 2018, A.B. 3723 required the New Jersey Board of Public Utilities to establish a process for achieving these energy storage goals.

 

Source:

https://programs.dsireusa.org/system/program/detail/22114



Program: Renewable Electric Storage

 

Website: http://njcleanenergy.com/renewable-energy/programs/energy-storage

 

Administrator: NJ Clean Energy Program

 

Sectors: Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Appliance Manufacturers

 

Technology: Lithium-ion batteries

 

Program Summary:

This rebate program offers financial incentives for energy storage systems which are installed with Class 1 Renewable Energy Projects at behind-the-meter, non-residential sites. The program is not currently (4/30/2020) accepting new applications, but you can contact storage@njcleanenergy.com with any questions.

 

Source:

https://programs.dsireusa.org/system/program/detail/22100

 



Program: Energy Storage Target

 

Website: https://www.nyserda.ny.gov/All-Programs/Programs/Energy-Storage

 

Administrator: New York State Energy Research and Development Authority (NYSERDA)

 

Sectors: Investor-Owned Utility, State Government

 

Technology: Lithium-ion batteries

 

Program Summary: 

Following an order from the New York Public Service Commission (PSC) in 2018, an energy storage deployment target of 3,000 MW by 2030 has been adopted. This includes a milestone target of 1,500 MW by 2025. To achieve this target, NYSERDA is offering both a Bulk Energy Storage Incentive and a Retail Energy Storage Incentive.

 

Source:

https://programs.dsireusa.org/system/program/detail/22115



Program: ConEd Demand Management for Industrial and Commercial Customers

 

Website: https://www.coned.com/en/save-money/rebates-incentives-tax-credits/rebates-incentives-tax-credits-for-commercial-industrial-buildings-customers/demand-management-incentives

 

Administrator: ConEdison

 

Sectors: Commercial, Industrial, Nonprofit, Installers/Contractors, Agricultural, Appliance Manufacturers

 

Technology: Lithium-ion batteries

 

Program Summary: 

With this program, Con Edison is offering incentives for energy efficiency technologies which serve to reduce peak grid load—including energy storage systems. You must be a ConEdison large electric customer to avail of this program.

 

Incentive Amount:

 

  • Battery Storage: $1,620/kW

 

Max. Incentive Values: Up to 70% of project cost

 

Source:

https://programs.dsireusa.org/system/program/detail/22108



Program: NYSERDA Retail Energy Storage Incentive Program

 

Website: https://www.nyserda.ny.gov/retailstorage

 

Administrator: NYSERDA

 

Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Multifamily Residential

 

Technology: Lithium-ion batteries

 

Program Summary: 

NYSERDA’s Retail Energy Storage Incentive Program has been established to help New York reach its energy storage target of 3,000 MW by 2030. This incentive is available for projects that are smaller than 5 MW (AC) and are either behind-the-meter, or interconnected directly to the distribution system. The energy storage system in question must be capable of maintaining minimum 70% round trip efficiency.

 

Eligibility:

 

  • System Size: Up to 5 MW (AC).

  • Equipment: Must be commercial products with a warranty of at least ten years, installed in compliance with NYSERDA guidelines, by a participating installer.

 

Incentive Amounts (as of Q1 2020):

These amounts are dependent on the MWh block.

 

  • Rest of the state: $250/kWh

  • New York City: $300/kWh

  • Long Island: $250/kWh

 

Max. Incentive Values: These incentives are offered up to 15 MWh per project.

 

Incentive Calculation Process:

The incentive is relative to the size of the system’s usable energy storage capacity (kWh AC). This capacity is tracked by region on the Mega Watt Hours Block website. As more capacity is installed in a region, the incentive will decrease proportionally to a lower $/kWh rate.

 

Source:

https://programs.dsireusa.org/system/program/detail/22098



Program: NYSERDA Bulk Energy Storage Incentive Program

 

Website: https://www.nyserda.ny.gov/All-Programs/Programs/Energy-Storage/Developers-Contractors-and-Vendors/Bulk-Storage-Incentives

 

Administrator: NYSERDA

 

Sectors: Commercial, Construction, Industrial, Local Government, Residential, Schools, State Government, Federal Government, Installers/Contractors, Agricultural, Multifamily Residential, Low Income Residential, Senior citizens

 

Technology: Lithium-ion batteries

 

Program Expiration Date: 12/31/2025

 

Program Summary: 

NYSERDA’s Bulk Energy Storage Incentive Program has been established to help New York reach its energy storage target of 3,000 MW by 2030. This incentive is available for projects that are bigger than 5 MW (AC) and connected to the energy grid. The storage system in question must serve the wholesale energy market, ancillary services, or distribution level service, and may be standalone or paired with a distributed energy system such as solar. The energy storage system in question must be capable of maintaining minimum 70% round trip efficiency. Incentive values are based on the year in which the project application is submitted.

 

Eligibility:

 

  • System Size: Greater than 5 MW (AC). No upper limit.

  • Equipment: Must include a warranty from the manufacturer and be UL 9540 or CAN 9540 certified. Applicable UL 1973, UL 1642, UL 1741, or UL 62109.

  • Project: Installed in NY state and NYISO region & connected to electric grid. 

 

Incentive Amounts (projects below 20 MW):

 

  • 2019: $110/kWh

  • 2020: $100/kWh

  • 2021: $90/kWh

  • 2022: $80/kWh

  • 2023: $70/kWh

  • 2024: $60/kWh

  • 2025: $50/kWh

 

Incentive Amounts (projects above 20 MW):

 

  • Projects starting 2019: $85/kWh

  • Projects developed 2021 - 2022: $75/kWh

 

Max. Incentive Values: $25 million (per project)

 

Incentive Calculation Process:

The incentive is relative to the size of the system’s usable energy storage capacity (kWh AC) at commercial operation date. If a project only provides energy arbitrage and/or ancillary services, only 75% of the stated incentive for that year will apply.

 

Source:

https://programs.dsireusa.org/system/program/detail/22097

 



Program: Energy Storage Procurement Target

 

Website: https://olis.leg.state.or.us/liz/2015R1/Downloads/MeasureDocument/HB2193

 

Administrator: State of Oregon

 

Sectors: Investor-owned Utilities

 

Technology: Lithium-ion batteries

 

Program Summary:

In 2015, H.B. 2193 gave utility companies with 25,000 or more customers a target. The utilities in question, Portland General Electric and PacifiCorp, were directed to procure energy storage systems capable of storing at least 5 MWh by January 1, 2020.

 

Source:

https://programs.dsireusa.org/system/program/detail/22117

 



Program: Energy Innovation Grant

 

Budget: $5 million

 

Website: https://psc.wi.gov/Pages/Programs/OEI/EnergyInnovationGrantProgram.aspx

 

Administrator: Public Service Commission of Wisconsin

 

Eligible Technologies: Geothermal Electric, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Geothermal Direct-Use, Lighting, Energy Mgmt. Systems/Building Controls, Building Insulation, Building Systems, HVAC, Lithium-ion Batteries 

 

Program Summary:

(Note: this program’s last solicitation took place in October 2018.)

 

Grants are offered for certain, qualifying energy projects. These grants are administered by the Public Service Commission of Wisconsin's Office of Energy Innovation.

 

Eligible Applicants:

 

  • Municipal/Tribal Governments

  • K-12 School Districts

  • Manufacturers

 

Eligible Projects:

 

  • Building Energy Efficiency

  • Energy Storage

  • Renewable Energy

  • Alternative Fuel Transportation

  • Facility & Fleet Audits

  • Comprehensive Energy Plans

  • Feasibility Studies

  • Relevant Training & Operations

 

Source:

https://programs.dsireusa.org/system/program/detail/22074





YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.



(All information on this page is courtesy of DSIRE | NC Clean Energy Technology Center.)


(Featured image is courtesy of Edify Energy.)

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