Note: The MW approved through this program will be counted towards the state's energy storage targets.
The Energy Storage Solutions Program provides incentives to residential and commercial customers to install energy storage systems. The program is administered by the Connecticut Green Bank, though the incentives are provided through the state's utilities, Eversource and United Illuminating. The program will run for nine years, from 2022 through 2030.
The program has a cap of 580 MW, spread across three tranches. Tranche 1 is open for the first three years of the program -- 2022 through 2024. The Tranche 1 capacity for the Commercial incentives reached capacity in March 2023, so Tranche 2 has opened early; as of December 2023, around 35 MW of Tranche 2 have been approved.
Program Deployment Targets
| Tranche 1 (2022-2024) |
Tranche 2 (2025-2027) |
Tranche 3 (2028-2030) |
Full Program | |
|---|---|---|---|---|
| Residential |
50 MW | 100 MW | 140 MW |
290 MW |
| Commercial and Industrial |
50 MW | 100 MW | 140 MW | 290 MW |
| Total |
100 MW | 200 MW | 280 MW | 580 MW |
Upfront Incentives
The program offers upfront incentives for purchasing and installing an energy storage system, up to 50% of project cost. Residential incentives use a declining block structure; as more systems are approved, the incentive value decreases. Systems that service underserved communities or low-income customers can receive a larger incentive, and the incentive is not subject to the declining block structure. There is also an adder for systems that serve customers located on grid edge.
Residential Upfront Incentives (Tranche 1)
| Installed Capacity |
Baseline ($/kWh) |
Underserved Community ($/kWh) |
Low-Income ($/kWh) |
Grid Edge Adder |
|---|---|---|---|---|
| First 10 MW |
$250 | $450 | $600 | +50% |
| Next 15 MW |
$212.50 | $450 | $600 | +50% |
| Final 25 MW |
$162.50 | $450 | $600 | +50% |
Commercial incentives stay flat regardless of enrolled MW, but the incentive value will depend on the customer type: small commercial, large commercial, or industrial. There is also an adder for systems that service priority customers, i.e. customers located on grid edge, critical facilities, small businesses, and customers replacing a fossil fuel generator.
Commercial Upfront Incentives (Tranche 1 and 2)
| Installed Capacity |
Small Commercial ($/kWh) |
Large Commercial ($/kWh) |
Industrial ($/kWh) |
Priority Customer Adder |
|---|---|---|---|---|
| Tranche 1 |
$250 | $175 | $100 | +25% |
| Tranche 2 |
$250 | $175 | $100 | +25% |
Performance Incentives
The program also offers a per-kWh performance incentive. Under the performance program, the utilities can dispatch a system's stored energy during appropriate events in both the summer and the winter. In return, the customer will receive an annual lump sum. The performance incentive is available on a 10-year contract. Customers can receive a maximum of $225/year in the first five years and a maximum of $130/year in the last five years.
Performance-Based Incentives
| Years 1 - 5 | Years 6 - 10 | ||
|---|---|---|---|
| Summer ($/kW) |
Winter ($/kW) |
Summer ($/kW) |
Winter ($/kW) |
| $200 |
$25 |
$115 |
$15 |
| Implementing Sector: | State |
| Category: | Financial Incentive |
| State: | Connecticut |
| Incentive Type: | Rebate Program |
| Web Site: | https://energystoragect.com/ |
| Administrator: | Connecticut Green Bank |
| Start Date: | |
| Eligible Renewable/Other Technologies: |
|
| Incentive Amount: |
Upfront: Residential: $250/kWh for first 10 MW, $212.50/kWh for next 15 MW, $162.50/kWh for final 25 MW Residential Underserved Community: $450/kWh Residential Low-Income: $600/kWh Residential Grid Edge Adder: +50% Small Commercial: $200/kWh Large Commercial: $175/kWh Industrial: $100/kWh C&I Priority Customer Adder: +25% Performance: First 5 years: $200/summer, $25/winter Final 5 years: $115/summer, $15/winter |
| Maximum Incentive: |
Upfront: up to 50% of project cost. Residential incentives also have a maximum of $16,000 Performance: $225/year in first five years of participation, $130/year in last five years of participation |
| Eligible System Size: |
Residential: no specified limit, but incentive maximum is $16,000 Small Commercial: less than 200 kW Large Commercial: 200 - 500 kW Industrial: at least 500 kW |
| Equipment Requirements: | see program website |
| Installation Requirements: | see program website |
| Ownership of Renewable Energy Credits: | N/A |
| Technologies: | Lithium-ion |
| Sectors: | Residential |
| Parameters: | The incentive is 250.00 $/kWh |
| Technologies: | Lithium-ion |
| Sectors: | Low Income Residential |
| Parameters: | The incentive has a maximum of 450.00 $/kWh, The incentive has a minimum of 600.00 $/kWh |
| Technologies: | Lithium-ion |
| Sectors: | Commercial, Industrial |
| Parameters: | The incentive has a maximum of 100.00 $/kWh, The incentive has a minimum of 0.00 null |
| Technologies: | Lithium-ion |
| Sectors: | Commercial, Industrial, Residential, Low Income Residential |
| Parameters: | The incentive is 225.00 $/kW, The incentive is 130.00 $/kW |
| Name: | Conn. Gen. Stat. § 16-243ee |
| Date Enacted: | 06/16/2021 |
| Effective Date: | 07/01/2021 |
| Name: | PURA Year 3 Decision (Docket 23-08-05) |
| Date Enacted: | 11/29/2023 |
| Effective Date: | 01/01/2024 |
| Expiration Date: | 12/31/2024 |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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