Connecticut adds new commercial incentives to its energy storage program

The Public Utilities Regulatory Authority (PURA) recently unveiled updates to Connecticut’s Energy Storage Solutions (ESS) program, including the opening of Tranche 3 of the commercial and industrial (C&I) incentives as well as the reallocation of 140 megawatts (MW) of capacity from the residential sector to the C&I sector to match the growing demand for storage. PURA says this reallocation will help the program achieve its goals faster and at a lower overall cost while allowing more C&I property owners to benefit.

PURA’s ESS program was adopted in 2021, positioning the state as a leader in New England’s battery energy storage space. The sprawling 9-year initiative combines up-front incentives with customer performance payments to achieve a goal of 580 MW of new distributed battery deployment. That capacity goal is evenly split between commercial and residential customers. Connecticut regulators previously rolled out a fresh batch of incentives about a year ago.

PURA reports a steady increase in battery installations in homes across Connecticut, including nearly 100 approved projects for low and moderate-income customers. Residential customers can still receive up to $16,000 in upfront incentives; customers who qualify as low-income receive $600 per kilowatt hour (kWh) and customers who live in underserved communities get $450 per kWh. These residential incentives can also qualify for a 50% adder if the customer is located on a grid circuit that experiences a greater frequency or duration of power outages than other customers. Incentives are designed to decrease over time as program capacity targets are achieved. The sooner families and businesses act to make their homes and buildings more resilient through onsite battery storage, the better.

Other approved changes to the Energy Storage Solutions program include but are not limited to:

  1. Decrease in C&I Upfront Incentives. Due to the overwhelming demand in the C&I sector, incentive rates were decreased as of December 4, 2024, for new projects. 
  1. Changes to Passive Dispatch Window. The Passive Dispatch Window has been reduced from five hours to three hours during the passive dispatch season (June-August), meaning that battery energy storage systems should be programmed to dispatch from 5 to 8 p.m. This reduction in the Passive Dispatch Window will allow for a more targeted peak reduction approach by the program’s administrators – Connecticut Green Bank, Eversource, and United Illuminating (UI) – as most of the daily peaks have historically occurred during the program in the summer between 5 to 8 p.m.  

All Energy Storage Solutions program changes were made as part of the Year Four Decision in Docket No. 24-08-05, released on December 4, 2024. The program is paid for by electric ratepayers, overseen by PURA, and administered by the Connecticut Green Bank, Eversource, and UI.

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