Connecticut increases amount of incentives available to growing C&I energy storage market

The Connecticut Public Utilities Regulatory Authority (PURA) recently announced updates to its Energy Storage Solutions program, including the opening of Tranche 3 of the commercial and industrial (C&I) incentives as well as the reallocation of 140 MW of capacity from the residential sector to the C&I sector to match the growing demand for storage. 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.

In the residential sector, the market has seen a steady increase in battery installations for 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, with customers that qualify as low-income receiving $600 per kWh and customers residing in underserved communities receiving $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:

• 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.
• 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 programed 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.

News item from PURA