Energy Storage Procurement Target
Administered by California Public Utilities Commission
This program does not provide direct incentives or rebates to homeowners; it is a utility-level procurement mandate requiring California's three major investor-owned utilities (SCE, PG&E, SDG&E) to procure energy storage systems to meet statewide targets. If you are interested in energy storage for your home, check with your utility for any behind-the-meter storage programs or incentives they may offer separately.
This program creates procurement opportunities for energy storage system vendors and installers, as the three IOUs must procure a combined 1,325 MW of storage capacity by 2020 through competitive solicitations across transmission-level, distribution-level, and customer-sited installations. Contractors should monitor CPUC decisions and utility RFPs for bid opportunities, and note that lithium-ion systems are the primary technology being procured under this mandate.
AB 2514 established a 1,325 MW statewide energy storage procurement target divided among SCE (580 MW), PG&E (580 MW), and SDG&E (165 MW), with annual milestones from 2014 to 2020 and final installations by end of 2024. The CPUC oversees procurement across three grid domains (transmission, distribution, customer-sited) and has approved over 1,533 MW of new capacity to date, with over 506 MW operational; the program aims to support grid optimization, renewable integration, and GHG reductions aligned with California's clean energy targets.
Program details
- Program ID
- 22112
- Last updated
- 11/24/2025
Eligibility
- Sectors
- investor-owned utility
- Technologies
- lithium-ion
Program summary
A.B. 2514 of 2010 required the California Public Utilities Commission (CPUC) to open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure energy storage. After opening a proceeding in December 2010 to consider the matter, the CPUC adopted an energy storage procurement framework and established a statewide energy storage target of 1,325 MW by 2020, with Southern California Edison (SCE), Pacific Gas & Electric (PG&E), and San Diego Gas & Electric (SDG&E), each responsible for a portion of the total.
| Storage Grid Domain | 2014 | 2016 | 2018 | 2020 | Total |
|---|---|---|---|---|---|
| SCE | 90 MW | 120 MW | 160 MW | 210 MW | 580 MW |
| PG&E | 90 MW | 120 MW | 160 MW | 210 MW | 580 MW |
| SDG&E | 20 MW | 30 MW | 45 MW | 70 MW | 165 MW |
| Total | 200 MW | 270 MW | 365 MW | 490 MW | 1,325 MW |
The total requirement for each utility is subdivided between systems installed at the transmission level, distribution level, and customer level.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
