Energy Storage Target
Massachusetts utilities are required to procure large amounts of energy storage through competitive long-term contracts, which may increase grid reliability and support renewable energy integration in your area; if you have an existing energy storage system, it may be eligible to participate in utility procurement proposals.
This program creates utility-driven procurement opportunities for energy storage systems through competitive solicitation, with specific targets: 1.5 GW of mid-duration storage by July 2025, 1 GW by July 2026, 1 GW by July 2027, and remaining capacity by July 2030, totaling up to 5 GW across all duration types (mid-duration, long-duration, and multi-day storage); existing systems are eligible to bid.
The Department of Energy Resources oversees utility energy storage procurement targets established by legislation (H.B. 4568, H.B. 4857, and S.B. 2967), requiring all distribution companies to jointly and competitively solicit and contract for storage capacity with specific temporal deadlines and duration requirements; an additional executive order (No. 654, 2026) sets a state-level goal of 5 GW online or under development by end of 2035 to support affordability, resilience, and decarbonization.
Program details
- Program ID
- 22113
- Last updated
- 3/18/2026
Eligibility
- Sectors
- investor-owned utility
- Technologies
- lithium-ion
Program summary
In 2016, H.B. 4568 was enacted requiring the Department of Energy Resources to determine whether or not to set targets for utilities to procure viable and cost-effective energy storage systems by January 1, 2020. Following a stakeholder process, the Department adopted a target of 200 MWh. Subsequent legislation enacted in 2018 (H.B. 4857) adopted an additional energy storage procurement target of 1,000 MWh by December 31, 2025. The bill also authorized the Department to consider a variety of policies to encourage the cost-effective deployment of energy storage systems, including the refinement of existing procurement methods to properly value energy storage systems, inclusion in energy portfolio standards, the use of alternative compliance payments to develop pilot programs, and the use of energy efficiency funds if the Department determines that energy storage systems installed at a customer’s premises provide sustainable peak load reductions on either the electric or gas distribution systems.
In 2024, legislation (S.B. 2967) was enacted directing every utility to jointly and competitively solicit proposals for energy storage systems, entering into cost-effective long-term contracts for up to 5 GW of energy storage, of which 3.5 GW must be mid-duration energy storage, 750 MW being long-duration storage, and 750 MW of multi-day storage. 1.5 GW of mid-duration storage must be procured by July 31, 2025, for environmental attributes only, 1 GW of mid-duration storage by July 31, 2026, and 1 GW of mid-duration storage by July 31, 2027, and all remaining storage capacity to be procured by July 31, 2030. In aggregate, distribution companies must enter into long-term contracts for up to 5 GW of storage by July 31, 2030, a new procurement target for the state. Existing energy storage systems are eligible to participate in any procurement proposals issued.
In early 2026, Governor Maura Healey signed Executive Order No. 654 to support energy affordability and independence, strengthen community resilience, and meet growing power needs. The order sets a target of 5 GW of additional energy storage online or under development by the end of 2035.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
