Energy Storage Solutions Program
Administered by Connecticut Green Bank
Connecticut's Energy Storage Solutions Program offers upfront rebates covering up to 50% of your battery system cost, with higher incentives available if you're in an underserved community or have low income, plus annual performance payments up to $225/year for the first five years if you let the utility dispatch your stored energy during peak periods. The program runs through 2030 and is available through Eversource and United Illuminating, with batteries providing backup power during outages and potential savings when paired with solar.
This program creates customer demand for battery installations with substantial upfront incentives—residential systems receive $250–$600/kWh depending on capacity and customer type, while commercial systems range from $73–$182/kWh—plus optional 10-year performance contracts worth up to $225/year initially. Contractors should understand the declining block structure, priority customer adders (25% for grid-edge, critical facilities, and fossil fuel replacement projects), and that multifamily residential projects can now access commercial incentive rates if they equitably share resilience benefits with tenants.
The Connecticut Green Bank administers this 580 MW program (2022–2030) through Eversource and UI, with capacity split across tranches: residential receives 150 MW total (50 MW per three-year tranche) and commercial/industrial receives 430 MW (spread across four tranches due to demand reallocation in 2025). Upfront incentives use declining block pricing and serve underserved/low-income customers and grid-edge locations; performance incentives require 80% dispatch participation across 90% of events with clawback provisions for underperformance, and the program explicitly counts toward Connecticut's energy storage deployment targets.
Program details
- Program ID
- 22580
- Effective
- 1/1/2022
- Expires
- 12/31/2030
- Last updated
- 5/19/2025
Eligibility
- Sectors
- commercial industrial residential multifamily residential low income residential
- Technologies
- lithium-ion
Program summary
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. Tranche 2 is open from 2025 through 2027. The Tranche 1 capacity for the Commercial incentives reached capacity in March 2023, and Tranche 2 reached capacity in May 2024, so Tranche 3 has opened early. Starting in 2025, the existing tranches were reallocated to account for the high commercial interest and low residential interest. Instead of each customer type receiving 290 MW, residential will receive 150 MW across three tranches and commercial will receive 430 MW across four tranches.
Program Deployment Targets
| Tranche 1 | Tranche 2 | Tranche 3 | Tranche 4 | Full Program | |
|---|---|---|---|---|---|
| Residential | 50 MW | 50 MW | 50 MW | N/A | 150 MW |
| Commercial & Industrial | 50 MW | 100 MW | 140 MW | 140 MW | 430 MW |
| Total | 100 MW | 200 MW | 280 MW | 140 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 this 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 2)
| 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 | $600 | +50% |
Starting in 2025, commercial incentives also use a declining block incentive, with the value of the incentive based on the size of the system: small, medium, or large. There is also an adder for systems that service priority customers, i.e. customers located on grid edge, critical facilities, small businesses, and customers replacing a fossil fuel generator. Tranche 3 is missing 13.9 MW, as Tranche 2 was overallocated by that amount.
Commercial Upfront Incentives (Tranche 3)
| Installed Capacity | Small ($/kWh) | Medium ($/kWh) | Large ($/kWh) | Priority Customer Adder |
|---|---|---|---|---|
| First 50 MW | $182 | $159.25 | $91 | +25% |
| Next 25 MW | $164 | $143.50 | $82 | +25% |
| Final 51.1 MW | $146 | $127.75 | $73 | +25% |
Customers who applied in Year 1 of the program (2022) did not receive the priority customer adder; instead, they could participate in the forward capacity market. Starting in 2025, these participants can trade their market participation in to receive the adder, as long as the system has not yet energized.
Also starting in 2025, energy storage aggregators and multifamily residential projects can apply for commercial incentives. Multifamily residential projects must equitably share the resilience benefits of the system with tenants, instead of sharing the monetary incentives. Multifamily residential customers can install a front-of-the-meter system if a behind-the-meter system is too cost prohibitive.
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 |
If a customer does not meet the base participation requirements (80% of energy dispatched across 90% of dispatch hours), then a portion of their performance incentive will be rescinded (called a "clawback provision"), proportional to their underperformance.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
