State-Level Energy Storage Incentives in the US
Comparing the program structures and rates from these state energy storage programs yields the following conclusions: • State energy storage incentive programs vary
In each case, there are a number of different options and alternatives. When developing an energy storage project, a project owner can engage an EPC contractor to provide a fully-wrapped EPC agreement that will encompass the procurement, installation, and commissioning of batteries.
In addition, there are other types of energy storage incentives that have been tried. For example, storage may be added to existing renewable programs, such as solar incentive programs, or be made eligible for market-based programs such as utility renewable portfolio standards (RPS).
The energy storage incentive programs considered in this report fall into three categories: 1. Rebates (payment for installing storage) 2. Performance incentives (payment for storage services provided to a utility or grid operator) 3.
Energy storage PPAs are often tolling arrangements because developers will not want to assume the cost of electrical energy input into a project and utilities are almost always in a better position to bear that risk.
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