Battery Storage Incentives: What You Need to Know
Massachusetts’ new energy efficiency plan now includes incentives for solar battery storage. If you’ve been thinking about adding a solar battery, now is a great time to do so. Here’s a rundown on the incentives, eligibility, financial support, and how you can participate.
How it works
Installation, Enrollment, and Receiving Payments
First, you’ll need to install an eligible battery. Once installation is complete, enroll your home battery storage system in ConnectedSolutions. Your Mass Save sponsor will automatically send a signal to your battery when energy is needed. Most battery owners will never notice a disruption. At the end of each year, your utility will pay you an incentive based on how much you reduced your use of electricity during peak demand times.
Things to note
- This program is available to both commercial and residential customers.
- Only new battery installations are eligible.
- A critical mass of residential customers from each area will have to sign up before the utilities issue contracts.
- Your incentive rate will be locked in for the first 5 consecutive years of your contract.
- There will be 30-60 discharge events per summer season (June-Sept), and 5-15 events per winter (Dec-Mar).
- Discharge events can only occur between 2-7pm.
- Discharge events won’t be scheduled on most holidays.
- Winter discharge events won’t be called during a power outage or for the 2 days preceding predicted severe outage events.
- Each event will last a maximum of 3 hours.
- Each utility has its own set of standards and criteria.
- Other eligibility requirements may apply. See Mass Save’s overview for more information, or contact us with questions.
What's the incentive?
Your MassSave sponsor will pay $225 per kilowatt (kW) for your battery’s average contribution during summer events and $50 per kW for your battery’s average contribution during winter events. For a typical battery capable of an average 5-kW contribution during these events, the ConnectedSolutions program would pay $1,125 per year of participation. Incentive payments for summer performance will arrive in October or November each year. Incentive payments for winter performance will arrive in April or May each year.
Prior to purchase & installation, we can help you estimate performance and the annual incentive you can expect.
For commercial & industrial customers, participating utilities offer up to $200/kWh average kW reduction per summer. That translates to a $20,000 annual incentive for commercial daily dispatch customers generating an average of 100 kW over the summer!
Read more about the various programs and incentives for businesses here.
Which Batteries Qualify?
Only certain solar battery brands are eligible to participate in the incentive program. Our Sonnen batteries are eligible for National Grid. Based on our conversations with our partners, Sonnen batteries will also be eligible for Eversource on Cape Cod within the next year (they are currently eligible for customers in the rest of Massachusetts or Rhode Island).
How to earn even more with battery storage
The SMART Program and the investment tax credit (aka the federal solar tax credit) provide added incentives for energy storage systems that are charged by renewable energy systems.
SMART provides an energy storage adder that is dependent on your battery system discharging at least 52 complete cycle equivalents per year. You can read about the eligibility requirements and the adder formula here.
Solar customers may also co-participate in Net Metering and ConnectedSolutions. Net Metering provides an incentive for electricity generated from renewable sources, like solar. For more details on how net metering works alongside your battery incentives, click here.
Financial assistance for battery storage installation
If buying a solar battery is financially out of reach, then you might consider applying for a HEAT loan. This loan can help offset the costs of material and labor associated with installing a battery storage system.
You can learn more about the program details at Mass Save’s website. Also, you can always contact us to answer any questions you may have about setting up battery storage for your home or business.
Contact us for a free site assessment Find out if solar battery storage is right for you!