State and Utility Programs · Checked October 13, 2026
Battery rebates and virtual power plant (VPP) programs in 20 states plus federal credits: what each VPP pays, how it is measured, and a worked example.
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Each state buys a different kind of grid flexibility from batteries. Massachusetts and Connecticut pay for summer peak capacity. New Jersey and Maryland target local distribution relief. Texas sells reserves into a wholesale market. Vermont pays upfront for a decade of utility access. The U.S. Department of Energy describes demand flexibility as the ability of on-site resources to “reduce, shed, shift, modulate, or generate electricity” (Lawrence Berkeley National Laboratory). How a state values that ability sets what a battery earns there.
The chart compares ongoing pay per kW-year. To estimate a year’s gross payment, multiply the rate by the battery’s average kW during events, which is usually less than its inverter rating. Upfront-only programs such as Vermont’s are not on the chart.
Ongoing VPP pay per kW of average event contribution, per year
Standard tier and typical event length; color shows status
Swipe to see the full chart →
California built the country’s largest battery VPP through Demand Side Grid Support (DSGS), but the final 2026–27 budget added no funding for 2027 (Canary Media). The Self-Generation Incentive Program (SGIP) equity budget is now the main upfront incentive, and it is waitlisted in most territories (SCE). DSGS does not allow dual pay with the Emergency Load Reduction Program or other programs paying for the same reduction (DSGS Guidelines, 5th ed.).
Worked example (gross): A battery averaging 5 kW for 3-hour DSGS events earned about $373 of capacity pay in 2026 at $74.52/kW, before the aggregator’s share (California Energy Commission). A 13.5 kWh battery at the SGIP equity rate would receive $14,850, if funds reach the waitlist (SCE).
California Energy Commission, through aggregators
Pays: $62.10–$82.80 per kW-year of capacity for 2- to 4-hour events, paid to the aggregator, which passes on a share.
Cap or limit: Option 3 allocated $19.5 million, expandable to $42.7 million (about 530 MW). Option 1 suspended for 2026.
Dates: 2026 season May 1–Oct 31. The final 2026–27 state budget added no 2027 funding.
CPUC program, run by PG&E, SCE, SoCalGas and CSE
Pays: Residential Solar and Storage Equity budget: $1.10 per Wh of storage and $3.10 per W of solar.
Cap or limit: Waitlisted in most territories; open only for publicly owned utility customers assigned to PG&E or SCE.
Dates: Ratepayer-funded budgets closed after Dec 30, 2025. Equity applications accepted through June 30, 2028.
Ava Community Energy (East Bay)
Pays: Installation rebate that varies by income and battery size, plus participation payments for 5 years.
Cap or limit: Ava Community Energy customers only.
Dates: Ongoing.
ConnectedSolutions pays on measured average contribution during summer events, not on battery size (Mass Save). Batteries paired with solar can also earn the SMART storage adder.
Worked example (gross): A battery averaging 5 kW across events earns about $1,375 a summer, or $6,875 over the 5-year rate lock, gross (Mass Save).
Wholesale access: ISO New England opens its energy and reserve markets to aggregations on November 1, 2026 (ISO New England).
Mass Save utilities
Pays: Residential: $275 per kW of average event contribution per summer, rate locked for 5 years. Commercial: $200/kW daily dispatch or $45/kW targeted dispatch.
Cap or limit: Residential inverter under 50 kW. No published enrollment cap.
Dates: June–Sept, 3–8 p.m., up to 60 events of up to 3 hours.
Since April 1, 2026, Energy Storage Solutions pays mostly through performance: a small enrollment payment plus 10 years of per-kW pay, with higher rates for underserved and low-income customers (Energy Storage Solutions).
Worked example (gross): A 13.5 kWh standard battery averaging 5 kW receives $405 at enrollment plus $1,500 a year, about $15,405 over 10 years, gross. At the low-income rate the 10-year figure is about $27,905 (Energy Storage Solutions).
Wholesale access: ISO New England opens its energy and reserve markets to aggregations on November 1, 2026 (ISO New England).
Eversource and United Illuminating
Pays: Enrollment $30/kWh ($130/kWh grid-edge). Performance $300/kW-year standard, $450 underserved, $550 low-income, for 10 years. Commercial $325 or $275/kW, then $175/kW.
Cap or limit: No cap published on the April 2026 rules page. Passive dispatch closed to new customers.
Dates: Current structure for applications on or after Apr 1, 2026. About 50 summer and 5 winter events.
New York links its upfront and ongoing pay. NYSERDA’s storage incentive requires enrollment in the local utility’s Bring Your Own Battery (BYOB) program (NYSERDA utility program overview). Con Edison pays twice the upstate rate for 2026 (Con Edison).
Worked example (gross): In Con Edison territory, a 13.5 kWh battery at the $250/kWh launch rate receives $3,375 upfront, plus about $500 a year at 5 kW. Upstate, the same battery receives $2,700 upfront and about $250 a year (Central Hudson).
Wholesale access: NYISO targets full FERC Order 2222 implementation on December 31, 2026 (PNNL).
Con Edison
Pays: $100 per kW of average seasonal performance for 2026, paid after the season.
Cap or limit: Systems up to 50 kW, enrolled through an approved service provider.
Dates: May 1–Sept 30; events up to 4 hours between 8 a.m. and midnight. Enrollment rolls over.
National Grid, NYSEG, RG&E, Orange & Rockland
Pays: $50 per kW-year of average event performance.
Cap or limit: Enrollment has been required to receive the NYSERDA storage incentive since Mar 1, 2026.
Dates: May 1–Sept 30 seasons.
Central Hudson
Pays: Statewide $50/kW-year price signal expected; final terms not yet published.
Cap or limit: Central Hudson customers.
Dates: Launch expected later in 2026.
NYSERDA
Pays: Launch rates of $250/kWh in Con Edison territory and $200/kWh elsewhere; Inclusive Storage Incentive $450/kWh.
Cap or limit: Up to 25 kWh per project. Block-based: rates step down as blocks fill, so check the dashboard.
Dates: Requires enrollment in the local utility BYOB program.
Green Mountain Power (GMP) pays once, upfront, for 10 years of grid access. About 5,500 homes take part in its battery programs, and GMP also leases batteries for $55 a month (WebProNews). Peak events run about 5–8 times a month (Enphase). The battery may not be used for other controls beyond backup power, which rules out separate time-of-use (TOU) cycling (Green Mountain Power).
Worked example (gross): A battery committing 5 kW for 3-hour events receives $4,250 upfront. At 10 kW and 4 hours it reaches $9,500, and the high-need solar retrofit adder can take it to the $10,500 cap (Green Mountain Power).
Wholesale access: ISO New England opens its energy and reserve markets to aggregations on November 1, 2026 (ISO New England).
Green Mountain Power
Pays: $850/kW for a 3-hour commitment or $950/kW for 4 hours, up to 10 kW and $10,500; plus $100/kW for solar retrofits in high-need areas.
Cap or limit: Annual MW limits in the tariff. 10-year term with prorated repayment for early exit; $3.97/month integration fee.
Dates: Still enrolling in October 2026, although the tariff text lists Sept 30, 2026 “unless otherwise ordered.”
Eversource New Hampshire offers an upfront per-kWh rebate tied to summer events (CESA VPP table).
Worked example (gross): A 13.5 kWh battery reaches the $3,000 cap ($230 × 13.5 = $3,105).
Wholesale access: ISO New England opens its energy and reserve markets to aggregations on November 1, 2026 (ISO New England).
Eversource New Hampshire
Pays: $230 per kWh, up to $3,000.
Cap or limit: Program funds; confirm current availability with Eversource.
Dates: Summer peak events.
New Jersey’s first VPP block is still a proposal: about 150 MW of behind-the-meter batteries run by the four investor-owned utilities, paid on performance (NJ BPU).
Worked example (gross): If adopted as proposed, a battery averaging 5 kW would earn $1,000 a year, or $10,000 over 10 years, gross.
Wholesale access: PJM opens energy and ancillary services to aggregations on February 1, 2028 (PJM).
NJ Board of Public Utilities; ACE, JCP&L, PSE&G, Rockland Electric
Pays: $200 per kW-year for 10 years, based on performance (straw proposal).
Cap or limit: About 150 MW of behind-the-meter batteries, toward the state’s 2,000 MW storage goal for 2030.
Dates: Straw proposal Aug 19, 2026; comments were due Sept 10.
Maryland’s Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act pilots pay batteries for distribution grid support, with separate direct and aggregator paths (VGIC).
Worked example (gross): In BGE’s direct program, a 5 kW standalone battery would earn $1,500 a year on nameplate; paired with solar, $750 (EnergySage).
Wholesale access: PJM opens energy and ancillary services to aggregations on February 1, 2028 (PJM).
BGE, Pepco, Delmarva Power, Potomac Edison
Pays: BGE: $300/kW-year for standalone batteries, $150/kW-year solar-paired (nameplate basis); BGE aggregator path $90/kW-year plus event pay. Pepco and Delmarva: $300/kW-year.
Cap or limit: About 185.7 MW of approved peak reduction across the four utilities.
Dates: Expected in place for summer 2027; timing varies by utility.
Dominion Energy Virginia’s pilot combines existing demand response with new battery and managed EV charging programs, enrolled directly or through an aggregator (Dominion Energy).
Worked example (gross): Battery pay has not been published, so no example is shown.
Wholesale access: PJM opens energy and ancillary services to aggregations on February 1, 2028 (PJM).
Dominion Energy Virginia
Pays: Rates set in the regulator-approved tariff; battery pay not yet published.
Cap or limit: Up to 450 MW pilot; battery storage portion to reach 15 MW by July 1, 2028.
Dates: Approved by the State Corporation Commission in October 2026; pilot runs through July 2028.
PowerPair pays upfront for solar plus storage and is nearly out of capacity (PowerPair). The ongoing Battery Control credit continues for enrolled batteries (Enphase).
Worked example (gross): A 13.5 kWh battery with 8 kW of solar would receive $5,400 for storage plus $2,880 for solar, $8,280 in total, if it secures capacity before the program ends. Battery Control adds up to $708 a year.
Duke Energy Carolinas and Duke Energy Progress
Pays: Up to $9,000: $0.36/W-AC of solar (up to 10 kW) plus $400/kWh of storage (up to 13.5 kWh).
Cap or limit: Under 3% of capacity left in Duke Energy Carolinas; Duke Energy Progress fully allocated.
Dates: Program ends December 2026; contracts must be submitted by year-end.
Duke Energy
Pays: Monthly credit of up to $59 for one battery (up to $92 with multiple batteries).
Cap or limit: Required for PowerPair Cohort B (Bridge Rate); not part of Cohort A (Solar Choice).
Dates: 30–36 events a year of 1–3 hours; 20% reserve kept; up to 4 opt-outs.
Hawaiian Electric’s BYOD Plus pays upfront per kW committed to a daily 2-hour window, plus an export credit (Hawaiian Electric).
Worked example (gross): A battery committing 5 kW receives $2,000 upfront, or $4,000 at the low- to moderate-income rate.
Hawaiian Electric
Pays: $400/kW upfront ($800/kW for low- to moderate-income) plus a monthly export credit for 5 years.
Cap or limit: Battery paired with solar; daily 2-hour window.
Dates: Approved for 5 years.
Arizona’s three largest utilities all pay per kW-year for summer evening events (APS; CESA VPP table).
Worked example (gross): A battery averaging 5 kW earns about $550 a year with APS or SRP and $600 with TEP.
Arizona Public Service
Pays: $110 per kW-year of average event contribution.
Cap or limit: Pilot of up to 5,000 homes.
Dates: 2025–2030 pilot; May 1–Oct 31, 4–10 p.m.
Tucson Electric Power
Pays: $120 per kW-year, paid twice a year as bill credits.
Cap or limit: TEP residential customers.
Dates: Seasonal events.
Salt River Project
Pays: $110 per kW-year ($55/kW per season).
Cap or limit: Pilot of up to 5,000 customers.
Dates: Two seasons a year.
Xcel Energy pays upfront plus a small annual credit, but only for solar-charged batteries (Xcel Energy). Holy Cross Energy pays both upfront and monthly (CESA VPP table).
Worked example (gross): A 5 kW battery with Xcel receives $1,250 upfront plus $500 over 5 years.
Xcel Energy Colorado
Pays: $250/kW upfront up to $5,000 ($500 or $1,000/kW for impacted or income-qualified customers), plus $100 a year for 5 years.
Cap or limit: Battery must be charged from solar.
Dates: 2026 program opened May 21, 2026.
Holy Cross Energy (co-op)
Pays: Up to $500/kW upfront plus $10.60/kW per month for 5 years.
Cap or limit: Holy Cross members only.
Dates: Ongoing.
Rocky Mountain Power’s Wattsmart Battery now pays a flat upfront amount by battery size, then capped annual credits (Rocky Mountain Power).
Worked example (gross): An 11.5 kW battery receives $2,000 upfront, $100 a year in years 2–4 and $250 a year from year 5 (Rocky Mountain Power program guide).
Rocky Mountain Power
Pays: Residential: $2,000 for a battery of 10 kW or more, $1,000 below; then $15/kW in years 2–4 (up to $100) and $50/kW from year 5 (up to $250). Commercial: $200/kW up to 30 kW.
Cap or limit: Battery must be charged by on-site solar; incentive capped at 70% of equipment cost; 4-year commitment.
Dates: Flat incentives effective June 15, 2026.
The Idaho and Wyoming version of Wattsmart Battery began July 1, 2026 (CESA VPP table).
Worked example (gross): A 10 kW battery receives $2,000 upfront, then $150 a year from year two.
Rocky Mountain Power
Pays: $1,000 or $2,000 upfront by battery size, plus $15/kW a year from year two.
Cap or limit: Rocky Mountain Power customers.
Dates: Effective July 1, 2026.
Portland General Electric pays per kWh discharged during Peak Time Events, and solar is not required (Portland General Electric).
Worked example (gross): Twelve 3-hour events at 5 kW is 180 kWh, or about $306 a year.
Portland General Electric
Pays: $1.70 per kWh discharged during Peak Time Events.
Cap or limit: About 10–15 events a year; solar not required.
Dates: Pilot since 2020.
Illinois’ Clean and Reliable Grid Affordability (CRGA) Act creates the state’s first standalone battery rebate and an opt-in VPP with a pay floor (Citizens Utility Board). Hosted battery offers are also active in ComEd territory (see Case Study 02).
Worked example (gross): A 13.5 kWh battery would receive $4,050 upfront, plus at least $50 a year at 5 kW once the VPP opens.
Wholesale access: PJM opens February 1, 2028 (PJM); MISO on June 1, 2029 (PNNL).
ComEd (Clean and Reliable Grid Affordability Act)
Pays: $300/kWh rebate for systems installed through 2029 ($250/kWh from 2030); VPP pay floor of at least $10/kW of average dispatch.
Cap or limit: Residential and small commercial; rebate depends on approved tariffs and VPP enrollment.
Dates: Rider SDVPP expected to go live in spring 2027.
Ameren Illinois
Pays: Same statewide $300/kWh rebate and $10/kW floor once implemented.
Cap or limit: Tariff approved by the Illinois Commerce Commission.
Dates: Launch date not yet announced.
Entergy New Orleans pays per kW of average event use (CESA VPP table).
Worked example (gross): A battery averaging 5 kW earns about $625 a year.
Wholesale access: MISO’s Order 2222 implementation date is June 1, 2029 (PNNL).
Entergy New Orleans
Pays: $125 per kW-year of average use during events.
Cap or limit: Orleans Parish only.
Dates: Annual season.
Texas has no state battery rebate. Batteries earn through retail plans and ERCOT’s wholesale pilot, where reserve slices are filling up (ERCOT Phase 4 presentation). Hosted batteries are covered in Case Study 02.
Worked example (gross): Pay depends on the retail provider’s plan and market prices, so no fixed example is shown.
Wholesale access: ERCOT runs its own aggregated distributed energy pilot (ERCOT ADER pilot).
ERCOT, through retail providers and aggregators
Pays: Wholesale energy and reserve revenue, shared with participants by the aggregator. No fixed $/kW rate.
Cap or limit: 293 of 500 MW used; the ERCOT Contingency Reserve Service slice is full and Non-Spin is about 68% used.
Dates: Limit raised from 200 to 500 MW on Mar 2, 2026. Phase 4 (no cap, 1 MW minimum) proposed for December 2026.
The homeowner battery credit ended for spending after December 31, 2025. Batteries owned by a business or a third party (leases and power purchase agreements) can still use the Section 48E credit (Kirkland & Ellis). For a household, that value usually shows up in a lower lease price rather than as a cash payment.
Federal, via the IRS
Pays: Investment tax credit for commercial and third-party-owned (lease or power purchase agreement) batteries.
Cap or limit: Foreign Entity of Concern material rules apply.
Dates: Full credit for construction starting through 2033; 75% in 2034, 50% in 2035, none in 2036.
Federal, via the IRS
Pays: Was 30% of a homeowner-purchased battery’s cost.
Cap or limit: None remaining.
Dates: Repealed for spending after Dec 31, 2025.
States were chosen because they have at least one battery incentive or VPP program with published terms, or an approved program launching by 2027. Worked examples use a 13.5 kWh battery averaging 5 kW during events unless noted, at standard rates. Checked October 13, 2026.
Examples are gross program payments before aggregator shares, equipment, installation, early-exit repayment and taxes. They are not net profit or earnings guarantees.
Program figures are published terms checked October 13, 2026. They are gross program payments, not net profit, and are not earnings guarantees. Terms change; confirm with the program administrator before buying, installing or enrolling. ← All State and Utility Programs