Energy Storage Solutions Program

December 19, 2023


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. The Tranche 1 capacity for the Commercial incentives reached capacity in March 2023, so Tranche 2 has opened early; as of December 2023, around 35 MW of Tranche 2 have been approved.

Program Deployment Targets

Tranche 1 (2022-2024)    
   Tranche 2 (2025-2027)    
  Tranche 3 (2028-2030)    
Full Program
50 MW 100 MW 140 MW
290 MW
Commercial and Industrial    
50 MW 100 MW 140 MW 290 MW
100 MW 200 MW 280 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 the 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 1)

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%

Commercial incentives stay flat regardless of enrolled MW, but the incentive value will depend on the customer type: small commercial, large commercial, or industrial. 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.

Commercial Upfront Incentives (Tranche 1 and 2)

Installed Capacity    
Small Commercial ($/kWh)    
Large Commercial ($/kWh)    
Industrial ($/kWh)    
Priority Customer Adder
Tranche 1    
$250 $175 $100 +25%
Tranche 2    
$250 $175 $100 +25%

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)

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Connecticut
Incentive Type: Rebate Program
Web Site:
Administrator: Connecticut Green Bank
Start Date:
Eligible Renewable/Other Technologies:
  • Lithium-ion
Incentive Amount: Upfront:
Residential: $250/kWh for first 10 MW, $212.50/kWh for next 15 MW, $162.50/kWh for final 25 MW
Residential Underserved Community: $450/kWh
Residential Low-Income: $600/kWh
Residential Grid Edge Adder: +50%
Small Commercial: $200/kWh
Large Commercial: $175/kWh
Industrial: $100/kWh
C&I Priority Customer Adder: +25%

First 5 years: $200/summer, $25/winter
Final 5 years: $115/summer, $15/winter
Maximum Incentive: Upfront: up to 50% of project cost. Residential incentives also have a maximum of $16,000
Performance: $225/year in first five years of participation, $130/year in last five years of participation
Eligible System Size: Residential: no specified limit, but incentive maximum is $16,000
Small Commercial: less than 200 kW
Large Commercial: 200 - 500 kW
Industrial: at least 500 kW
Equipment Requirements: see program website
Installation Requirements: see program website
Ownership of Renewable Energy Credits: N/A


This program has 4 incentives
Technologies: Lithium-ion
Sectors: Residential
Parameters: The incentive is 250.00 $/kWh
Technologies: Lithium-ion
Sectors: Low Income Residential
Parameters: The incentive has a maximum of 450.00 $/kWh, The incentive has a minimum of 600.00 $/kWh
Technologies: Lithium-ion
Sectors: Commercial, Industrial
Parameters: The incentive has a maximum of 100.00 $/kWh, The incentive has a minimum of 0.00 null
Technologies: Lithium-ion
Sectors: Commercial, Industrial, Residential, Low Income Residential
Parameters: The incentive is 225.00 $/kW, The incentive is 130.00 $/kW


Name: Conn. Gen. Stat. § 16-243ee
Date Enacted: 06/16/2021
Effective Date: 07/01/2021
Name: PURA Year 3 Decision (Docket 23-08-05)
Date Enacted: 11/29/2023
Effective Date: 01/01/2024
Expiration Date: 12/31/2024

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.