National energy storage subsidy policies
The latest national energy storage subsidy policy in the United States includes up to $325 million for 15 projects across 17 states and one tribal nation to accelerate the development of long-duration energy storage technologies1. Additionally, energy storage installations that begin construction after December 31, 2024, will be entitled to credits under the technology-neutral Investment Tax Credit (ITC)2.
As the photovoltaic (PV) industry continues to evolve, advancements in National energy storage subsidy policies have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
6 FAQs about [National energy storage subsidy policies]
Do states need a new energy storage policy?
As states increasingly declare decarbonization goals, they will need to create new policies, rules and regulations that will enable the deployment of an unprecedented amount of energy storage, according to the Clean Energy States Alliance (CESA), which just released its States Energy Storage Policy: Best Practices for Decarbonization report.
What are the different types of energy storage policy?
Approximately 16 states have adopted some form of energy storage policy, which broadly fall into the following categories: procurement targets, regulatory adaption, demonstration programs, financial incentives, and consumer protections. Below we give an overview of each of these energy storage policy categories.
Does state energy storage support decarbonization?
A recent report from the Clean Energy States Alliance highlights best practices, identifies barriers, and underscores the need to expand state energy storage policymaking to support decarbonization in the United States. Decarbonization is the move away from fossil fuel resources and toward renewable energy.
Which states have set policy for energy storage deployment?
At the time the study was conducted, 22 states (plus the District of Columbia) adopted decarbonization goals, however, not all have set policy for energy storage deployment. California and New York are cited as examples of states with “very advanced and sophisticated policy measures”. Many others are beginning to assess energy storage policy needs.
What is a storage policy?
All of the states with a storage policy in place have a renewable portfolio standard or a nonbinding renewable energy goal. Regulatory changes can broaden competitive access to storage such as by updating resource planning requirements or permitting storage through rate proceedings.
How are battery energy storage resources developing?
For the most part, battery energy storage resources have been developing in states that have adopted some form of incentive for development, including through utility procurements, the adoption of favorable regulations, or the engagement of demonstration projects.