Wednesday, April 10, 2019

Battery Storage Now Eligible for Energy Efficiency Funding: Massachusetts Creates Nationwide Precedent to Reduce Storage Costs

Montpelier, VT – Batteries are now eligible for state energy efficiency incentives in Massachusetts, and this first-in-the-nation policy should be considered by other states, according to a new report published today by Clean Energy Group (CEG).
 
The report details how Massachusetts, a national leader in energy efficiency, recently became the first state to formally incorporate energy storage as an active demand reduction measure in its energy efficiency funding program, and it explains the simple steps other states can take to do the same.

The report, “Energy Storage: The New Efficiency ― How States Can Use Efficiency Funds to Support Battery Storage and Flatten Costly Demand Peaks,” explains the steps Massachusetts took to become the first state to integrate energy storage technologies into its energy efficiency plan, including 1) expanding the goals and definition of energy efficiency to include peak demand reduction, and 2) showing that customer-sited battery storage can pass the required cost-effectiveness test. It also concludes that battery storage would have been found to be even more cost-effective had the non-energy benefits of batteries been included in the calculations.