What is the upfront incentive and how does it work for residential customers?

Upfront incentives are provided as upfront discounts or reflected in the customer’s purchase or lease agreement with their contractor or third-party owner (TPO).  The calculation of the upfront incentive is primarily based on the usable energy capacity (kWh) of the battery energy storage system (BESS), with some limiting factors. The upfront residential incentive is calculated based on the minimum of the following three formulas: 

• Residential Formula 1: BESS energy capacity (kWh) * Step Rate in $/kWh 
• Residential Formula 2: 50% of BESS total project cost 
• Residential Formula 3: Maximum per project incentive of $16,000  

Your incentive is also based on what customer class you qualify for and how much storage has already been installed through the program. The program is currently at Incentive Step 1. 

Incentive Step	Estimated # of Participants	Capacity Block (MW)	Non-LMI (low to moderate income) Upfront Incentive ($/kWh)	Underserved Communities Effective Upfront Incentive ($/kWh)	Low Income Household Effective Upfront Incentive ($/kWh)
1	1,400	10.0	$250	$450	$600
2	2,800	15.0	$212.50	$450	$600
3	5,800	25.0	$162.50	$450	$600
Total	10,000	50.0