What is the performance-based incentive and how does it work for residential customers?

Participating customers are eligible to receive performance-based incentives for the same battery energy storage system for up to 10 years. To receive ongoing performance incentives, the battery energy storage system must perform during the active dispatch events triggered by the utility company. The utilities will draw power from the energy stored in your home battery during set times, usually when demand for electricity is at its highest. This allows the utilities to avoid paying for extra electricity generation, and the savings are passed along to you. 

An active dispatch event takes stored energy from the battery and puts it into the grid. Active events may occur any day during the summer season (June – September) and winter season (December – March) within the dispatch window of 12:00 PM and 9:00 PM. The standard event duration is expected to last 3 hours. Performance incentives are based on average kW-AC your battery contributes per event for the summer and winter seasons. 

The customer normally does not need to take any action for their battery system to respond to an active discharge event. In most cases the utility will give 24-hour notification of an active dispatch. The utility companies will not call events for the two days preceding predicted severe outage events and during emergency conditions.  

Additionally, some manufacturers may collect a portion of the incentive payment. Please contact your battery manufacturer or installer for more information about your battery’s expected contribution and what, if any, portion of the incentive they collect. 

  Years 

1-5 

Years 

6-10 

   Summer  Winter  Summer  Winter 
Maximum Season Incentive ($/kW)  $200  $25  $115  $15 
Maximum Annual Incentive ($/kW)  $225  $130