Connecticut’s Energy Storage Solutions Program Adopts New Performance-Based Framework to Deliver Greater Value for Ratepayers and Customers
Effective April 1, 2026, the streamlined incentive structure will improve program performance and sustainability by reducing complexity and risk while maintaining higher incentives for grid edge, underserved, low- and moderate-income households.
HARTFORD, Conn. (February 2, 2026) – The Public Utilities Regulatory Authority (PURA) recently announced significant updates to the Energy Storage Solutions Program making a major shift toward a higher pay-for-performance model designed to maximize grid benefits and protect ratepayer investments.
Effective April 1, 2026, all new participants will enroll in a simplified Program framework that replaces the upfront incentive and Passive Dispatch structure with a smaller enrollment incentive and higher ongoing performance payments over a 10-year period tied directly to Active Dispatch participation. As the name implies, Active Dispatch events are actively called during the summer or winter by Eversource or UI on days when the grid is experiencing high demands to try to lower peak demand. Active dispatch compensates participants for average energy used from their battery to support the utility grid during peak demand in the summer and winter.
Key program changes include:
- End of Passive Dispatch for new customers: Passive dispatch was a preprogramed storage dispatch that followed a set summer schedule, and this has been removed from the program. All new customers will participate exclusively in active dispatch events, ensuring incentives are earned based on grid contributions.
- New enrollment incentives:
- Grid edge Residential: $130/kWh. Customers on the grid edge are defined as the top 10% of circuits with the highest number of outages per customer during major storms since July 1, 2012, and the top 10% of circuits with the longest outages due to major storms since July 1, 2012. Maps of circuits that meet grid edge criteria are found on the Program’s website.
- Non-grid edge Residential: $30/kWh
- Priority Commercial & Industrial (C&I): $10/kWh
- 10-year performance incentives:
- Residential: $300–$550/kW-year, with higher rates for underserved and low-income customers.
- C&I incentives are designed to provide greater cashflow in the first five years. Small and medium commercial: $325/kW for years 1 – 5, and $175/kW for years 6 – 10. Large commercial: $275/kW for years 1 – 5 and $175/kW for years 6 – 10.
- Expanded winter dispatch season: Up to 10 events per year, reflecting growing winter peak demand. The summer dispatch season is expected to stay at 30-60 events per season at this time.
These changes are designed to deliver greater grid benefits, resilience, equity, and cost-effectiveness for all Connecticut ratepayers. By shifting to a performance-based model, the program reduces ratepayer risk that systems will not perform as expected, encourages performance dispatch, and supports the state’s clean energy goal of deployment of 580 MW of storage by 2030.
Benefits for Customers and Communities:
- New enrollment and performance incentives make it easier for families and businesses to understand and access battery storage in the state.
- Higher performance payments encourage sustained participation and grid support to deliver maximum benefits to and reduce electricity rates for all ratepayers.
- Higher incentives for low-income and underserved households advance Connecticut’s Justice40 commitment to increase resilience against climate change.
These program changes were made as part of the Year Five Decision in Docket No. 25-08-05, released on December 17, 2025. Launched in 2022, the program is paid for by electric ratepayers, overseen by PURA, and administered by the Connecticut Green Bank, Eversource, and UI. To date, the program has approved nearly 15 megawatts of residential battery storage projects and more than 140 megawatts of commercial and industrial projects.
For more information on the program, visit https://energystoragect.com/.